GLOBAL FOOD OUTLOOKFORECAST PERSPECTIVES

REMAKING FOODEXPERIENCES

CONVENIENCE RETHINKING SHOPPING

EATING IN THIS FUTURE• IntheUnitedStates,Europe,and

partsofAsia,newexpectationsaroundconvenienceemergeinurbanareaswheretechnologycompanies—includingestablishedplayerssuchasAmazonaswellasemergingbusinessessuchasTaskRabbit—offersame-dayfooddeliveryatlowerandlowercost.Overtime,theseservicesbecomeincreasinglyefficientandavailableoutsideahandfulofdensecities.

• Whiletheseservicesinitiallytakelongerandcostmorethangoingtoasupermarket,theyhelpurbanconsumersdramaticallyreducetimespenttravelingtoshop.Theseservicesfirstgainpopularityasatime-savingstrategy,appealingtothosewithoutcarsandalsotoyoungparents.

• Consumersbeginbyusingtheseshoppingservicestoautomatepurchasesofstaplepackagedfoodssuchascereal,snacks,andcoffee.Ascomfortwiththeseautomatedsystemsincreases,consumersexpandorderstomeatandproduce.

• Augmented-realitytoolssuchasGoogleGlassenabletraditionalretailersaswellasfoodmanufacturerstoprovideconsumerswiththeexperienceofastore,withfeatureslikeeasytobrowseshelves,withouttheneedforaphysicalstore.

• Automatedshoppingfeaturesaresubsequentlybuiltintocarsandadoptedbyrestaurantsandcafessothatconsumerscanplacefastfoodandcoffeeorderswhileintransitandpickuptheirordersindrive-throughlines.

• Railcommutersareabletobrowserecipeswhileonthetrainandhavealloftheingredientsdeliveredandreadytopreparewhentheygethome.Otherssetupfoodshoppingtobeautomatic,akintosettingupelectronicbillpayment.

• Astraditionalpathstopurchasearetransformedovertime,somefoodretailersrefocustheireffortsonprovidingservicesandexperiences—suchascookingclasses,fooddemonstrations,andnutritionadvice.Manysuper-marketscloseorshifttowardprovidingdeliveryservices.

JUST-IN-TIME DELIVERY TRANSFORMS CONSUMER UNDERSTANDINGS OF CONVENIENCE

Overthenextdecade,theconvergenceoftwoforceswillreshapeconsumers’expectationsabout

convenientfood.First,asfoodshoppingshiftsfromanactivityperformedinarestaurantorsuper-

markettosomethingconsumersengageinwhiledriving,sittingathome,orwaitingforthetrain,

distinctionsbetweenfreshandfastfoodwillblur.Second,automatedsystemsfordeliverywill

turnpackagedfoodsintoautomatedpurchases.Astheseforcesconverge,theywilltransformany

momentintoanopportunitytoshopandmakeobsoletemanyofthereasonstogoshoppingina

brick-and-mortarstore.

Convenience

GLOBAL SIGNALS

BRAZILCreating gourmet

convenience foods

BecauseofthepervasivefearofcrimeinmajorBraziliancities,high-enddeliveryandconveniencefoodshavebecomeincreasinglypopular

inrecentyears.Thesedeliveryservicesarebeingaugmentedby

newlinesofhigh-end,conveniencefoodofferedatstoresincludingAmüseinSaoPaulo.Openedin

December2012,Amüsepurveysawidevarietyofgourmetvacuum-

packed,canned,andbottledfoods,allproducedwithoutpreservatives.Thestorebillsitsboutiqueready-

madefoodasaboontothosewhowanttoprepareaspecialmealfor

friends—orsimplytoeatwell—withouthavingtoleavehometo

shopforfreshingredients.

Source:RevistaTPM

Sou

rce:AmuseFo

odStore

Sou

rce:Yahoo

New

sSingapore

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oolworthsAustralia

Convenience

AUSTRALIACoordinating grocery delivery to commute locations

Marketedunderthename“Click,FlyandCollect,”WoolworthsgrocerieshaslaunchedaservicetoallowairplanepassengerstopickuptheirgroceriesattheMelbourneAirportbeforeheadinghome.Recognizingthatmorethan80,000passengerstravelthroughtheairportonadailybasis,Woolworthshopestheservicewillappealtopassengersonthebasisoftimesavingsandconvenience.Itsignalsabroadershift—onewhereinsteadofheadingtothesupermarket,groceriesmeetshoppersatconvenient,centralizedlocations.

Source:WoolworthsAustralia

INSIGHTS

New expectations around convenience transform when and where people shop

Asthephysicalstore—bothasaplaceforindividualstogoandasacentral-izeddistributionpoint—becomeslessandlessimportanttofoodshopping,thetime,location,andotherpatternsthathaveshapedpaths-to-purchasewillberemade.Theseforceswillsimultaneouslyreducetheneedtovisitstoresforstaplepurchasesandcreatenewkindsofjust-in-timeandimpulsepurchases.

Convenience becomes a baseline expectation

Overthecourseofthedecade,designingconveniencewillmovefrombeinganadvantage—asitistoday—tobecominganecessarystrategyforremainingcompetitive.Justasmostpeopleexpecttobeabletoorderjustaboutanyproductseamlesslythroughawebsitetoday,theywillsoonexpectthesameconveniencefororderingthroughphones,carsandotherpiecesoftechnology—itwillbecomethestandard.

Desires shift toward novel experiences

StoressuchasAmüseinBrazilsignaltheneedtothinkofconveniencenotasanendinitself,butasoneofseveralvaluesembeddedinfoodproducts.Thiscouldbereflectedinthedevelopmentofluxuryconveniencefoods,orindefiningnewexperientialcomponentstoretailstoresthatbringnoveltytoshopping,butcon-sumerswilllookforfoodsandofferingsthattakethehassleoutofshoppingwhileenhancingtheexperienceofshoppingandeating.

CHINAShopping through augmented-reality showrooms

Yihaodianhasbeengrabbingheadlinesworldwideforinnovativeaugmented-realityshowroomsandgrowingrapidlysinceits2007launch.Whatstartedasanonlinesuper-marketofferingmostlyfast-movingconsumerproducts,nowsellsamuchwidersetofproductsthroughawidevarietyofmobileandaugmented-realityservices.Recently,Yihao-dianannouncedplanstodevelop1,000virtualsupermarketsinvacantlots—usingtheview-finderofasmartphonetoenableshopperstosimulatetheexperienceofasupermarketwhilemakingtheirwayaroundthecity.

Source:CNN

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ARTIFACT FROM THE FUTURE

AUTONOMOUS VEHICLE SHOPPING SYSTEMS

WHAT: You’vebeeninstop-and-gotrafficforalmostanhournow.Younormallyusethistimeinthepassengerseatofyourself-drivingcartofinishupworkemails,butallthosearetendedto,soyoudecidedosomegroceryshoppingandsurpriseyourkidswiththeirfavoriteAmazonianfruitstonight.Yourdaughterlovescupuaçu,andyou’reexcitedbythenew“delaydelivery”feature,whichanalyzescurrenttrafficandmakessurethatyourpurchaseisroutedtoarrivehomeatthesametimeyoudo,soyoucanbetheonetohandittoherdirectly.

SO WHAT: Inadecade,newtechnologiesofcoordinationwillmakeitpossibletoorderalmostanythingfromanywhereandhaveitarriveatadesignatedplaceandtime.Newplatformsandsmartlogisticssystemsarepoisedtodisruptthelargelyuntappedmarketforfreshfooddelivery.AsthecoldchainexpandsinplacessuchasBrazilorChina,rapidlyurbanizingareasmightleapfrogthelessefficientsupermarketmodelinfavorofstreamlinedfooddeliverysystems.