Megatrends, at a very basic level, dictate the “direction of travel” for economic, social and political activity; investments made on this basis will receive powerful trend support. Today, the transformation of the global food system represents one such structural force. As demographic expansion, rising income and growing climate pressure converge, food sustainability as a strategic, long-term investment theme is no longer a forward-looking concept but a current market reality.
The global food system has been, and continues to, undergo a structural transformation driven by population growth, climate change and the rise of a larger, wealthier global population. The global middle-class population is projected to increase from 4.1bn currently to just over 5bn by 2035. By 2050, global food demand is expected to increase significantly as population rises and diets shift from staple grains to higher-value proteins and dairy products ‒ a change that exponentially increases the strain on land, water and feedstock systems worldwide.
Climate volatility is already reshaping agricultural risk. Extreme temperatures, droughts, floods, and disease outbreaks are putting pressure on yields and across the agricultural value chains. This is increasingly visible in heightened price swings.
