The global food and agricultural industry for
2018 totaled about $8.7 trillion, according to Plunkett Research estimates, or
about 10% of the world's GDP.
Global
food exports totaled $1.47 trillion in 2017, according to the World Trade
Organization (latest data available).
While
it is obvious that food is of equal importance to all people on planet Earth,
the relative cost of that food is not equal.
It varies widely due to such influences as location, local food industries
and the availability of proper infrastructure for food transportation and
storage.
Households in well-developed nations such as
the U.S.
Canada, Singapore and countries in Europe, spend a relatively modest
portion of household income on food, typically 11%-15%.
In less-developed nations, such as Pakistan,
Nigeria and the Philippines, food make account for more than 40% of spending,
making it hard for families to invest in education or health care.
In America, the average household spent $7,729
on food during 2017, up from $7,023 the previous year.
That included $4,363 spent on food for
at-home dining, and $3,365 for dining out.
The retail grocery store and supermarket
industry in the U.S., with 40,498 stores, totaled about $660.6 billion in revenues
during 2018, up from $641.1 billion the previous year, according to U.S.
Department of the Census figures.
However, food products and beverages in America and elsewhere are sold
at a wide variety of
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The global food and agricultural industry for
2018 totaled about $8.7 trillion, according to Plunkett Research estimates, or
about 10% of the world’s GDP. Global
food exports totaled $1.47 trillion in 2017, according to the World Trade
Organization (latest data available). While
it is obvious that food is of equal importance to all people on planet Earth,
the relative cost of that food is not equal.
It varies widely due to such influences as location, local food industries
and the availability of proper infrastructure for food transportation and
storage.
Households in well-developed nations such as
the U.S. Canada, Singapore and countries in Europe, spend a relatively modest
portion of household income on food, typically 11%-15%. In less-developed nations, such as Pakistan,
Nigeria and the Philippines, food make account for more than 40% of spending,
making it hard for families to invest in education or health care.
In America, the average household spent $7,729
on food during 2017, up from $7,023 the previous year. That included $4,363 spent on food for
at-home dining, and $3,365 for dining out.
The retail grocery store and supermarket
industry in the U.S., with 40,498 stores, totaled about $660.6 billion in revenues
during 2018, up from $641.1 billion the previous year, according to U.S.
Department of the Census figures.
However, food products and beverages in America and elsewhere are sold
at a wide variety of stores other than supermarkets. To get the full U.S. picture, it is important
to consider food and beverage sales at 62,634 non-traditional food-sellers such
as wholesale clubs and dollar stores, estimated at $492.5 billion by Plunkett
Research as well as $199.2 billion in revenues at 161,052 convenience stores
(not including convenience store gasoline sales).
The restaurant and bar industry accounted for
another $716.3 billion in revenues in the U.S. during 2018, (up from $678.6
billion the previous year) according to the Bureau of the Census. The National Restaurant
Association estimated that, for 2018, its industry would employ 15.1 million
people at more than 1 million locations.
Estimates of total food industry revenues can
vary widely due to many factors. For
example, a large portion of supermarket sales is made in non-food items such as
drugs and personal care goods, and many types of non-food stores sell small
amounts of specialty food products.
Also, the National Restaurant Association’s estimates of total annual
revenues ($825 billion projected for 2018, up from $799 billion in 2017) are
always higher than figures gathered by researchers at the Census, and both
groups may miss revenues generated by caterers and other non-traditional
prepared food sellers. On a very broad
basis, $1.90 trillion to $2.10 trillion is a reasonable estimate for total U.S.
retail food and beverage industry revenues for 2018, with growth of about 3%
expected for 2019, unless an economic downturn hits.
Outside the U.S., food retailing is rapidly
becoming more diverse and sophisticated in emerging markets. For example, modern convenience stores are
widespread in major Asian cities, such as the large number of highly popular
7-11 stores found in Thailand. Also,
discount stores that sell food products, among other items, are increasingly
popular, evidenced by the rapid growth of Wal-Mart in Mexico, and the
continuing fast spread of stores in China owned by Wal-Mart and its
competitors. Nonetheless, outside of the
major cities, much of the food retailing in emerging markets is conducted by
very modest local markets, often run as family operations.
Food sales by restaurants are spreading very
quickly in the emerging world as well.
For example, America’s Yum! Brands, operator of KFC and Pizza Hut, grew
very quickly in China, where it operates thousands of units
in locations ranging from the giant metropolises such as Shanghai and Beijing
to remote, smaller cities of growing importance. (Yum! has spun-off its China restaurants into
a separate company.) Yum! Brands is a
true leader in this regard, and it is already expanding in Africa, which is the
next frontier in the emerging world.
Yum! Brands’ success has spawned a great number of domestic competitors
within China.
U.S.
farm sector gross receipts for crops, livestock and other products were
projected to be $374.9 billion in 2018, according to the U.S. Department of
Agriculture.
America’s agricultural sector enjoyed $138.2
billion in exports in 2017, up from $134.7 billion in 2016 and $133.1 billion
in 2015. U.S. agricultural imports in
2017 were $121.0 billion, up from 2016’s $114.4 billion and 2015’s $113.8
billion.
Aquaculture (fish farming) produced an
estimated 171 million tons of fish globally in 2016, up from 66.1 million tons
in 2010, according to the UN Food and Agriculture Organizations (FAO). This production is growing quickly. By 2030, aquaculture is projected to provide
two-thirds of total fish for human consumption.
Fish farming is extremely active in the U.S. as well as in nations such
as the Philippines, China, Norway and Vietnam.
Tilapia, salmon and shrimp are among the leading products.