Sustainability 'to the fore' for food industry with desire to cut costs the driver
Ireland exports about 90% of its food and drink production, according to Bord Bia, leaving 10% of its produce for Irish consumers to enjoy.
Sustainability has returned to the fore for many in the food and drink industry, with a desire to cut down on costs being the driver as much as environmental concerns.
The findings of Bord Bia's 2022 Irish Foodservice Market Insights Report released this week show that the Irish foodservice, or ‘out of home’, industry, experienced significant growth of 61% in value to reach over €8.2bn this year.
According to Bord Bia, this represents an almost full recovery to pre-pandemic levels, but it is set against a forecast for modest growth of 11.6% in 2023.
While majority of Irish consumers are enjoying the social aspect of dining out now that Covid-19 public health restrictions have been fully lifted, a large proportion is concerned about their finances and are adapting their eating-out habits to reduce costs.
According to Bord Bia foodservice specialist Maureen Gahan, there are a number of new trends and key imperatives for Irish food and beverage suppliers "to familiarise themselves with in order to ensure that their own businesses remain relevant to industry needs moving into next year".
"The industry is also looking for suppliers to come to them with innovative menu offerings that can create consumer excitement and drive repeat visits," Ms Gahan added.
Significant economic headwinds will remain in place for the food industry in 2023, including higher inflation, rising interest rates, global uncertainty, and rising energy prices - "all of which are likely to create consumer pull back and add to existing industry challenges", Ms Gahan said.
56% of those surveyed for the report said that food being locally sourced or produced is a priority for them when eating out.
Ireland exports about 90% of its food and drink production, according to Bord Bia, leaving 10% of its produce for Irish consumers to enjoy.
According to a study by KPMG carried out this year, 70% of Irish consumers are placing more emphasis on local produce.
While 62% say they want more sustainably produced food, only one-third are willing to pay more for it, according to the survey results.
KPMG said that trends show younger consumers are making more of an effort towards sustainable food practices and are willing to pay more.
“There is clearly a strong appetite for sustainable homegrown Irish produce among the public, which is a great opportunity for farmers, processors, and retailers alike to take advantage of," KPMG partner and head of food and agri Tom McEvoy said.
"Perhaps the biggest challenge will be remaining competitive on price, or convincing the public that it’s worth paying a premium on local and more sustainable products," he added.
