In recent years, trade in Europe has faced various difficulties and new situations. Their natural consequence is certain changes that can be noticed on the food market. In addition to "random" factors, such as the coronavirus pandemic, the war in Ukraine or inflation, there are also changes in consumer preferences, changes in their nutritional awareness and certain fashions that also include the issue of nutrition.

There is no denying that retail customer demand and preferences influence the actions of retailers, wholesalers and manufacturers. What trends can we currently observe and how do they affect distributors?

Increased interest in organic and local products

Customers are increasingly choosing products that are grown sustainably and come from local sources. Exporters must adapt their offer to these consumer preferences by offering organic products or products from specific regions. Although the crisis and high prices may to some extent affect the preferences of retail customers, a higher level of nutritional, economic and ecological awareness among European societies has simply become a fact. As statistics show, 7 out of 10 Polish consumers (and it should be emphasized that Poland is a large Central European country with a population of over 38 million people) choose organic food when shopping. Being "Eco" and sustainable development have ceased to be empty slogans and have become a real approach of European consumers to the food they consume.

How does this translate to manufacturers and wholesalers? Ecological trends, the mission of sustainable development, as well as population growth, are forcing a return to regenerative farming practices. These practices involve the use of natural principles and practices that enhance soil biodiversity, while rejecting the use of chemicals and artificial fertilizers by farmers to keep the farmed land fertile. Historically, regenerative farming techniques have been used for centuries and have formed the basis of farming. However, they have been replaced by modern techniques and the development of agricultural chemistry. However, from 2022, "return to nature" and regenerative agriculture become one of the main trends in food production, which is undoubtedly a response to changes in consumer preferences.

Well… the dependency chain is simple. The customer wants organic food, so the retailer looks for one in the warehouse. And since wholesalers want to expand their offer with "Eco" products, manufacturers must adapt to demand.

Growth in popularity of alternative diets

More and more people are choosing vegetarian, vegan or gluten-free food products. Exporters must take these trends into account and offer products that meet such preferences. It can even be said that one of the most "hot" topics in the food industry is plant-based alternative proteins. Importantly, the increased interest in plant proteins applies not only to vegans and vegetarians, but also to people on a traditional diet who, however, want to reduce meat consumption for various reasons.

Interest in alternative proteins has surged in America over the last decade. However, alternative proteins are also gaining popularity in European countries. According to expert estimates, the European market of alternative proteins will reach EUR 3.6 billion in 2026.

Consequences of the war in Ukraine

It cannot be denied that the war in Ukraine affected the food market not only in Europe but also in the world. Ukraine was previously one of the world's major suppliers of sunflower oil and grain. The destruction of the Ukrainian agricultural and road infrastructure and the blockade of the Black Sea ports caused violent problems on the food market and problems with the supply of food raw materials to some parts of the world. It is difficult to predict what the long-term effects of this situation will be, but it can be suspected that some European wholesalers will start acquiring these "Ukrainian" raw materials from other sources in order to be able to respond to demand.

Inflation and rising food prices

Inflation has now become a global problem, although, of course, price increases vary from region to region and even from region to region in Europe. Energy costs are rising, and so are the costs of food production.

Currently, the situation on the food market requires reconciling two seemingly opposite trends. One of them is the provision of cheaper food, which is associated with a decrease in the purchasing power of consumers. Still, Europeans want to eat healthy and organic food, which has never been the cheapest. In order to meet the requirements and possibilities of customers, retailers are no longer limited to local producers and wholesalers, but look for cooperation partners in other parts of Europe. It can be seen that for some time the eyes of Western European retailers have been focused on wholesalers from Central and Eastern Europe. Food from countries such as Poland can still be purchased at attractive prices, and its quality is high and appreciated by consumers. Cheaper food from other parts of the European Union must also meet general EU standards, which facilitates the procedure of importing and placing imported food on the market.

Dynamic development of e-commerce

The increase in online sales is a trend that affects the food trade in Europe. Customers are increasingly buying groceries online, which means that exporters need to adapt their sales strategy to this trend.

On the one hand, the development of online sales makes it easier for wholesalers who can reach new customers and new markets with their offer. It is also a beneficial tool for retailers, who gain easy access to the offer of distributors from other parts of Europe and can easily compare offers.

Although the development of e-commerce for wholesalers is a great opportunity, it also requires changes in the organizational structure. A potentially larger number of customers requires the adaptation of warehouses for a greater number of products of various types - and such adaptation of warehouse space may be associated with considerable costs. Secondly, exporting food to newer areas requires developing a logistics network and dealing with customs and legal procedures. However, it can be noticed that more and more European wholesalers adapt to new requirements and constantly expand their offer with additional services, which further increases the convenience of their customers.

New regulatory requirements in the European Union

The European Union introduces new food requirements, such as limiting the amount of salt, sugar and fat in food products. Exporters must adapt their offer to these requirements in order to be able to sell their products in Europe. To some extent, European regulations are a response to the need for healthy food that is not saturated with chemicals. However, they make moving towards sustainable organic farming for food producers not only a matter of choice (adjustment to potential customer requirements), but also a matter of obligation.

The impact of these trends on exporters depends on many factors, such as the type of products offered by exporters, their ability to adapt to changing consumer preferences, the availability of technology for sale online, as well as EU regulations and requirements. Exporters who are able to adapt their offer to these trends can undoubtedly find new sales opportunities and increase their profits.

 

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