Booming demand from Asia, Latin America and Africa’s ‘middle classes’ for imported food will transform the global food economy but increase prices for UK shoppers, a new report from Deloitte has warned.
The Food and Beverage 2020 report found 64% of business food executives thought emerging markets would become “major food importers” over the next eight years.
This would result in greater competition for supply, increasing food prices globally and in the UK, Deloitte said.
“British consumers face food price increases of up to double the rate of inflation over the next 10 years, with significant volatility,” said Deloitte partner Mark Hill.
“We will also see variability by product category, with high energy and high protein products, like meat, likely to increase most sharply. The UK will need to improve self-sufficiency.”
However, there were potential benefits to British manufacturers - with 62% of respondents saying new markets were “vital” to growth. British companies would be also well placed to trade on their reputation for innovation, quality, food safety and traceability, Deloitte added.