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Global Food Marketer™ February 2024

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FEBRUARY 2024

Global Food

Marketer

™

Educating & Enriching News of Global Food Markets

In July 2023, Food Export led a Focused Trade Mission to Mexico City, Mexico that included a stop at City Market, a grocery store.

2024 Global Food Trends & Export Market Insights What Consumers Want, 2024 Global Food Trend Projections Today’s consumers are well-informed about

holistically. Health-conscious consumers are balancing

environmental, geopolitical, and ethical impacts

the benefits of health and pleasure by seeking flavorful

surrounding their eating habits and are eager to support

foods that boast functional health benefits, such as

transparent producers. As changes in climate patterns

antioxidants, pre and probiotics, and those that support

become more evident, consumer habits suggest buyers

joint and gut health. In terms of flavor, trend-spotters

prefer products that adhere to eco-friendly practices,

predict that products with complex spice profiles, snack-

from sourcing ingredients to packaging. Highlighting

sized luxuries, high-end instant noodles, and “clean

your commitment to sustainability and ethical practices can resonate positively with increasingly aware

caffeine” coffee alternatives are likely to do well with

audiences. Additionally, global consumers are thinking

consumers this year.

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2024 Global Food Trends & Export Market Insights (cont.) Geopolitical Impacts Spillover from the Israeli/Gaza conflict is impacting trade routes along the Red Sea through the Suez Canal, which handles about 12% of global trade. In response, major shippers are redirecting vessels to avoid the area, increasing shipping times and costs and interrupting the transport of goods in and out of the region. While the fiscal impacts of rerouting ships around the Cape of

Global markets have experienced

Good Hope are significant, freight costs are still lower than they were two years ago when supply chains were

fluctuations in energy, fertilizer,

strained by the pandemic and the canal was blocked by

and food prices, impacting various

the Ever Given container ship.

regions, particularly low- and

The Russia-Ukraine war began in February 2022 and

middle-income countries (LMICs).

has significantly disrupted global agricultural trade. Both countries are major agricultural exporters, and the conflict has led to challenges affecting the international

Ukrainian agricultural areas have further exacerbated the

food system. The conflict has limited the flow of

situation. The direct damages to Ukrainian agriculture are

agricultural goods, mainly wheat and fertilizers, leading

estimated at $8.9 billion, with an additional $34.25 billion

to increased prices worldwide. The blockade of Black

in losses due to reduced productivity. Global markets have

Sea ports by Russia and the placement of land mines in

experienced fluctuations in energy, fertilizer, and food prices, impacting various regions, particularly low- and middle-income countries (LMICs). The war has already affected three planting seasons in Ukraine, leading to a significant decrease in global wheat exports. Sub-Saharan Africa, in particular, has seen a 7% drop in wheat imports due to decreased exports from Russia and Ukraine. Climate Forecast Persistent El Niño conditions are expected to continue into the first half of 2024, posing a threat to essential crops like rice, wheat, and palm oil in major agricultural regions. In Australia, poor rainfall impacts wheat output, leading to a projected 33.9% decline, while Argentina anticipates a 55.4% increase in wheat production due

In terms of flavor, trend-spotters

to high rainfall. Soybean production in Argentina and Brazil is also set to rise. El Niño’s adverse effects extend

predict that products with complex

to Malaysia, potentially reducing palm oil production by

spice profiles, snack-sized luxuries,

10-20%, while Indonesia, experiencing severe drought, has ordered military assistance for rice planting. The

high-end instant noodles, and “clean

consequences reverberate globally, impacting crucial

caffeine” coffee alternatives are likely

crops and prompting fluctuations in wheat exports, with

to do well with consumers this year. FEBRUARY 2024

Australia facing a 29% decline. 2

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Success Stories FOOD EXPORT’S MIDWEST BUYERS MISSION CONTINUES TO GENERATE EXPORT SALES In July 2022, Food Export hosted their annual Midwest Buyers Mission, connecting over 50 U.S. suppliers with 17 international buyers from 15 countries. At one of these meetings, Chicago-based City Foods, a Food Export Buyers Mission participant since 2009, forged a lucrative business relationship with a Saudi Arabian buyer, which resulted in a substantial expansion of their sales in the Middle East region. Read more about City Foods and how Food Export helped match them with the perfect buyer here.

POPZUP POPCORN EXPANDS BRAND AWARENESS IN CANADA In 2022, PopZUp Popcorn participated in Food Export– Northeast’s Branded Program with a goal to boost its presence in the Canadian market. By utilizing program funds to offset trade show costs, the New Hampshirebased snack supplier successfully garnered attention, establishing new distributor relationships and securing placements in major Canadian retail stores. Notably, the Branded Program facilitated a meeting with Canada's largest specialty food distributor, paving the way for ongoing orders and market expansion. Learn more about PopZUp and their success in the Branded Program here.

PERSEVERANCE AND TENACITY PAYS OFF FOR KANSAS SUPPLIER Since 2020, Meat Mitch, an Award-winning Kansas-based barbecue spice and sauce supplier from Shawnee Mission, Kansas, has participated in Food Export–Midwest’s Branded Program, which has helped them gain new exports into markets in both Canada and New Zealand. Read more about their successes in the Branded Program and their continued involvement here.

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Country Profiles

Japan

P

Processed VegetP

Prepared/Preser Processed Vegetables & Pulses F

Processed

P FoodSeafood Preparation Prepared/Preserved

TOP PROCESSED FOOD EXPORTS TO JAPAN Vegetables Prepared/P Processed IN 2022 INCLUDED:

3rd Largest World Economy

Prepared/Preser Food Preparations & IngredientsP

Prepa Processed Vegetables &Food Pulses Prepared/Preserved Se

The U.S. is Japan’s

Processed Vegetables & Pulses

top agricultural supplier,

importing $14.6B

Prepared/ Food Prepared/ Preserved Preparations Preserved A Processed/Prepa Prepared/Preserved Meats Seafood & Ingredients Meats

Prepared/P Prepared/Preserved Seafood Food Preparations & In

of agricultural products in 2022,

$6.8 billion

Alcoholic Processed/Prepared DairyBeverag ProduN

of which were

Processed/ Prepared Dairy Products

finished consumer-oriented products.

4th largest export market

Alcoholic Beverages

Non-Alcoholic Beverages

Non-Alcoholic BeF Alcoholic Beverages

AlcoholicDB Prepared/Preserved Meats Processed/Prepared Fats & Oils Non-Alcoholic Beverages

for U.S. consumer-oriented

S

Non-Alcoh Processed/Prepared Product AlcoholicDairy Beverages

food products

FEBRUARY 2024

Processed Food Preparations & Ingredients Prepared/Preserved M

Check out this video to Discover more about the learn more about what Japanese market in our Japanese consumers are full country profile here. Syrups and SweeC Fats & Oils looking for. 4

Fats & Oils Alcoholic Beverages Non-Alcoholic Beverag W W W.FOODE XPORT.ORG


Prepared/P

Country Profiles

Food Preparations & Ingredients M Prepared/Preserved

Processed Vegetables Food Prepa

Brazil

Prepared/Preserved Meats Processed/Prepared D

Prepared/Preserved Se Prepared/P

Processed/Prepared Product AlcoholicDairy Beverages

Food Preparations & In Processed

Alcoholic Beverages Non-Alcoholic Beverag Processed

Prepared/Preserved B Processed Vegetables &Alcoholic Pulses M

Non-Alcoholic Beverages Fats & Oils Prepared/P

TOP PROCESSED FOOD EXPORTS TO BRAZIL Processed/Prepared D Non-Alcoh Prepared/Preserved Seafood IN 2021 INCLUDED:

13th largest export market

Fats & Oils Syrups and Sweeteners Food Prepa

Alcoholic Beverages Fats & Oils Food Preparations & Ingredients

for U.S. consumer-oriented food products in Latin America

Food Preparations & Ingredients

Increasing demand

Non-Alcoholic Beverag Syrups and Prepared/Preserved Meats

Condiments,Snack Sauces, Jams & Jellies Foods Processed

for functional foods not produced locally, including

Condiments, Sauces, Jams & Jellies

gluten-free, organic, lactose-free and vegan

Fats & Oils Condiment Processed/Prepared Dairy Product

Chocolate & Processed/ Prepared Confectionery Snack FoodsDairy Chocolate &Alcoholic Confection B Products

Snack Foods

Syrups and Sweeteners Snack Food Alcoholic Beverages

$212.7M

Chocolate &Dairy Confectionery Products Non-Alcoh

total of U.S. consumer-ready products

Condiments, Sauces, Ja Non-Alcoholic BeveragesChocolate

exported to Brazil in 2021

FEBRUARY 2024

Alcoholic Fats & Oils Syrups and Syrups and Sweeteners Condiments, Sauces, Ja Prepared/P Beverages Sweeteners

Discover more about Learn more about the the Brazilian markets Brazilian market in our from our local In-Market full country profile here. Dairy Products Oilseeds Fats & Oils Representatives. 5

FoodsDairy Prod Fats & Oils Snack W W W.FOODE XPORT.ORG


Non-Alcoholic Beverages Fats & Oils Syrups and

Country Profiles

Condiments, Sau Syrups and Sweeteners Fats & Oils Syrups and Sweeteners Condiment

Nigeria

SnackJams Foods Condiments, Sauces, & Jellie Syrups and Sweeteners Condiments,Snack Sauces, Ja Food

Chocolate & Con Snack Foods Condiments,Snack Sauces, Jams & Jellies Foods Chocolate

Dairy Products Chocolate & Confectionery Snack FoodsChocolate &Dairy Confection Prod Dairy Products Oilseeds TOP U.S. PROCESSED FOODS EXPORTED TO NIGERIA Chocolate &Dairy Confectionery Products Oilseeds IN 2022 INCLUDED: Nigeria boasts Africa’s

Seafood and AquP Oilseeds Dairy Products Oilseeds Seafood an

largest population and consumer market

Dairy Products

In 2022, Nigeria

imported $58M in consumer-oriented food products from the US.

Soups

Oilseeds

Seafood and

Alcoholic

Soups P Aquatic Food Beverages Seafood and Aquatic Food Oilseeds Seafood andSoups Aquatic Fo

Bakery IngredienF Soups Seafood andSoups Aquatic Food Bakery Ing Bakery Ingredients

Food Preparations & Ingredients

Bakery Ingredients Soups Bakery Ingredients

Higher end consumers are increasingly searching for

higher quality food and beverages

P Bakery Ingredients Explore more about Sub-Saharan African Markets here.

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Empower Your Export Journey with Food Export’s Comprehensive Resources Food Export maintains a vast database of tools and resources to help you kickstart and supercharge your export journey. You don’t need to Google “how to’s” and filter through complex articles and databases of content. Go right to the source and pick the content that’s right for you and what you need.

Market Promotion

Market Entry

Submit an Application

Use “Market Builder”

Advice for Meeting

to Grow Your Export

to Help you Find New

Foreign Buyers

Marketing Budget

Markets and Customers

Exporter Education

Exporter Education Exporter Essentials

Export Report Food Export–Northeast and Food Export–Midwest continue to celebrate big wins as we help more businesses face the exciting challenges of joining export markets. In 2022, Food Export–Midwest helped U.S. suppliers gain 323 New Market export sales, increasing the prior year by 282% and resulting in over $1.4 billion in Total Export Sales. Food Export–Northeast celebrated similar successes by making 21,947 connections between suppliers and new buyers, resulting in over $450 Million in Total Export Sales for program participants. Food Export– Northeast celebrated similar successes by making 21,947 connections between suppliers and new buyers,

northeast

midwest

resulting in over $450 Million in Total Export Sales for program participants.

FEBRUARY 2024

323

export sales to a new market (up 282% from last year)

21,947

contacts made for suppliers to new buyers

$1.4B

total export sales for program participants

$450M

total export sales for program participants

7

587

unique companies participating

1255

total participants registered in Food Export programs

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Product Highlights

– Shellfish

Based on Top U.S. Processed Foods Exported to Japan in 2022

• American lobster (Homarus americanus) • Eastern oyster (Crassostrvea virginica) • Blue mussel (Mytilus edulis) • Boston/longfin squid (loligo pealeii) • Clams (Mercenaria spp.)

PRESERVED/PREPARED SEAFOOD

• Jonah crab (Cancer borealis)

• Aquaculture is a growing industry in the Northeast,

• Rock crab (Cancer irroratus)

where a variety of molluscan shellfish and finfish species

• Sea scallop (Placopecten magellanicus)

are raised in coastal estuaries and in land-based closed circulatory systems. With a long history and tradition

• Shortfin/ilex squid (Illex illecebrosus)

of sustainable fishery management, the U.S. fisheries

PROCESSED/PREPARED DAIRY PRODUCTS

management system is well respected and considered

•T he Midwest and Northeast U.S.A. are exceptionally

one of the best worldwide.

well-known for outstanding cheeses. Skilled cheesemakers produce traditional classics like Cheddar,

• Major Fisheries of the Northeast Region:

Colby, and Monterey Jack and an incredible variety of

– Finfish:

artisanal, specialty, and farmstead cheeses made in

• Black Sea Bass (Centropristis striata) • Dogfish (Squalus acanthias)

small batches from farm-fresh cow, goat, or sheep milk.

• Monkfish (Lophius americanus)

•S elect regional dairy products include cheese, cheese

• Ocean Perch/Acadian Redfish (Sebastes fasciatus)

sauce, cream cheese, cheese spreads, dairy ingredients,

• Skate (Bathyraja or Raja spp.) FEBRUARY 2024

ice cream, yogurt, sherbet, milk powders, and kefir. 8

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Based on Top U.S. Processed Foods Exported to Nigeria in 2022 ALCOHOLIC BEVERAGES • Wine: The Midwest and Northeast U.S.A. are home to several award-winning wine-producing regions. The mainly family-owned boutique wineries offer a variety of traditional classics and distinctive local specialties. The regions also produce several styles of wine, including sparkling, ice, and fruit wines made from blueberries, blackberries, raspberries, cherries, and cranberries. • Beer: The Midwest and Northeast regions are known for their beer, including many small breweries that

FOOD PREPARATIONS & INGREDIENTS

produce a variety of craft-style beers combining the

• This category, in terms of the USDA GATS categorization,

best of old-world traditions with distinctive American

includes drink mixes, including cocktail mix, coffee

ingredients. Popular styles include traditional pilsner,

creamer, and fortified fruit juices. It also includes whipped

Indian and American pale ale, brown and amber ales,

cream and toppings, sugar-free candy, food coloring and

and wheat beer.

flavoring, roasted malt, protein concentrates, processed sugars, including colored sugar, and even cough drops. Mainly, anything that goes into or on a product, including mixes and doughs, includes everything frozen, and everything frozen falls under this category. • One of the top three categories of exports for the Midwest and Northeast regions over the past three years. • Major Food Ingredient Sectors: – Dairy-based Ingredients • Casein • Lactose • Milk and cheese powders • Whey and whey products – Grain-based ingredients • Bran and Germ • Fiber • Flakes • Flours and baking mixes • Starches • Syrups and Sweeteners – Soy-based ingredients • Soy lecithin • Soy protein products (flours, grits, concentrates) • Soybean Oil

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Commodity Trends Luxury Pet Food – Recession Resistant

Amid global economic fluctuations, one market that seems to be remaining notably stable is luxury pet food. Unlike other consumer sectors, the demand for premium pet products tends to withstand economic downturns, with any shifts being marginal and confined primarily to non-essential items such as pet toys. Essential pet products, particularly those related to nutrition and hygiene, experience a sustained demand, as pet owners are generally reluctant to compromise on the well-being of their animals. This sentiment is driven by the emotional investment individuals have in their pets, which tends to intensify during periods of economic hardship, making purchasing decisions more emotionally driven than economically calculated. A significant contributor to the robustness of the luxury pet food market is the spending behavior of younger pet owners, notably millennials. This demographic demonstrates a greater willingness to invest in premium pet products, creating growth opportunities for industry giants like Nestle, Colgate-Palmolive, and General Mills, who have experienced accelerated growth in the premium pet categories despite inflation concerns. In November 2022, Morgan Stanley forecasted an annual

ownership during the pandemic. Approximately one-third of recent pet adopters fall within the 18-34 age bracket, displaying a propensity to spend more on pet-related expenditures, including food, treats, and overall care. Demographic shifts further underline the resilience of the luxury pet food market. The decline in the U.S. birth rate contrasts with a substantial increase in the dog population, with the American Veterinary Medical Association (AVMA) reporting a nearly 9% growth from 2016 to 2020. This discrepancy reinforces the changing dynamics of pet ownership. The AVMA identifies a noteworthy segment of pet owners who treat their animals particularly well. These consumers are generally under 35 or between 45 and 54, have no kids or spouses, and are generally earning annual incomes of more than $200,000 and contribute significantly to the luxury pet food market. Impressively, 96% of this demographic considers their pets as family members, with 86% celebrating their pets' birthdays and almost 20% including their pets in their wills. For pet food exporters, this resilience in the face of economic uncertainties presents an opportunity to tap into a strong and expanding market. As pet owners continue to prioritize the well-being of their furry companions, the outlook for luxury pet food exports seems set to keep growing.

growth rate of 8% in the pet industry through 2030, attributing this optimistic outlook to the surge in pet

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Navigating the Seafood Industry: From Growth to Sustainability

In the realm of seafood exports, sustainability is

billion people depend on fish as their primary protein

Sustainable seafood, defined by Seafood Watch as coming

The World Health Organization reports that over a

source. Recent advancements in shipping, cold chain, and distribution channels are amplifying fish production

the linchpin for enduring success. Recent FAO data emphasizes the critical state of global fish stocks—60% are fully fished or right at the level of sustainability, 33% are overfished, and 7% are underfished. It's essential for exporters to navigate this landscape strategically. “from fisheries or aquaculture operations that minimize harmful environmental impacts, assure good and fair

and consumption globally. The surge in demand for

working conditions, and support livelihoods and economic

protein-rich diets, coupled with the recognized health

benefits through the entire supply chain.”

benefits of omega-3 fatty acids, propels the industry’s growth. Government support and enhanced transport infrastructure on the international stage underscore the pivotal role of sustainable fishing practices in global trade. Export-oriented aquaculture emerges as a key driver of fish production with initiatives like Indonesia’s PROTEKAN program fortifying fisheries exports and India’s Marine Products Export Development Authority (MPEDA)

STRATEGIC SUSTAINABILITY GUIDE FOR U.S. FOOD EXPORTERS As exporters, you wield substantial influence over global consumer choices. Here are strategic ways to enhance the sustainability profile of your seafood exports: Highlight U.S. Leadership: Emphasize the United States’ commitment to sustainably managed fisheries. Leverage the reputation of leading nations like New Zealand,

developing a GPS-based database for traceability and

Iceland, Norway, and Russia.

quality control in aquaculture farms. Trade agreements

Certifications for Global Assurance: Ensure products

favoring seafood products, exemplified by the 2020

carry reputable certifications, such as the Marine

EU-Vietnam deals, further stimulate global fish exports.

Stewardship Council (MSC)’s Blue Fish Label. Facilitate

According to the International Trade Center (ITC) Trademap, global live fish exports surged by 24.9% from

consumer understanding through partnerships with programs like Seafood Watch and FishWatch.

$1.80 billion in 2020 to USD 2.25 billion in 2021, with

Engage in Transparent Communication: Communicate

indications pointing towards sustained growth. Improved

sustainability commitments in marketing materials.

quality resulting from export-oriented cultivation is

Address consumer questions about certifications and

expected to fuel global fish demand.

seafood origin.

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Upcoming Activities

Global Food

Marketer

™

FOOD EXPORT ASSOCIATION OF THE MIDWEST USA AND FOOD EXPORT USA –NORTHEAST

®

®

We are non-profit organizations comprised of state agricultural promotion agencies that use federal, state, and industry resources to promote the export of Midwestern and Northeastern food and agricultural products. Food Export–Midwest and Food Export–Northeast administer many services through Market Access Program (MAP) funding from the Foreign Agricultural Service (FAS) of the USDA. Brendan Wilson Chief Executive Officer/Executive Director Michelle Rogowski Chief Operating Officer/Deputy Director Laura England Chief Communications Officer/Deputy Director Teresa Miller Chief Program & Partnership Officer Gina Donio Marketing & Communications Manager FOOD EXPORT ASSOCIATION OF THE MIDWEST (FOOD EXPORT–MIDWEST) 309 W. Washington St., Suite 600 Chicago, IL 60606 USA tel: 312.334.9200 • www.foodexport.org FOOD EXPORT USA-NORTHEAST (FOOD EXPORT–NORTHEAST) One Penn Center, 1617 JFK Blvd. , Suite 420 Philadelphia, PA 19103 USA tel: 215.829.9111 • www.foodexport.org

Training Webinars

Stay informed with our insightful webinars for the latest market updates and trade strategies. Watch for announcements of upcoming webinars and browse our library of past webinars at www.foodexport.org.

Events & Buyers’ Missions

Look for Food Export teams at these upcoming global events, where we connect with industry leaders and showcase international trade opportunities.

Food Export–Midwest and Food Export–Northeast administer many services through Market Access Program (MAP) funding from the Foreign Agricultural Service (FAS) of the USDA. Persons with disabilities who require reasonable accommodations or alternate means of communication of program information should contact us. Additionally, program information may be made available in languages other than English. Food Export–Midwest and Food Export–Northeast prohibit discrimination in all their programs and activities on the basis of race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, familial/parental status, income derived from a public assistance program, political beliefs, reprisal or retaliation for prior civil rights activity. To file a program discrimination complaint, go to https:// www.ascr.usda.gov/filing-program-discrimination-complaint-usda-customer. Food Export–Midwest and Food Export–Northeast are equal opportunity employers and providers. Food Export–Midwest and Food Export–Northeast do not tolerate fraud and are vigilant in preventing fraud in any of their programs. Food Export–Midwest and Food Export–Northeast reserve the sole right to accept or deny companies into their programs. For complete participation policies and our code of ethics, visit: www. foodexport.org/termsandconditions.

Global Food Marketer© is published by Food Export–Midwest and Food Export–Northeast.

‣ Frozen Food Buyers Mission San Diego, CA | Feb 24-25 ‣ Seafood Expo North America Boston, MA | March 9 ‣ Natural Products Expo West Anaheim, CA | March 13-14 ‣ Global Pet Expo Orlando, FL | March 19 ‣ FHA – Food & Beverage Singapore, Singapore | April 23-26 ‣ Global Seafood Expo Barcelona, Spain | April 23-25 ‣ Pet Food Ingredients Forum Kansas City, KS | April 29

Food Export–Midwest & Food Export–Northeast

If you are a buyer or a seller interested in participating in any of our in-person

Food Export–Midwest & Food Export–Northeast foodexportsusa

events and learning more, please contact info@foodexport.org. FEBRUARY 2024

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