Big shifts underway in U.S. food industry

When a major component of the U.S. economy undergoes a transformational shift, it’s hard to ignore. Portfolio Manager Barbara Miller offers her perspective on the fast-changing U.S. food industry and what investors should know.

Executive Summary

  • A major factor in the U.S. food industry for both grocery retailers and food producers is growing competition. On the retail front, big box stores, discount shops and international chains are challenging supermarkets for a share of the shopper’s wallet. Meanwhile, food producers face competition from a proliferation of emerging brands—large and small.

  • From processing and distribution to marketing and shopper engagement, technology is impacting every aspect of the food industry. Notably, it’s making it easier for new brands to take away market share in a heavily saturated marketplace.

  • Consumers’ evolving preferences for fresh, healthy, convenient and affordable food is placing big demands on a low-margin business.

  • In a fast-changing, highly competitive industry, it takes deep research and industry knowledge to uncover investment opportunities capable of sustainable growth.

  • Keep reading >

OnPoint Industry Insights

Federated OnPoint is a series of industry and investment insights that provide perspective on timely issues affecting the markets.

See all topics >