Globalization has changed the face of business drastically in the last decade. Food businesses have also had to undergo major changes and upheavals in order to meet the challenges of the newer technologies and emerging markets.

The end of the recession had many thinking that such upheavals might slowly settle down now. But, according to a new white paper by Technomic, retail food brands and major food service businesses are going to face even tougher challenges in the coming decade. Slated to see a $700 billion growth, the food industry will witness more than $2 trillion in annual sales by 2025.

While the figures are heartening, global food businesses and their channels will face myriad changes and upheavals to reach those numbers. As per the report, ethnically diverse consumer needs and their rapidly changing expectations combined with expanding markets will make the path more thorny than rosy.

Businesses not only have to anticipate, identify and respond to these challenges ahead of time, but they also have to leverage emerging technologies to do so. This means constant upward movement to bridge the knowledge gap between their existing resources and what they would need for the future. Expensive and time-consuming as it is, all segments of the food industry from growth to distribution to retail will have to face these changes.

Some of these challenges will come from the various consumer, economic, regulatory and environmental shifts with increased demands for transparency, dealing with increased urbanization as well as new labor models. The report suggested action-oriented points for businesses to follow and work these changes to their favor.

If that can be done, then one is looking at a sea of opportunities, whether it is a big brand or small. Businesses will have to constantly reimagine and reinvent themselves, and reallocate resources across segments to match with the changing needs of the times. In some cases, the entire supply chain may be retooled to meet the consumer and market demands head on.

The shrinking global market and online presence are two palpable reasons for business upheavals in recent times. In the food industry, however, changes are also marked by how healthy or clean the products are. This means brands that can boast of favorable carbon footprints and minimal or zero processing will stand as the winning products by 2025.

Since this is an expensive proposition for traditional retailers like supermarkets and restaurant chains, chances are that they stand to lose more market share than the nontraditional retail channels. The latter will only grow at a 3.5 percent rate as compared to the 5 percent for independent restaurants and small chains. While supermarkets will see less happy growth figures, the fresh prepared food sections in them will see a significant 7.5 percent annual growth.

Many industry leaders are already strategizing around these upcoming seismic shifts and the trends highlighted in the Technomic report. They are taking account of increasing consumer diversity as well as the polarized shifts in age and income, things that are going to mark their future sales. Along with new footprints for urban locations, they are also focusing on major investments in the workforce and resources.

These changes will help them offer consumers optimum value and meaningful, upscale food experiences that are fresh and healthy as well. Goodwill in human resource management will seep into good PR for the brands, along with showcasing their transparency and social responsibility. Technomic urges businesses to read the big data carefully and embrace emerging digital resources to ride these changes well.