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FSHN2060 Food Marketing And Consumer Behaviour

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FSHN2060 Food Marketing And Consumer Behaviour

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FSHN2060 Food Marketing And Consumer Behaviour

0 Download6 Pages / 1,370 Words

Course Code: FSHN2060
University: The University Of Newcastle is not sponsored or endorsed by this college or university

Country: Australia

The purpose of this task is for you to analyse and interpret data to assess the challenges and opportunities facing an emerging sector of the food industry (e.g. plant-based foods, alternative proteins, “free-from” foods, functional foods, etc.).Written report.Identification and analysis of challenges and opportunitiesQuality and relevance of researchCommunication and presentation of report

Food is the most important thing to sustain and the industry that combines the different business related to food and operates on a global basis with the various complex processes is termed as Food industry. In the present world, most of the famous food items have animal-based ingredients which leads to the emergence of the alternative variations in the food industry. The alternative food industry comprises of the foods that are plant-based, free from animal-derived ingredients, functional food with alternative proteins (Goodman, DuPuis & Goodman, 2012). However, due to the less popularity of these kind of items, these industries face a number of problems which will be assessed in the following report. The following paragraphs will highlight the industry, the five forces of the industries along with the opportunities and threats in the place.
The food industry comprising of the alternate food options is on a steady rise with more number of people coming into the umbrella of Veganism and Vegetarianism on a global basis. The alternate food industry has noted upto 600% growth from the year 2014-2017 only in USA along with notable other increase in New Zealand, Israel and other countries (Nestle, 2013). In addition, the growth of alternate food consumer in UK has increased upto 350% in comparison to the previous decade making the growth of the alternate food industry one of the major rise in the modern era.
The size of the alternative food industry has increased from 7.6% from 2016 to 2024 on a global scale due to the increase in number of alternate food consumers especially in the Chinese, USA, Indian and UK markets.
The profit of 17.2% is there in the alternative food industry on a global circuit with an estimate of $5 million profit in the recent years. The profit is increasing at a higher rate inspite of the steep competition and challenges faced.
In Figure 1, it is being seen that the alternate food industry chain is increasing in every country with the highest being in Asia Pacific and lowest being in Europe. People are more attracted towards alternate food in the modern times.
In Figure 2, it is being shown that in spite of the increase in alternate food industry, the amount of animal consumption is high and the chart shows the amount of different animals that are being consumed.
In Figure 3, it is being shown that the demand for the normal animal-based food is ever increasing and there is no potential decline in the same causing a threat to the alternate food industry. The demand for the food derived from animals and their direct meat is strong enough to give the alternate food industry a stake of confusion about their sustenance and credibility.
The principle barriers of the alternate food industry is the steep and ever-lasting competition from the mainstream food industry comprising of the animal-based and normal food products available in the global market (Belasco, 2014). In addition, the inclination of the majority of people towards that market also pose a potential barrier.
The driving agent of this food industry is the increase in number of people getting inclined for this type of food industry. The continuous grow in the demand of people opting for alternative food like plant- based protein and functional food is the biggest motivator.
There is a huge amount of competitive rivalry between the normal food industry and the alternative food industry due to the division in the customer base by the later. Previously, the customers had no other choice which created a monopoly for the normal food industry but now, due to the availability of the second option, many customers are getting distracted, creating a competitive rivalry. Even there is competitive rivalry among the various brands of alternative food industry due customer attraction.
There are a huge number of substitutes for the alternate food industry, primary being the normal food that has been consumed since decades (Bigliardi & Galati, 2013). The customers are more prone to buying cheaper and tastier food items which is sometimes not given by the industry stated making the industry prone to substitution at any time.
There are a number of barriers for the entry of these firms into the market due to the less customer base, though growing. In addition, the power of the normal food brands make the alternative industry difficult to sustain. Therefore not a number of new brands are interested to enter the market and also the normal food firms prevent the entry of the firms.
The alternate food industry has limited supplier base as they proclaim their products from only cruelty-free and plant-based sources (Spaargaren, Oosterveer & Loeber, 2013). Therefore, their power of supplier of raw materials is relatively high making their bargaining power low in terms. This makes the problems of the alternative food industry higher.
The customer of the alternative food industry has a comparatively higher bargaining power as they can choose between the normal food industry and the alternate food industry.
Opportunities and Threats
The opportunities of the alternative food industry are as follows –

People in the modern times are more concerned about their health and know the bad effects of the consumption of animal based products which make the success of alternative food industry undeniable.
Veganism and vegetarianism have become a trend in the modern world that have an increasing number of people interested.

The threats of the alternative food industry are as follows –

The potential threat are the normal food industry that already has customer on a huge basis.
Another threat is the fast food chain that are operating and attracting the customers on a huge base.

In conclusion, it can be said that though the alternate food industry is growing, there is a potential threat and challenge that is being faced by the same due to the presence of the normal food industry and animal-derived items. The alternate food industry is on a rise leading with more customer interested in the same but at the same time facing a number of problems and drawbacks due to the potential threat of the commercial based food industry. The challenges can be solved with time and required strategies.

One of the major recommendation is to make people aware about the benefits of the alternative food and give them reason to try it out.
Secondly, to advertise and market alternate food as being tasty and nutritious to attract customers.
Thirdly, to make the people know about the cruelty-process and other killings that are being involved in the normal industry.
To have more items included in the alternate sector to attract the people who love various foods.
To find an alternative for meat and dairy products in vegan and plant-based items
To give knowledge and if required, free sample to the customers to make them their potential and loyal customers.
To market their products in both online and offline manner to make the customers aware of the existence and efficacy.
To collaborate with the vegan and vegetarian agencies to have more customer base.

Bastian, B., Loughnan, S., Haslam, N., & Radke, H. R. (2012). Don’t mind meat? The denial of mind to animals used for human consumption. Personality and Social Psychology Bulletin, 38(2), 247-256.
Belasco, W. J. (2014). Appetite for change: How the counterculture took on the food industry. Cornell University Press.
Bigliardi, B., & Galati, F. (2013). Innovation trends in the food industry: the case of functional foods. Trends in Food Science & Technology, 31(2), 118-129.
Boland, M. J., Rae, A. N., Vereijken, J. M., Meuwissen, M. P., Fischer, A. R., van Boekel, M. A., … & Hendriks, W. H. (2013). The future supply of animal-derived protein for human consumption. Trends in Food Science & Technology, 29(1), 62-73.
Goodman, D., DuPuis, E. M., & Goodman, M. K. (2012). Alternative food networks: Knowledge, practice, and politics. Routledge.
Nestle, M. (2013). Food politics: How the food industry influences nutrition and health (Vol. 3). Univ of California Press.
Share of people who follow a vegan diet worldwide as of 2016, r. (2018). Vegan diet followers worldwide by region, 2016 | Statistic. Retrieved from
Spaargaren, G., Oosterveer, P., & Loeber, A. (Eds.). (2013). Food practices in transition: changing food consumption, retail and production in the age of reflexive modernity. Routledge.

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