Globalization In The Food Industry And The Convenience Food Business Essay Business Essay

Abstract

On this assignment the author will undertake as a main subject the globalization in the food industry and the convenience food as a new food trend in the market. Furthermore the author will examine all the factors required to investigate in order to obtain a spherical estimation on this subject.

Key Words:

Globalization, Food Industry, Food trends, Convenience food

Introduction

Foods production, transformation, sharing and consumption have important environmental repercussions (e.g. high demand of energy and materials, emissions, endangerment and reduction of biodiversity, increasing need of agricultural extent), as well as serious communal, financial and sanitary repercussions (Jensen, H.H., 2006). From the viewpoint of viability and same the consuming behaviour of persons that lives in developed countries it is questioning because the increasing need of energy, agricultural ground and other resources. Also, in the all world the tendency to the Western behaviour consumption of foods can be observed, the included all repercussions for the environment and the health. The engagement too much and too much greasy foods, less natural activity and the obesity continuously more are increased in nowadays season. These illnesses limit the quality of life (Griffith, C.J., 1995).

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Moreover, the technological changes at length of chain of supply of foods, the structural changes and growth in wide scale the retail trade, as well as the extension of trade in the all world contributed in a rapidly altered market for the products of diet. Consequently, the globalisation of international markets has led to important increase of variety of products that is sold in the consumers, thing that causes high rivalry between the enterprises and the regions. For the consumers this enormous variety of products it involves a multiplicity of choices with regard to the choice of foods, ways of preparation, the places etc. From a side this allows the individualisation of behaviour of consumption behaviour (Duhan, D. F., et. al., 1998).

The technological developments in production, in distribution and in consumption.

Τechnological advances are also transported in the retail food. Technological developments have created a new commercial reality that is the emergence of global markets for standard consumer products on a scale that previously was completely unthinkable. Revolutionary innovations are realised so much in the production process what in the process of distribution of goods with final recipients the continuously wider consuming public. The limitations of distance are also eliminated (transport, communications). The growth of development of transport at all levels (land, sea, air) involved an impressive reduction in cost and time of freight, consolidated isolated local markets and created a single national and global markets for products.

Cheaper and faster transportation have allowed in a lot of enterprises to dramatically increase the geographical scope of their products. Also the integration of communications systems has been a catalyst for the territorial expansion of the business (Skordilis, 2004).

The development of advanced forms of automation in factories accelerated the production process. The production, the packing and distribution of products are realised with most rapid processes and forms.

Different types of stores owing to globalization.

Retailing has undergone significant changes in the world, especially during the last two decades, having to radically change the size, organization and geographic presence. The recent development and emergence of new types of stores, the increasing prevalence of global chains, the development of large commercial premises outside the city and the emergence of new consumption patterns, were perhaps the most important factors that brought about the change in the field of food crisis worldwide. The recent emergence of new types of businesses such as convenience stores due mainly in socio-economic factors such as changes in consumer demand (Kafkalas 1999, pp 80).

Convenience Stores

The convenience stores have a very innovative format stores in the global consumer market. These shops include small units sited at the neighborhood level with expanded hours of operation are usually formed from early morning until late at night. The convenience stores operated by lack of time to consumers by addressing their immediate needs by selling convenience food.

The industry follows tendencies of consumption

The trends vary depending on the demographic and psychographic characteristics of consumers, but in general both the current pace of life and the intense debate that exists on what constitutes a “diet”, have led consumers to easily search , while healthy and tasty solutions associated with either a silhouette or health. This certainly has resulted in the emergence of product categories that until substantially did not exist in the market, as are the categories of organic and functional foods. These categories, although it is still relatively small in size, growing rapidly, leaving behind a growth of conventional categories, which previously grew significantly on an annual basis (Self Service 2005).

According to Self Service (2005) recent years, it becomes increasingly apparent trend towards more niche products, and therefore functional foods are becoming increasingly popular. At the same time, consumers are increasingly demanding the issue of quality of products they consume. Also, a feature of the season is to reduce the power consumption of the household, and the changes it has undergone its structure. Today the term “household” does not refer only to the four-member household and family over, but the three-member or single parent family, couple, as well as a bachelor. The industry calculates the above when it comes to creating new products.

Although the modern lifestyle, the fast and the gnawing free time does not permit long time in the kitchen preparing the meal. Moreover, the modern lifestyle is turning people to search for more convenient foods, which require less time to prepare lunch. For example, the sauces: Older consumers opt for the tomato paste, add the remaining ingredients and then cook. Now he wants prepared sauce (Self Service 2005).

As Self Service (2005) stated consumers today are turning to Convenience Foods, albeit at rates lower than the rest of the developed world. They combine the speed in food preparation to maintain quality and nutritional value.

According to Sloan (1999), cooking at home is considered by most of people as a time waste activity. In order to cover the needs of consumers wishes for time relief food manufacturers precede the production of convenience food.

Current trends in consumer diet behaviour in developed countries

Trends in consumer diet behaviour can be classified by trends regarding food product categories (convenience food, calorie-reduced and dietary food, functional food, novel food), trends regarding sustainable food products (organic food, ethic food, regional food), trends regarding alternative diets (vegetarianism, whole food, raw food) and trends regarding the out-of-home-consumption (fast food, slow food, ethnic food). In the following the main trends of these categories (see brackets) are briefly presented (Shiu, CC., et al. 2004).

Trends regarding food product categories

Convenience foods are presented as ready, industrially-made foods to shorten and they facilitate the moment of preparation. The increasing demand for convenience foods of facility is explained, on one side, with the saving of time and work, on the other hand with the declining value that is attributed in the cooking. The continuously increasing variety of products contributes also in the success of these sampled meals. (Warde A. 1999).

Culture and Consumers

According to Jean, C.U., and Julie, A.L., (2009) culture affects consumer behaviour to such an extent that the difference in the values corresponding to different consumption patterns. Furthermore Jean, C.U., and Julie, A.L., (2009) stated that Culture affects consumer expectations for quality of service.

Culture is recognized as a factor influencing the perceptions of quality as well as the satisfaction and commitment to consumers.

Definition of convenience food

There are different definitions of the term convenience that be revealed in the literature. According to Alistair W.(2002), convenience goods are goods that a person can buy them normally and directly and make a minimum of effort in comparing and buying. Another definition that (Alexy. U, et. al 2007) stated is that convenience food is the products that require little or no knowledgeable decision making. Convenience food also was defined as all prepared spicy goods categorising the sweet convenience food in another group because of the heterogeneity that consists. Convenience food consumed as communal feeding by schools, in day-care centres, etc, instead of frozen or canned pure vegetables, meat or fish without any other ingredients.

From the above definitions the author concludes that there is not specific definition of the convenience food and should be consider as a multi-dimensional creation.

Convenience as a trend in the UK market

One of the important trends in the food market of Britain is the convenience. Brody, AL. and Lord, JB., (2000) stated that consumer wants for convenience food increased in current years. As Euro food (1999) pointed, sales of ready- meals between 1995 and 1999 in the UK raised from £892 million to £1,061.8 million, indicating an increase of 15 per cent. The average sales of Ready-to-eat food products had almost two times increased comparing to the entire gamut of food.

Advantages of convenience food

Time saving. Convenience food significantly reduces the time it takes to prepare meals from scratch using raw ingredients.

Variety. Due to packaging techniques such as canning and freezing, foods are available at all times of the year.

Convenience food has a long shelf life.

Labour saving. Labour and bulk reductions in acquisition and logistic activities.

Kitchen imputes. Downsizing of kitchen imputes such as time, skills, energy, labour and equipment.

Storage. Easy of storage and renewal.

Food safety. Packaging and processing techniques, such as canning, freezing and irradiation, reduce spoilage and the presence of bacteria in the consumed products.

Disadvantages of convenience food

Typically they are manufactured by almost inedible agricultural products.

They are typically high in dietary fat, sodium and kilojoules content.

They are low in fruit and vegetables, calcium and iron.

The reduced time cost and nutritional contend associated with this food is specifically blamed for obesity.

Sometimes genetically modified foods are used.

Sometimes an irradiation process is used.

Convenience food is normally more expensive than unprocessed food.

Jabs and Devine (2006).

The above research shows that eating more convenience foods, prepared meals from a lower nutritional value, fewer family meals made from scratch using raw materials at home and eating more meals outside home have negative effects on health.

Consumer’s Beliefs about Convenience Food

Do Boer et. al (2003) identified that the rudiments of saving time when the consumers buy convenience food and the aspect of cost considering convenience food are two potential determinants for the purchase of convenience food.

Conclusion

The market and the food industry have made great strides due to globalization. The food market is now facing new challenges and opportunities, including increasing competition and the evolution of new technologies and business models help shape a new culture with new food trends. Consumers are more discerning and better informed about the market and products. Changes in consumption and consumer purchasing behaviour are part of wider economic and social change.

Convenience food trend is not only almost ubiquitous in the food market, but it is also evident in many other sectors, non-food items such as telecommunications, consumer electronics, resorts and health clubs. These trends are so important to the global market that affects what the general public it aspires to the consumer market.

The food industry is constantly vigilant in order to create new products that meet the current needs of consumers, while educating their use. The wide variety of new food in many areas of industry confirms the trend of continuous creation of new niche products that appeal to different consumer groups based on their specific needs, needs which define the scientific research, food trends, changes in lifestyle and social standards.

The question is whether the real needs of the consumer are the only incentive to create innovative products. Are companies in the fierce competition to produce new products continuously exceed the real needs, blackmail to create new needs and ultimately lead to a kind of consumer saturation? It is always clear about the terms of the game or whether the consumer is ultimately confused in front of the supermarket shelf, embarrassed by the bombing of messages they received.