Various types of food market analysis include assessments of global food commodity markets, wholesale food companies, and retail grocers. A food market analysis typically examines various issues that may impact the price and availability of food within a specific marketplace. Restaurants and quick-serve restaurant chains collectively comprise a sizable food market. Other segments within food market research include specialty foods and frozen foods. Pet food products and livestock feed are two additional areas that may fall within the scope of a food market assessment.
A global food market analysis may take a look at growers, distribution channels, and both short and long range weather predictions, usually noting areas of weakness or strength. The ramifications of shortages, or an overabundance of a particular commodity, like rice for example, may have far-reaching impacts around the globe. Since many companies make large purchases of commodities for food manufacturers, these enterprises often conduct an industry analysis. In reviewing the analysis, a company may decide to switch to a different staple ingredient, if faced with a higher risk of inflationary pressures. Supply chain stability is often a key aspect of analyzing the global food market, and events like floods or droughts can have a significant impact on commodity supplies.
Wholesalers comprise the next link in the food-market chain. In a wholesale food market analysis, major food manufacturers may undergo intense scrutiny by various analysts, including stock analysts, competitors, and large restaurant chains that buy huge quantities of bulk ingredients. A food market analysis for the wholesale market may include detailed information on the largest businesses that operate in this sector. For example, if a major fast food restaurant chain adds a new menu item, such as a premium fruit drink that uses food pulp from a particular fruit, that information would likely be noted in a food market analysis. This might happen due to the large increase in demand that would suddenly ensue, due to just one company's order.
At the retail level, analysts typically scrutinize several different sectors in food markets. Retail food market analysis includes assessments of grocers, restaurants, and specialty food items. Some grocery food analysts break out these specialty foods into distinct categories like frozen foods, beverages, or organic foods. A specialty food market analyst may take an assessment of the size and projected growth of the organic foods segment, for example.
Stock analysts, environmentalists, and government officials may watch pet and livestock food markets. The latter often receives the scrutiny that typically accompanies products within a food chain that are destined for eventual human consumption. Those in the agricultural industry may review recent reports on livestock feed markets, which are often linked to the commodities market. Food market analyses provide capital markets with predictive information, which then influences the prices of food, livestock and pet feed.
