Population growth and urbanization
- The global population is growing at ~1.7% per annum and is forecast to reach 8 billion by the year 2025 (currently ~7 billion)
- By the year 2050, ~70% of people will live in cities
- The urban population typically consumes more calories through higher value add food (e.g., animal proteins, dairy products)
Income growth
- In emerging markets, income growth is typically higher than population growth
- Consequently, higher value add food is consumed (e.g., animal proteins, dairy products). The production of 1 calory of food from animal origin requires up to 12 plant-based calories. The trend towards more meat consumption in emerging markets leads to a strong demand for animal feed
Climate change
- Growing concerns towards fossil fuels as well as the intended “energy shift” in many Western countries will lead to a growing (political) demand for agricultural products, particularly for the biofuels industry
- Biofuels may also be produced from organic waste products (e.g., sugar cane residuals)