Sectors & markets

SIAL Paris: Urbanisation and Rising Food Demand Across Emerging Markets

In transition economies, urbanisation and food demand are now moving hand in hand. The growth of cities is not only creating more consumers; it is accelerating modern retail, ready-to-eat products, supply chains, and new distribution channels capable of structuring global food demand.

According to an analysis published by SIAL, the growing concentration of populations in urban areas is shifting the centre of gravity of growth away from mature markets toward developing economies across Asia, Africa, and Latin America. According to United Nations data, 55% of the world's population lived in urban areas in 2018, a share projected to reach 68% by 2050. Meanwhile, the World Bank notes that cities already generate more than 80% of global GDP.

The FAO notes that urbanisation is transforming agri-food systems beyond cities themselves by strengthening the links between rural production, peri-urban areas, wholesale markets, modern distribution, and access to healthy food. For businesses across the food sector, cities are not simply creating additional demand—they are reshaping the entire value chain.

Asia: Convenience and Time-Saving Formats Fuel Growth

Across Asia's major metropolitan areas, demographic changes—including rising female labour force participation and longer commuting times—are driving strong demand for convenient, time-saving food solutions.

In India, where urbanisation is reshaping consumer habits, the ready-to-eat meals market reached USD 6.2 billion in 2025 and is projected by IMARC Group to reach USD 12.3 billion by 2034. Exporters and food manufacturers are increasingly targeting high-growth segments such as single-portion meals, shelf-stable cooking bases, sauces, and fortified snacks.

Southeast Asia is following a similar trajectory. In Indonesia, the region's largest market with a population of 282 million, rising urban incomes are driving demand for dairy products, wheat, meat, fresh produce, and health-oriented convenience foods, according to the USDA Foreign Agricultural Service.

Africa: Expanding Distribution Networks and Strengthening Local Processing Capacity

Across Africa, urbanisation is fostering the expansion of modern retail channels while accelerating investment in regional food processing capacity.

In North Africa, growing urban populations are reshaping the food retail landscape. Algeria's food retail market was valued at USD 37.5 billion by the USDA Foreign Agricultural Service, while younger consumers are increasingly purchasing packaged snacks and ready-made meals. In Egypt, the expansion of major urban centres is driving demand for foodservice, digital ordering platforms, specialised packaging solutions, and cold chain infrastructure.

In West Africa, this momentum is supported by strategic investments. Valued at approximately USD 53.87 billion in 2024, Nigeria's food and beverage market is projected by Market Research Store to reach USD 84.83 billion by 2032. In this young and highly urbanised country, food security depends as much on production as on the ability to process, store, and distribute food.

Nearby, Africa Global Logistics plans to invest more than EUR 60 million in inland logistics infrastructure to strengthen Abidjan, Côte d'Ivoire, as a regional trade hub. This logistics infrastructure supports the movement of processed products, production inputs, and exports to neighbouring countries. Over the same period, Côte d'Ivoire's nominal cashew processing capacity increased from 77,384 tonnes in 2014 to 350,000 tonnes in 2023.

More broadly, Ghana's agricultural sector is projected by Mordor Intelligence to reach USD 10.21 billion in 2026, while urban consumers in Senegal are increasing their consumption of dairy products, poultry, cereals, and higher-value imported food products.

Trade Reform and Industrial Capacity

Across Latin America and Europe, emerging and transition economies are relying on regulatory reform and industrial capacity to meet the changing demands of increasingly urban consumers.

In Argentina, the government introduced measures in January 2025 to deregulate agri-food imports and exports, aiming to reduce administrative burdens, lower transaction costs, and facilitate international trade.

In Europe, Poland has established itself as a major agri-food manufacturing hub, employing nearly 475,000 people in the food and beverage industry. This production capacity enables the country to supply modern food retail networks across Europe with large volumes and consistent quality.

Reshaping Global Food Distribution Networks

The growing concentration of consumers in urban areas is transforming the way food is produced, processed, packaged, and distributed. Modern retail formats, e-commerce platforms, and foodservice channels are steadily replacing traditional distribution models.

Urbanisation is also encouraging innovation, with younger urban consumers adopting snacks, convenient beverages, single-portion meals, and delivered food formats more rapidly than previous generations. For international producers, suppliers, and exporters, meeting urban market demands requires adapting product lines to fast-paced city lifestyles by emphasizing shelf stability, convenient sizing, and integrated cold chain logistics.

Source : SIAL Paris