Market Trend: The food Market Among Adults in Australia
Young adults in Australia, particularly around 30 years, are the largest consumers of foods prepared outside the home. The research focuses on what influences food choices of the demographic that prefers eating out instead of cooking. Unlike their predecessors who preferred healthy eating, obesity-related issues have risen tremendously in Australia among young adults. Moreover, the young people in Australia continually make wrong dietary choices resulting in both short-term and long-term diet-related complications. Estimated 40 multinational companies have undergone rapid expansion. The primary purpose of this study is to assist individuals in planning to enter the food industry to offer healthier alternatives using microeconomics concepts.
The primary demand driver for both healthy and fast foods in the industry is the population. The rising population has resulted in the demand for food demand and supply. The relationship between the need for fast food comes from busy single schedules of young adults who view cooking healthy meals at home as a tedious task (McConnell, Brue & Flynn, 2018). On the other hand, the demand for healthier foods has continually risen due to the global debate relating to both the long and short-term effects of relying on fast foods.
Several young adults prefer eating fast foods because they are cheaper and more affordable. A considerable proportion of the population cannot afford to eat healthy meals daily. Consequently, the price elasticity plays a pivotal role in determining food choices of young adults in Australia. An increase in the price of alternative healthy meals results in rising in demand for fast foods.
Tastes and Preference
Individual’s preferences and tastes are the common motivators for making food choices (McConnell, Brue & Flynn, 2018). Although the influence of salty and sweet flavored food remains innate, sometimes-choice influence comes from early exposure to food. Studies on the impact of pregnant women’s food choices on infants’ preferences can assist in analyzing the food choices among young people.
Changes in Income and Food prices on demand
Shifts that occur in supply, as well as changes in demand, will affect food prices (McConnell, Brue & Flynn, 2018). A precise understanding of the demand for foods and the ability to predict supply shits provides the basis for understanding food market predictions for the future. In essence, rising incomes and populations will result in demand for foods, particularly healthy meals. Moreover, an increase in income will lead to shifts from staple and fast foods to more protein-rich commodities. Goods with a price elasticity –1 are those that have no alternatives or substitutes. However, that is not the case for low-income countries Marketing Strategies Food discounts and pricing plays a crucial role in food choices. The fast restaurants thrive in economies of scale and offer food at lower prices. However, healthy food retailers and restaurants can acquire more customers by providing food discounts and ready meals. The young generations are not patient and prefer ready foods, which healthiest products do not offer. Consequently, health food providers should strive to implement methods of ensuring that they can prepare or preserve healthy foods to attract the young generation of customers. Food endorsements by health organizations can also assist in marketing strategies products.
Economic Downturns and Upturns
Fast foods are famous because of the incredibly cheap price. In situations where incomes decrease or unemployment rate increases, the demand for fast food increases. On the contrary, high-income results in a decrease in demand for fast foods because individuals can work in a restaurant and order a healthy meal.
Food choices have a direct relationship with microeconomics variables such as level of income, population, economic downturns and upturns, taste and preference. The adoption of healthy foods relies on availability of income and market strategies of industry players. Fast foods have overtaken health alternatives because of its lower prices, mergers and marketing strategies.
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