The food sector constitutes about one-fifth of the global economy and is the world's largest source of income and employment. The livelihoods of most of the world’s poor and vulnerable people depend on it. Despite these critical contributions, the ways in which food markets are structured and operate have negative impacts. Much of the rural population employed within the agri-food sector remains poor and food- and nutrition-insecure, and evidence suggests that at least 3 billion people globally, including both the rural and urban poor, cannot afford nutritious diets. These populations have been unable to benefit from expanding food markets. More food processing has brought food diversity and more convenience to consumers, but also worrisome increases in the consumption of unhealthy foods. The sector’s over- and misuse of natural resources has also degraded the environment and exacerbated the climate crisis and biodiversity loss. Many of these failures are rooted in markets hindered by multiple deficiencies in infrastructure, equipment, and standards; incentives that do not foster sustainability, nutrition, or inclusiveness; concentrated market power; and weak value-chain integration. The key challenge is how to address these multiple constraints and develop value chains that efficiently deliver more nutritious and safe foods to retailers and consumers, while generating decent livelihoods for farmers and food sector workers, including women and vulnerable groups, and reducing the carbon footprint of agriculture. This is a major challenge, but there are also enormous opportunities. Food markets and value chains are undergoing rapid changes, including in developing countries, as urbanization accelerates, technologies proliferate, policies aim to address market failures, and dietary patterns shift. New products, modern distribution systems, and digital technologies continue to transform supply chains.
Keywords: Agriculture, Marketing, Food, System, Transformation