A system under pressure
The global food system stands at a breaking point, according to a new report by KPMG titled Reimagining Global Food System Resilience.
The report paints a troubling picture of food production systems strained by climate change, geopolitical instability, economic inequality, and public health challenges.
From rising hunger to environmental degradation, the report finds that the systems designed to feed the world are now contributing to systemic failures.
“What should be a source of nourishment and stability has instead become a catalyst for economic, environmental, and social breakdown,” the report states.
COVID-19 revealed hidden fragilities
The COVID-19 pandemic served as a wake-up call. For the first time in decades, many food-secure populations experienced shortages.
Lockdowns, labor disruptions, and supply chain failures pushed over 100 million more people into undernourishment in 2020 alone.
“This shock continues to reverberate today around the world,” the report notes.
Governments and businesses alike were forced to re-evaluate the fragility of national and global food supplies.
The report emphasizes that resilient systems must now be treated as a matter of national security and economic strategy.
Hunger amidst plenty
Despite advances in technology and food production, more than 820 million people continue to experience hunger and food insecurity. Meanwhile, nearly 30 percent of all food produced — about 1.3 billion tons annually — is wasted.
“Reducing food waste by less than 25 percent could feed the world,” the report observes, underlining the inefficiency of the current system.
Farmers at breaking point
At the foundation of the food system are farmers — yet they are also among its most vulnerable actors.
According to the report, financial pressure, climate variability, regulatory burdens, and volatile markets have contributed to mental health crises in rural areas.
“Farmer suicide rates almost ubiquitously exceed national averages,” the report warns.
The system, the authors argue, cannot be fixed without putting farmers first.
“A future food system will need to be a farmer-first food system,” it states. This means not only fair compensation, but policy consistency and better access to tools, education, and finance.
Environmental and health crises intertwined
Food systems are a major contributor to global environmental challenges. Agriculture emits over 6 billion metric tons of CO₂ equivalent annually and could reach 9 billion by 2050.
It accounts for 80 percent of deforestation, 70 percent of freshwater use, and nearly one-third of greenhouse gas emissions.
At the same time, poor diets are leading to skyrocketing health costs. Non-communicable diseases like obesity, diabetes, and malnutrition cost global economies an estimated US$3.5 trillion per year.
“We must recognize the food system’s integral role in the health of people and the planet,” the report stresses.
Climate change threatens food security
Extreme weather events, shifting rainfall patterns, and rising temperatures are already impacting global food production.
According to the report, agricultural yields for staple crops like wheat, maize, and rice could fall by up to 30 percent in key regions by 2050.
“Climate change is no longer a distant threat to global agriculture — it is an immediate, compounding force reshaping the productivity, stability, and viability of food systems,” the report states.
A call for radical, cross-sector collaboration
One of the report’s central messages is that fixing the food system cannot be left to farmers and food companies alone. It requires collaboration across energy, healthcare, finance, technology, construction, and government.
“We believe the future lies in radical collaborations,” the report emphasizes. This means building food systems that are not only sustainable and productive, but also socially inclusive and economically viable.
John McCalla-Leacy, Global Head of ESG at KPMG International, put it plainly:
“At the heart of a resilient global food system lies the social fabric that binds communities together. Investing in their strength means investing in people.”
Water scarcity adds urgency
More than half the world’s population now faces seasonal or chronic water shortages.
Agriculture uses around 70 percent of the world’s freshwater — but much of it is wasted through inefficient irrigation.
“If current consumption patterns persist, global water demand is projected to exceed sustainable supply by 40 percent by 2030,” the report warns.
Water-intensive sectors such as dairy, meat, and beverage production are facing growing scrutiny from investors and regulators.
“Water stewardship” is now seen as a top priority for long-term resilience.
Consumer expectations are changing
Today’s consumers, especially younger generations, are demanding more from food producers. They want ethical sourcing, environmental sustainability, and transparency — not just affordability or convenience.
“We’re seeing a profound shift in how consumers relate to food,” said Isabelle Allen, Global Head of Consumer & Retail at KPMG International.
“It’s no longer just about taste or convenience. Expectations now span ethics, transparency, sustainability, provenance, and personalization.”
Personalized nutrition — using AI, genomics, and wearable tech — is growing rapidly. The market is expected to reach US$48 billion by 2028.
A vision for the future
The report concludes with a vision of a food system that is regenerative, inclusive, and future-ready. This includes embracing nature-based solutions like regenerative agriculture, investing in controlled-environment farming to reduce climate risks.
Other solutions include adopting digital tools to increase traceability and efficiency, building coalitions across sectors to address systemic risks and redesigning business models to value nutrition, equity, and sustainability.
“The businesses that thrive will be the ones that treat these expectations not as marketing noise, but as core strategic design principles,” Allen added.
The bottom line
The report issues a clear warning: if today’s broken food systems continue on their current path, the consequences will be severe for people and the planet.
But it also offers hope. With collaboration, innovation, and bold leadership, a resilient global food system is within reach.
As Mike Hayes, KPMG’s Climate Change and Decarbonization Leader, puts it:
“Degraded soils, declining pollinators, and collapsing ecosystems are already disrupting food production... Nature and biodiversity must be seen as a core operating asset for all businesses connected into the food system.”
In short, food is no longer just about feeding people. It’s about the future of life on Earth.
