2024 in Review: Executive Search Trends Shaping the Food and Ingredients Industry

The global food and ingredients industry continues to evolve rapidly, driven by shifting consumer preferences, technological innovation, and sustainability imperatives. This dynamic environment has created unique challenges and opportunities for executive search firms specialising in the sector.

Focus on Sustainability Leadership

Sustainability remains a top priority for the food and ingredients industry. With consumers demanding eco-friendly practices and governments introducing stricter regulations, companies are seeking leaders who can integrate sustainability into their core business strategies. Executives with expertise in circular economies, carbon neutrality, and sustainable supply chain management are in high demand.

According to a 2023 survey by the Food and Agriculture Organisation (FAO), 67% of food companies identified sustainability as their primary strategic goal for the next five years. This has led to an increase in executive search assignments focusing on Chief Sustainability Officers (CSOs) and other roles tasked with driving Environmental, Social, and Governance (ESG) initiatives.

Rise of Alternative Proteins and Novel Ingredients

The alternative protein market—spanning plant-based, cultivated, and fermented products—is expected to grow to $37 billion by 2030, according to a report by MarketsandMarkets. In 2024, the industry is seeing intensified competition for executives with a track record of scaling disruptive technologies. This includes leaders with experience in biotech, fermentation processes, and large-scale commercialisation.

Roles such as Chief Technology Officer (CTO), Innovation Director, and Business Development Manager in the alternative protein space are increasingly prominent in search mandates. Companies are prioritising candidates with interdisciplinary expertise spanning food science, technology, and market strategy.

Digital Transformation and Data-Driven Decision Making

As technology becomes more integral to operations, the food and ingredients industry is seeking leaders who can harness the power of data analytics, artificial intelligence (AI), and automation. According to a Deloitte report from late 2023, 45% of food companies reported that they were investing in advanced analytics to improve supply chain efficiency and consumer insights.

Executive search firms are increasingly tasked with finding leaders capable of overseeing digital transformation. Roles such as Chief Digital Officer (CDO) and Head of AI Strategy are emerging, with firms prioritising candidates who understand the nuances of digital tools tailored to food production and distribution.

Diversity, Equity, and Inclusion (DE&I) in Leadership

The importance of fostering diverse leadership teams has never been greater. Studies have shown that diverse executive teams outperform their peers, with McKinsey’s 2020 report noting a 25% greater likelihood of above-average profitability for companies with highly diverse executive boards. In 2024, there is a significant push within the food and ingredients sector to diversify leadership pipelines.

Executive search firms are working closely with clients to ensure shortlists include candidates from underrepresented backgrounds. This often requires innovative sourcing strategies, partnerships with industry-specific organisations, and a focus on breaking down biases in the hiring process. Companies are not just prioritising diversity in hiring but are also emphasising inclusive leadership styles that foster collaboration and innovation.

Globalisation vs. Localisation

While globalisation has long been a cornerstone of the food industry, recent geopolitical and economic shifts have highlighted the importance of localised leadership. Trade restrictions, supply chain disruptions, and regional consumer preferences have emphasised the need for executives with deep knowledge of local markets.

In 2024, executive search firms are reporting a surge in demand for regional CEOs and market-specific leaders. These roles require a blend of global strategic thinking and local operational expertise, especially in rapidly growing markets such as Southeast Asia, Africa, and South America.

Emphasis on Agility and Crisis Management

The past few years have underscored the importance of agility in leadership. From navigating pandemic-induced disruptions to managing the impacts of climate change, executives in the food and ingredients industry are expected to be adept at crisis management. According to a 2024 Korn Ferry survey, 72% of CEOs cited agility as the most important trait for new hires in leadership roles.

This trend has influenced the executive search process, with firms placing greater emphasis on candidates’ track records in navigating uncertainty. Psychometric testing and scenario-based interviews are becoming common tools for assessing candidates’ agility and resilience.

Integration of Health and Wellness Trends

Consumers are increasingly prioritising health and wellness in their purchasing decisions. The global functional food market is projected to reach $255 billion by 2027, according to Grand View Research. This shift has created demand for executives who can innovate in the realm of nutritional science, product formulation, and personalised nutrition.

Roles such as Head of Product Innovation and Chief Marketing Officer (CMO) with experience in health-focused brands are particularly sought after. Companies are looking for leaders who understand both the science behind health claims and the art of communicating these benefits to consumers.

Building Purpose-Driven Organisations

Purpose-driven leadership has become a defining characteristic of successful companies. Executives who can articulate and embody a clear mission are better equipped to attract top talent and foster brand loyalty. In the food and ingredients sector, purpose often centers around sustainability, health, and community impact.

Search firms are increasingly evaluating candidates based on their ability to inspire and engage employees, particularly in a hybrid work environment. Leadership assessments now include an evaluation of emotional intelligence (EQ) and values alignment.

The Growing Importance of Employer Branding

The war for talent extends beyond attracting customers to attracting the best leaders. Strong employer branding is critical in executive search, especially for companies competing with tech and finance sectors for top talent.

In 2024, firms are advising clients to invest in showcasing their culture, mission, and impact. This often involves crafting compelling narratives about the company’s role in addressing global challenges like food security and sustainability. Candidates increasingly expect transparency and alignment between their personal values and the company’s mission.

Evolving Compensation Strategies

Compensation packages for executives in the food and ingredients industry are becoming more sophisticated and tailored. In addition to competitive salaries and bonuses, companies are offering equity options, long-term incentive plans, and benefits tied to personal development and well-being.

According to a 2024 report by Willis Towers Watson, 38% of companies in the food sector have introduced ESG-linked performance incentives for executives. This reflects a broader trend of aligning compensation with long-term strategic goals, particularly in areas like sustainability and innovation.

Final Thoughts...

The executive search landscape in the food and ingredients industry is being reshaped by a confluence of global trends. From sustainability and digital transformation to DE&I and purpose-driven leadership, companies are navigating a complex and competitive hiring environment.

Staying ahead requires a deep understanding of industry-specific challenges and opportunities. By identifying leaders who can drive transformation and align with long-term goals, executive search firms play a pivotal role in shaping the future of the food and ingredients industry.

Sources:

• Food and Agriculture Organization (FAO), "Sustainability in the Food Industry," 2023.

• MarketsandMarkets, "Alternative Proteins Market Forecast," 2023.

• Deloitte, "Digital Transformation in Food," 2023.

• McKinsey & Company, "Diversity Wins: How Inclusion Matters," 2020.

• Korn Ferry, "Leadership in Uncertainty," 2024.

• Grand View Research, "Functional Foods Market Report," 2023.

• Willis Towers Watson, "Compensation Trends in the Food Sector," 2024.