Between 20 and 25 global fast-moving consumer food brands will emerge in coming years from around 10 brand manufacturers, according to a survey by Cap Gemini Ernst and Young.
Manufacturers will "marry" these brands with what they term "local jewels" to meet growing consumer demands for quality local food products.
The company, which provides management services to help businesses implement growth strategies, surveyed 220 leading food executives in 19 countries in Europe, North America and the Asia-Pacific region.
The results warn that trend-setting manufacturers are looking beyond retailers to market directly to consumers.
And, although the survey shows that conventional supermarkets are reaching the end of their lifecycle, most retailers have had little success using the internet as a viable option to reach the consumer.
In the future, food stores will be larger, consumers will dictate demands far more and supply-chain co-operation will become increasingly important.
The report shows that with better supply-chain integration, Europe could realise cost savings of €8 billion (£6.3 billion) by 2010 while savings in the United States could total as much as $7 billion (€7.99 billion) if retailers and manufacturers worked together.
"The consumer is wielding unprecedented power and the need for establishing a powerful brand, whether retailer or manufacturer, grows as companies try to reach consumers in multiple regions.
"Understanding these trends and implementing strategies to deal with them effectively are shaping the future of the industry," according to the Cap Gemini Ernst and Young report.
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