KPMG International has issued a strong warning to global leaders and industries far beyond agriculture, urging them to recognise their vital role in transforming the world’s food system. In its latest report, Reimagining Global Food System Resilience, KPMG lays out a bold plan for cross-sector collaboration to tackle one of the most urgent challenges of our time.

Global Food System Under Strain

According to the KPMG report, the global food system is under immense pressure. More than 820 million people are struggling with hunger and food insecurity, while nearly 30 per cent of all food produced—about 1.3 billion tonnes each year—is wasted. At the same time, rising rates of obesity, diabetes, and malnutrition are costing economies an estimated US$3.5 trillion annually. Farmers, especially smallholders in countries like India, are facing high suicide rates, financial stress, and a lack of safety nets.

Environmental and Resource Challenges

The agriculture sector is a major contributor to environmental problems, emitting over 6 billion metric tonnes of CO2 each year—a figure that could rise to 9 billion by 2050 if current trends continue. Agriculture uses 70 per cent of the world’s freshwater and is linked to 80 per cent of global deforestation. More than half the world’s population now faces seasonal or chronic water shortages, while extreme weather events are causing damages worth US$700 billion every year.

Since 1985, the world has lost nearly 180 million hectares of arable land, shrinking from 1.4 billion hectares to 1.22 billion hectares by 2020. By 2050, the world will need to feed nearly 10 billion people and accommodate over 2.5 billion new urban residents, all while aiming for net-zero energy goals.

Radical Collaboration

KPMG’s report makes it clear that building a resilient food system is not a job for farmers and food companies alone. The report calls for “radical collaborations” across sectors such as energy, healthcare, finance, technology, and infrastructure. These sectors must work together with traditional food system players and governments to find solutions that benefit the environment, communities, and everyone in the value chain.

The report identifies ten key levers for building resilience in the food system. These include managing competing land uses, addressing climate change and biodiversity loss, improving water stewardship, focusing on health and nutrition, meeting diverse consumer expectations, ensuring food equity, reforming subsidies, managing microbial risks, directing capital flows, and embracing technological innovation.

Health and Nutrition in Focus

While life expectancy is rising across the globe, many people are not living healthier lives. Non-communicable diseases such as obesity, heart disease, and diabetes have become the leading causes of death worldwide. In 2022, more than 45 million children under five suffered from severe acute malnutrition, and nearly 150 million were stunted.

Ultra-processed foods are common in high-income countries, fuelling overnutrition, while undernutrition remains a major issue in poorer regions. The report highlights a growing movement to treat food as medicine, with governments and companies investing in healthier products, clearer labelling, and partnerships with healthcare providers. The rise of personalised nutrition, powered by genomics and wearable health technology, is expected to create a US$48 billion market by 2028.

Inequality and Food Access

Despite producing enough food to feed everyone, the world still battles hunger and malnutrition. Economic disparity, weak infrastructure, and market distortions mean some regions have excess consumption and waste, while others face scarcity. Food inflation has outpaced general inflation in recent years, making it even harder for vulnerable populations to afford nutritious diets.

The report notes that reducing food loss by just 25 per cent could feed an additional 870 million people each year. Technologies such as AI-powered logistics and digital marketplaces are helping to cut waste and improve food distribution, but smarter systems and business models are needed to ensure food equity and resilience.

Policy, Subsidies, and Market Distortions

Government subsidies and incentives have long shaped the food system, but often with unintended consequences. In some cases, subsidies have led to environmental damage, such as nitrogen pollution in Europe or deforestation in Brazil. The report calls for a shift towards subsidies that support climate-resilient, nutrition-sensitive, and innovative outcomes. Businesses are also encouraged to work with policymakers to support incentives for sustainable production and regenerative agriculture. Transparency in supply chains and responsible sourcing are becoming central to building trust and securing market access.

Microbial and Biosecurity Threats

The food system faces rising risks from microorganisms, including antimicrobial resistance and foodborne pathogens. The World Health Organisation warns that by 2050, antimicrobial resistance could cause 10 million deaths annually, overtaking cancer as the leading cause of mortality. Foodborne illnesses already affect 600 million people each year, causing 420,000 deaths. The report stresses the need for investments in surveillance, early detection, and biosecurity protocols, as well as innovations in synthetic biology and precision fermentation to reduce reliance on antibiotics and animal inputs.

Capital and Technological Innovation

Capital flows are increasingly shaping what gets produced and how food systems evolve. Sustainable investment is projected to reach US$53 trillion by 2025, with more funds directed towards regenerative agriculture, agri-tech, and nature-based solutions. However, most investment remains concentrated in certain regions, and more must be done to support smallholder farmers and vulnerable areas. Technological advances are also accelerating change across the food system. The agri-tech sector is expected to reach US$22.5 billion by 2025, with innovations in robotics, satellite imaging, and IoT devices driving data-centric agriculture. Automation and digitalisation are transforming farm labour, supply chains, and consumer engagement.

Innovation and Collaboration in Action

The KPMG report highlights several real-world examples of successful collaboration and innovation. In Australia’s Bega Valley, a circular economy initiative has turned waste into compost, improved soil health, and reduced emissions. In Canada, Entosystem uses black soldier fly larvae to convert food waste into animal feed and fertiliser. In the UK, FareShare redistributes surplus food to those in need, preventing waste and supporting public health. Banks and financial institutions are also stepping up, offering sustainability-linked loans and investment platforms to support regenerative agriculture. In France, the La Ferme Digitale association is accelerating the adoption of technology in agriculture, reducing pesticide use and improving farm profitability.

This article is based on insights from KPMG International’s report, Reimagining Global Food System Resilience.