Value Chains

Urbanization is among the major demographic shifts affecting agrifood systems worldwide. With over half of the world’s population living in urban areas—projected to reach 70 percent by 2050—cities face many challenges in providing residents with  healthy, affordable food. In fact, of the 2.2 billion people experiencing moderate or severe food insecurity, three-quarters live in urban and peri-urban areas.

Food systems play an important role in shaping our diets. Recently, there has been growing attention to food systems transformation, which involves changing different components of global food systems to make nutritious foods more accessible to consumers. At the 2021 UN Food Systems Summit, more than 100 countries pledged to transform their food systems, a clear recognition of the importance of healthy diets in preventing all forms of malnutrition worldwide.

Today’s global food systems carry a hidden price tag: at least USD 10 trillion annually in environmental, health, and social costs, according to both the FAO’s The State of Food and Agriculture 2023 and Food System Economics Commission’s (FSEC) The Economics of the Food System Transformation. Globally, food systems cost more in GDP than they contribute and play a driving role in exacerbating poverty, malnutrition, and climate change.

The world’s food security challenges are becoming increasingly complex. In many countries, populations now face a double burden of malnutrition: both undernutrition and micronutrient deficiencies and overweight/obesity and diet-related non-communicable diseases (NCDs). These burdens are being further exacerbated by the strain placed by climate change on food supplies and nutritional content.

The impacts of our diets extend well beyond mealtime to affect our health and well-being. Unhealthy diets underpin many public health challenges, including all forms of malnutrition and diet-related noncommunicable diseases (NCDs). Many countries are facing a double burden of malnutrition—meaning that undernutrition and micronutrient deficiencies coexist with overweight and obesity, or diet-related NCDs. Unhealthy diets are the leading risk factor for NCDs, which are responsible for more than 73% of deaths globally.