food and beverage industry challenges Archives - Business Intelligence

Tag: food and beverage industry challenges

Food and beverage companies

How the Global Food and Beverage Sector Will Change Post COVID-19: Lessons from China’s recovering F&B Industry

For several months China’s food and beverage companies bore the brunt of demand-supply adversities due to the COVID-19 crisis. The pandemic has also had a severe impact on the global supply chain, foodservice sector, commodity prices, and demand for essential and non-essential products, especially after some of the major cities in China went into complete lockdown. As China enters the recovery phase after months of battling the aftermath of the coronavirus outbreak, the food and beverage sector companies in China have started to resume operations. However, the food and beverage sector in the country is far from going back to the normalcy as it was before the crisis, much has changed in the consumer approach to the F&B sector. We’re seeing the activities across the value chain take a different direction. From the introduction of automated, contactless sales amidst the rising food safety concerns to safe online purchasing and offline food delivery involving ‘no touch’ technology, the industry seems to be dancing to a very different tune. As a result, food and beverage companies in China are rolling out new initiatives to meet the seismic shift in consumer purchasing behavior.  

In this article, food and beverage industry experts at Infiniti Research examine the changing consumer habits in China about what they eat and how food and beverage companies across the world will soon be faced with similar challenges.

food and beverage

Request a free brochure to know more about Infiniti’s business continuity support solutions to help your business bounce back with the right strategies during COVID-19.

New Trends Global Food and Beverage Companies Can Expect

Provide easy-to-prep meal options

As food service companies shut shop during the COVD-19 outbreak, there has been an increased spike in the demand for canned foods in China over the past few months. However, due to the prolonged nature of the existing crisis, consumers are now seeking to explore more nutritious options apart from canned or frozen. A recent analysis by experts at Infiniti Research shows that consumers in China are gravitating towards in-home products as compared to canned or frozen foods. Food manufacturers can take this as an opportunity to explore new avenues of business and invest into introducing easy-to-prep meals to suit changing consumer demands.

Increasing concerns over product safety

Consumers are now highly aware of the importance of hygiene and food safety. Food and beverage manufacturers across the globe must consider technological advancements like blockchain to enhance visibility and transparency into their supply chain. As consumers begin to become more cautious about the safety of the food products that they consume, allowing ample visibility and transparency can help gain and retain consumer trust in the brand.

Increased popularity of online buying

A notable trend in China post the pandemic is that a greater number of the elderly population are resorting to online buying platforms than ever before. Known to be less tech-savvy, this group of the population needs to have an easy-to use interface and clear images and easy to read product descriptions in order to fuel the trend and increase the popularity of food delivery among this group of the population.

Want more insights on how the food and beverage sector will change in your region post the pandemic and how your business can stay prepared? Request a free proposal from our industry experts.

food retail

How to Recapture Growth in the Fast Food Industry

Fast food companies have enjoyed high profits despite offering products and services at low costs over the years. However, the shifting consumer demand to healthier and premium quality products at the existing price points have left fast food chains grappling for ways to satisfy these needs. The fast food industry is primarily characterized by convenience, affordability, and speed. But modern customers in the sector are looking for this and much more from players in the fast food industry. Companies in the fast food industry that are able to identify and align their strategies to suit the changing market demands can ensure a stable future for their business. Fast food industry experts at Infiniti Research identify some critical strategies that can help companies in the sector to turn a reasonable profit through increased operational excellence and improved customer service strategies.

Although companies in the fast food industry can expect challenging times ahead, capitalizing on the right opportunities can help harness growth and profitability for players. Request a free proposal to know how our solutions can be tailor-made to cater to your business’s unique challenges and help you seize profitable business opportunities.

Fast food industry

Listen to your customers

In the case of any service industry, knowing what your customer wants and effectively catering to their demands is paramount. As consumer demands shift towards healthier and better quality food ingredients, top companies in the fast food industry have already started to incorporate these fast food industry trends into their business. Furthermore, some fast food companies have also begun to make the food in front of the customers so that they can witness the quality of ingredients used and be convinced of cleanliness and nutrition in the food that they consume.

Learn more about how we help clients in the fast food industries with agile business strategies

Transparent marketing strategies

You may often find that in today’s digital age, not all marketing strategies of fast food companies take off as expected. One of the main reasons for this is due to the lack of transparency in the marketing strategies of fast food companies. In the age of empowered customers, people have wider options to gain more information and voice their opinions than ever before. Showcasing transparency in operations as a part of the marketing strategies is one of the best ways for fast food industry companies to garner and maintain customer loyalty.

Identify untapped niche

Millennials were earlier an untapped niche for fast food companies. Reaching out to such untapped segments can open up new business verticals for companies in the fast food industry. For instance, recently a well-known fast food chain reached out to millennials in two ways: firstly, by engaging with customers and providing through online channels and by secondly, by giving this customer group a sense of community by promoting authenticity and inclusion through workshops and tastings. This also resulted in several consumers documenting their experiences through social media and word-of-mouth, enhancing the branding of the company.

Gain more insights on Infiniti’s solutions for companies in the food and beverage industry

food retailers

What Food Retailers Can Do to Revive the Declining Sales Volume

food retailersFood retailers saw a steady increase in the product volumes sold during the late 90s’ and the early 2000s’, but the growth of food-at-home (FAH) segments have been stalled over the past decade. One of the main reasons for this is when the US customers faced the heat of the recession in 2008, the common trend among households became to eat out less and save money. As a result, the volumes sold by food retailers in the FAH category saw a steady rise. However, as the economy improved, consumers began dining out frequently, consequently, volumes of products sold by companies in the food retail sector took a hit. Although food industry experts at Infiniti Research predict that the sector will continue to undergo the pressure of declining sales over the next few years, there are a few measures to help food retailers resign from flat or negative growth.

By having a clear understanding of the changes and transformations that have driven food-volume growth in the recent past and how those trends will likely evolve, consumer food companies can better prepare for the road ahead. Request a free proposal to know how our food industry experts can help you stay in line with the market changes in the sector.

Ways to spur growth in food retail

Amidst the downbeat forecast relating to the growth patterns, several food retailers have already begun taking an ad-hoc approach for addressing the sluggish FAH growth on the overall business. Measures such as minor product innovations and or reduction in packaging size are some common examples. But to make way for sustainable growth and plan for the challenging years awaiting them, food retailers must take a broader and long-term view of the market. This can be done through bold strategic moves including collaborations or even partnerships.

Re-evaluate product portfolios

There is no doubt that there has been an overall decline in FAH volumes. Despite this, some subcategories have managed to show signs of growth in the recent years. This has been largely driven by the demographic shifts that have taken place in the US over a span of the last 10-15 years. It is vital for food retailers to identify pockets of growth by combining data related to changing consumer attitude and purchasing behavior with the data collected on the changing demographic and economic trends. Furthermore, the lifestyle changes of US consumers are promoting the growth of healthy and organic food products. Therefore, food retailers can concentrate their efforts on these verticals to ensure stable profits. Identifying underperformers is another area of focus for companies in the food retail sector. Divesting in product categories that are rapidly declining in terms of volumes and profits would be advisable.

Is your business experiencing a slump in sales? It can be revived and brought back to track with the right market intelligence solutions to guide your decision-making process. Get in touch with an expert for more insights on how our tailor-made solutions can cater to your specific business challenges.

Supply chain changes to manage volatility

Food retailers often find themselves exposed to commodity price fluctuations and aggressive supply chain transformations are the only solution to overcome such challenges. For instance, a popular coffee chain had purchased its first coffee farm in 2013 to ensure an undisputed supply of coffee beans. Food retailers can also consider joint ventures which will help increase their collective bargaining power and respond better to commodity volatility. Some top food retailers are also trying to develop new and innovative product formulations to better respond to commodity price fluctuations. Such process changes can help to considerably lower costs so that food retail companies can better handle the volatility.

Enter into mutually beneficial partnerships

The challenges faced by both food retailers and food manufacturers over the coming years will be more or less the same. Some of the top retailers are already deeply invested in the private-label and prepared-foods businesses. These categories present opportunities for mutually beneficial partnerships among food companies. Seeking new ways to collaborate with food retailers will be the trait of winning food companies.

Want more insights on our solutions for companies in the food industry?

Food and beverage companies

Thought Leader Insights: Key Challenges in the German Food and Beverage Market

Germany is Europe’s largest market for the food and beverage industry. The changing food habits of German consumers are prompting several international food and beverage companies to set shop in this region. Food and beverage companies in Germany can also expect to see significant investments and growth over the next few years. The lucrative market prospects make the German food and beverage market a highly lucrative one, consequently, leading to cut-throat competition. In this article, an Infiniti Research thought leader, who has expertise in working with several global food and beverage companies overcome their business challenges, shares some critical insights on the German food and beverage market and describes strategies for players to succeed in the long run.

What makes the German food and beverage market challenging?

Given the fact that Germany is one of the largest economies in the world and its huge market size makes it extremely challenging for companies doing business in this region to become a significant player in the market. In the food and beverage industry, every category is characterized by immense competition and each brand attempts to be recognized by consumers by telling them a unique story. Often food and beverage companies struggle to achieve this with several players trying to do the same thing and sometimes companies even try to communicate too many things at the same time. This often ruins the effectiveness of a message in reaching the target audience and creating an impression in their minds about the brand. Also, due to the increased level of competition, both the consumers and buyers are very skeptical in this market. It takes considerable time and effort to convince them of their first purchase, and then it takes a great product in order to be purchased regularly. Despite all these factors, what makes the German and food and beverage market appealing is the fact that once a brand gets a foothold in the German market and people start to like it, both consumers as well as buyers become loyal partners.

Comprehensive research and development is key to success in any new market. Request a free proposal to know how we help clients with turnkey solutions to support their market expansion plans.

Is there any common pitfall while entering the German food and beverage market?

There is often a lot of impatience when it comes to launching a new product in the German food and beverage market. This is especially true in the case of companies that are fairly young and inexperienced in venturing into international markets. It is important for such players to work collaboratively with market experts who can validate the idea of expansion plans. Another pitfall that becomes crucial in a German market entry is when brands overly follow the lean approach and try to venture into the market without the right preparation in terms of product quality, packaging, websites, or marketing strategy. Germans are not as proficient in English as many of their neighboring countries like the Netherlands or Scandinavia. So, being fluent in German is key if you would like to convince both consumers as well as buyers about your product.

Looking for solutions to address your key business challenge? Get in touch with an expert for unparalleled business insights.

Processed food industry

Playbook for Success in the Modern Food and Beverage Industry

The total revenue of the global food and beverage industry is skyrocketing with each passing year. Although the quality of products or service plays a significant role in the survival of food and beverage companies, this no longer remains the only ingredient for success in the food and beverage industry. With the ever-changing market trends and the growing need to satisfy changing consumer demands, companies in the sector must be on their toes to grasp new food and beverage industry trends. It is also important for businesses in the sector to identify ways to leverage maximum benefits from the market opportunities. Based on our discussions with several prominent food and beverage companies from different regions, here are some key takeaways on how the food and beverage industry is changing and what companies in this sector must do to thrive.

With consumer demands and preferences changing rapidly, it’s time for food and beverage companies to take a fresh look at their strategies to better connect with target consumers. Request a free proposal to know how we can help you achieve this.

Trends disrupting the food and beverage industry

Catering to a new group of shoppers

The old rules of the CPG no longer work with the new-age shoppers. Millennials and Gen Z consumers are inclined to brands that fit their lifestyle. This group of consumers are known to shy away from manufactured marketing of traditional food and beverage industry products. They favor ‘real ingredients’ and expect labels to be clear and easily understandable. Moreover, the internet has brought about drastic changes to customer expectations not only online but also in the store. Younger consumers want to be able to order ahead, pay, and capture loyalty rewards, all by using their phones. Catering effectively to this new group of consumers should be a major milestone for companies in the food and beverage industry.

Direct to consumer channels for launching new products

New players in the food and beverage industry often start out by selling directly to consumers, mostly using online channels. Direct to consumer brands are often more successful in capturing deep data on their target consumers which can be further used to deliver personalized consumer experience, refine product strategy, and build long-term customer relationships. By selling directly, players in the food and beverage industry can also experiment with new business models. Furthermore, when these brands plan to move to brick and mortar, it can dramatically enhance their chance of success.

Gain competitive intelligence about market leaders, track key industry trends, opportunities and threats with our advanced market intelligence solutions. Get in touch with our experts for more insights on our solutions.

Focus on smart growth

With so many brands in the food and beverage industry and ample choice available to consumers, retailers are often quick to pull the chord on products that fail to deliver quick sales or even attract new customers. When launching a new product in the food and beverage industry, it is always better to start small in order to be able to manage the complexities of retail distribution. Brands that focus on expanding too rapidly could run into crippling cashflows or may even face critical manufacturing or supply chain problems. Also, increased focus must be given to communicating stories at the shelf via packaging, promotions, shelf-edge marketing, and the other tried and tested tools of retail marketing.

Learn how our solutions can help you stay updated with the latest retail industry trends

Four Food Industry Trends to Expect in 2019

The food industry is rapidly evolving. Apart from staying on top of the emerging technologies and innovations, companies in the food industry must also keep a close watch on the changing consumer preferences and rising costs. Globally, the food industry in emerging markets including Philippines, China, and Malaysia are booming, while more established and mature market such as the US, Europe, and Canada are showing stagnant and slower levels of growth. There are similar macro trends that are driving growth and innovation across the globe despite varying economic and cultural differences. Infiniti Research reveals four food industry trends to expect in 2019 as this sector grapples with changing eating habits.

Food industry trends 2019      

Increasing demand for transparency

One of the biggest food industry trends this year is the rising consumer need for transparency. Modern consumers are well-informed and greatly interested in knowing the ingredients that go into the food products that they consume. Considering the rise of health and diet conscious customers, a greater number of consumers are reading the back of packages now more than ever.

REQUEST FREE BROCHURE

Is your company equipped to meet the dynamic food industry trends? Request a free brochure to know how Infiniti’s solutions can help you gain a winning edge in the market.

At-home meals

Recent research reveals food industry trends wherein a greater number of consumers prefer to have their meals delivered to their homes. This is primarily due to factors including streaming media, work from home, and rising need to stay away from the maddening crowd. Consequently, through the mid of 2018 to throughout 2019, the decline in dining at restaurants is expected to become one of the ongoing food industry trends.

Made to order/ customization

This is one of the food industry trends that have been evolving for years due to the growing demand of consumers to personalize the meals that they eat. Furthermore, the dietary preferences, restrictions, and allergic reactions to certain food items are some of the main factors that are driving the popularity of customization in meals to suit the needs of individual consumers.

Channel blur

An increasingly diverse array of operators in the food industry are venturing into foodservice in order to compete for their “share of stomach”. Players in the food industry no longer compete with only counterparts offering similar products. Rather, they now have to compete with segments including food trucks, convenience stores, supermarkets, and other meal kits that provide innovative options for consumers who are looking for variety and flexibility.

What were the top food industry trends in 2018?

Infiniti’s solutions for the food industry

In a highly dynamic sector such as the food industry, it is essential to keep tabs on the food industry trends. Furthermore, the uncertainties in the global economy are expected to take the center-stage in the future of food industry. Infiniti Research adopts a holistic approach to market research and provides comprehensive insights into the food industry trends, challenges, and strategies to strive in the target market. With a team of highly skilled market research professionals, we offer advanced, customized solutions that will help food and beverage companies to magnify competitive advantage by improving speed-to-market and stay up-to-date with the latest food industry trends.

REQUEST A PROPOSAL  to know more about Infiniti ‘s solutions for business.

solar panel manufacturers

Food and Beverage Industry: A Comprehensive Overview

Food and Beverage Industry Overview

The food and beverage industry is going through rapid transformaContact UStions; and with the latest trends and innovations in place, it is not inappropriate to say that there is no looking back for food and beverage companies. Furthermore, the demand for healthy foods and packaged food and drinks items are some of the popular food and beverage industry trends that are all set to stay for a longer period of time. Food and beverage companies that revitalize themselves with the changing market trends will be successful in their venture to top the list of customers’ preference. However, like most other industries, this market is also facing several critical challenges that are even bigger than the growing market competition. Technological advances in the food and beverage industry also create a challenge in terms of adoption and budget restraints. In this article, we have analyzed the top trends and challenges that food and beverage companies are facing, globally. (more…)

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice