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Food cutting equipment

Identifying Growth Opportunities in The Food Cutting Equipment Market: Market Opportunity Assessment Engagement for a Food Processing Equipment Manufacturer

Food processing equipment market overview

Modern Food Processing technology is increasingly being channeled towards achieving safer, healthier, nutrient-rich, wholesome, environment-friendly & sustainable means of production. Food processing is an integral part of the food supply chain has led to the rise in demand for industrial food cutting machines over the last few years. Owing to the rising popularity of the convenience foods that involve minimal preparation time, food vendors are increasingly expanding their portfolio of processed food products. There is also an increasing demand for industrial food cutting machines for cutting, dicing, and shredding. Moreover, the rising support for the food processing industry through government initiatives in emerging economies is expected further to boost the adoption of industrial food cutting machines. As a result, the proliferation of the global food processing industry will promote the growth of the global industrial food cutting machines market.

Engagement overview

Today, food cutting equipment finds application in a wide range of categories including vegetables, fruits, meat and poultry, cheese, seafood, and even in bakery and confectioneries. As the quality of food and food processing hygiene takes the front seat, it is vital for food cutting equipment manufacturers to stay updated with new market trends, innovations, and competitor strategies to offer products that fulfill changing market needs. This recent success story from Infiniti Research showcases how our industry experts enabled a prominent player in the food cutting technology market to devise actionable insights in growth opportunities in regions including NAFTA, Europe, and APAC. During the twelve-week engagement, Infiniti’s market opportunity analysis helped the client to identify key growth segments and major market drivers to expand their market share. By actioning market insights gained through the engagement, the client soon signed a multi-million-dollar long-term contract with an international food manufacturing company.  

Client profile

A prominent player in the food cutting equipment market, headquartered in North America. The company manufactures and sells commercial cutting equipment to food processing and related industries. Over the years, the company has also expanded their global presence into the EMEA and APAC regions.

Business challenge

The client, a multinational company in the food cutting equipment market, found it challenging to accurately identify and understand the changing market dynamics in different markets. As such, they approached our industry experts to assess the food cutting equipment market and competitive and end-user landscape to develop actionable insights on the growth opportunities across NAFTA, Europe, and APAC. The client also wanted to gauge the demand for food cutting equipment in different segments of the food industry with a critical focus on the fruits and vegetable segment. They also wanted to innovate their existing product portfolio to accommodate specifications and features based on the latest market trends and technological advancements. Experts at Infiniti were also tasked with undertaking a competitive intelligence study to evaluate how key players in the market catered to the dynamic end-user requirements.

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Our Approach

Infiniti Research used an integrated approach, including primary and secondary research, to provide strategic insights to solve the client’s unique business challenges. Direct interviews with several business executives, channel partners, dealers, trade partners suppliers from the industry were undertaken as a part of the primary research. The secondary research involved a thorough analysis and information gathering from sources, including Market Research Reports, Annual Reports, Company, and Executive Presentations, and also through social media monitoring. The engagement also included:

Market opportunity assessment: To evaluate growth opportunities in regions including NAFTA, Europe, and APAC and identify new avenues to enhance market share

Industry Trend analysis: To delve into the latest technological advancements in the food cutting equipment market and understand lucrative product specifications that have high demand in different segments of the food processing industry

 Competitive intelligence study: To gain a deeper understanding of end-user requirements in the food cutting equipment market, examine how top competitors catered to these demands, and evaluate gaps in the product portfolio and market strategies compared to other key players in the market.

Strategic Insights and Key Recommendations to The Food Cutting Equipment Market Client

  • Through a detailed market opportunity assessment, experts at Infiniti Research observed an increasing demand for pre-cut vegetables, especially in the NAFTA region, owing to the busy lifestyles of the urban population. Notably, consumers are willing to pay 2.5 times more for pre-cut fruits and vegetables than regular bundled vegetables. Consequently, there is an immense opportunity for market growth in cutting equipment for fruits and vegetables. This trend is also expected to dominate in emerging markets of EMEA and APAC due to rising urbanization.
  • Another area of focus for food cutting equipment manufacturers is the bakery and confectionery market. With this industry proliferating in emerging countries like India, there are lucrative opportunities to be explored for food cutting equipment companies. Different types of blades (single and double bevel) with specific cutting speeds are required for the different bread formulations (white, wheat, breakfast, potato, low fat, low carb, and hard crust). End-users prefer machines that provide precise cutting with minimum waste, especially for whole bread and crouton cubes. A notable innovation in this area is the ultrasonic food processing machines designed for bakery products; it comprises a vibrating knife that creates a frictionless surface to cut the food without deforming it.
  • The detailed competitive intelligence study undertaken by our industry experts suggests that some key players are offering demo programs to end-users and integrators for testing slicing and dicing equipment in their laboratories to increase the sales of machines. Such strategies are giving them an edge in the market to compete effectively and increase market share. Apart from this, experts at Infiniti also recommended strategies to the client to re-evaluate and enhance after-sale services of their food cutting equipment. This will help the client promote brand loyalty and customer satisfaction, which is vital in the case of equipment involving substantial capital investments.    
  • Infiniti’s industry trend analysis identified an increasing need for food cutting equipment that compact and easily portable.  Manufacturers are focusing on machines that are compact with additional features for faster changeovers. The quick changeover feature helps clean and sanitize machines quickly. Adopting these features as a part of innovation can help the client penetrate new markets and considerably expand market share.
  • Another key trend observed was that multi-purpose machines (which can cut different fruits and vegetables) that offer high throughput are the key requirements driving the fruits and vegetables and snack industries. Due to the increasing demand for cut vegetables and fruits worldwide, companies mainly prefer such equipment. Manufacturing and promoting multipurpose machines can help the client capitalize on high growth opportunities, especially in emerging markets.  

Business Impact

Infiniti’s market opportunity assessment helped the client uncover critical growth prospects in their target markets in NAFTA, Europe, and APAC regions.  Based on recommendations by industry experts at Infiniti, the client was able to invest in new and lucrative segments such as food cutting equipment for fruits, vegetables, and bakery. By expanding their product portfolios through technological innovations in these segments, the company soon became a leading manufacturer and supplier of food cutting equipment in the APAC region. Other key benefits gained by the client through the engagement include:

Get in touch for detailed insights into the food cutting equipment market

Food Processing Industry + Risk Management Solutions

Food Processing Industry: Mitigating Risks and Surviving the COVID-19 Pandemic

The advent of the food processing industry is commonly credited to the makeover and reshaping that technological advancement brought to the food and beverage industry. While the industry suffered significant losses during the financial crisis of 2007-08, it rapidly recovered in the mid-2010s and continues to grow. However, the challenging aspects of the COVID-19 pandemic led to a substantial reduction in revenue due to reduced disposable incomes, and suffering GDPs across the globe.

As the food processing industry attempts to recover from the aftermath of the pandemic, industry leaders are encouraged to identify, evaluate, and mitigate the risks in the market. Consumers’ changing preferences, supply chain disruptions, current economic conditions, and, most importantly, food safety, are some of the risks of food processing. Consequently, food processing companies are shifting their focus on risk management solutions.

This market is also influenced by various dynamic trends and significant growth drivers. Trends such as the innovation of technologies that reduce the detrimental impact on food, and maintain higher nutritional value, are having a major impact on the market. The demand for ready-to-eat meals, changing lifestyles, and an increasing population of nuclear families is acting as highly impactful market growth drivers. However, due to the risks mentioned above in the food processing industry, companies are finding it challenging to capitalize on these crucial growth drivers efficiently.

Therefore, food processing companies require appropriate risk management solutions to mitigate risk and capitalize on the trends and growth drivers in the market. To help food processing industry players achieve this, Infiniti’s risk management experts discuss the significant risks impacting the food processing industry and detail the benefits of risk management solutions below.

Identifying, understanding, and mitigating risks in the food processing industry is an extremely challenging task. Request a free proposal to gain in-depth insights and guidance from Infiniti’s risk management experts.

Food Processing Industry Risks

Infiniti’s risk management experts identified four significant risks that have impacted the food processing industry for years. However, since the COVID-19 pandemic, the risks have evolved, and companies require a comprehensive understanding of these risks as they currently affect the market. The four most significant risks impacting the food processing industry are as follows:

Food Processing Industry + Risk Management Solutions

Supply Chain Disruptions

Crops, livestock, and other raw materials in the industry are highly prone to exposure, damage, and disruption. Factors such as the weather, rising energy costs, storage constraints, and transportation issues are increasing risks to the supply chain. The disruption caused by these factors can lead to loss of raw material, delays in processing and delivery, and consequentially, substantial monetary losses. Due to COVID-19, energy costs have risen in many geographic locations, while many countries have gone into lockdown, stopping domestic and international transport entirely. These combined factors can make the supply chain processes of food processing industry players highly vulnerable to significant damage.

Potential Safety Hazards

Industrial food processing utilizes heavy machinery, and this often leads to health hazards for employees in food processing companies. Heavy machinery accidents can and do lead to severe injury quite often. To ensure employee safety, food processing companies need to take prior initiatives, provide proper training, and ensure that all appropriate regulations are met. Since the COVID-19 pandemic, this risk has included exposure to the virus. Social distancing and other precautionary measures are and will continue to be extremely crucial for the foreseeable future. The potential spread of the virus within the company can cause significant monetary losses, further spread of the virus, and, more importantly, the possible loss of lives. The inability to safeguard the health and wellness of employees can take a tremendous toll on the entire food process industry and consumers.

Ensuring Food Safety

With the risk of potential supply chain disruptions, ensuring that processed food is not contaminated or damaged in any way can be highly challenging. Additionally, direct human contact, hygiene disparities within the company, machinery issues, and storage challenges substantially increase the risks. With various regulations and rising consumer awareness about health and safety since the start of the COVID-19 pandemic, these risks are being more strictly scrutinized. Direct human contact can cause exposure to the COVID-19 virus and other contagious diseases. Storage issues and hygiene disparities can contaminate or spoil food – particularly meat and crops – in turn, causing a severe backlash from consumers.

Consumers’ Changing Preferences

The changing preferences of consumers are one of the most significant risks in the food and beverage industry. For many segments of the food processing industry, this risk can have a negative impact as well. Currently, consumer preferences and needs are shifting towards healthy, hygienic, and convenient food. This has led to an increased demand for ready-to-eat meals, which is part of the tertiary sector of the food processing industry. With hygiene requirements and expectations increasing due to COVID-19, food processing companies must take an extra step to ensure they meet customer expectations and consequentially increase customer satisfaction. A major consumer-driven trend in the food and beverage industry is the increased awareness about health and wellness. Consumers prefer healthier food products that retain nutritional value and are conveniently available. The secondary and tertiary sectors of the food processing industry must develop strategic processes that enable them to adapt to the dynamic preferences of consumers.

For more detailed insights into the influence of the COVID-19 pandemic on food processing industry risks, request more information.

Risk Management Solutions in the Food Processing Industry  

The risks mentioned above pose significant challenges for food processing industry players. However, there are a plethora of other risks plaguing the industry and companies within it. To efficiently mitigate these risks, companies should be able to identify, understand, and forecast them. Infiniti’s risk management solutions assist companies in achieving this. Our solutions help companies avoid being blindsided by market risks and suffering substantial losses. There are five steps to efficiently implementing risk management solutions. These steps are as follows:

  • Identifying potential and upcoming risks that clients’ business operations are exposed to and informing them of the same.
  • Analyzing the risks to understand other risks and factors within the organization that may be affected by it, as well as the scope and potential impact of the risk.
  • Evaluating and prioritizing the risks according to severity or urgency to ensure major risks are appropriately prioritized and resolved.
  • Eliminating or containing the risk to reduce or stop the potential impact on the clients’ business.
  • Monitoring risks that cannot be eliminated is crucial to ensuring the risk management solution is effective.

Infiniti’s risk management solutions help companies identify potential risks that can be exploited, and mitigate major risks, to help business continuity. Risk management solutions can also help companies reduce annual spending, optimize warehouse management, and identify processes with high risks. During the COVID-19 pandemic, potential risks in the food processing industry have increased exponentially. With Infiniti’s risk management solutions, food processing industries can develop solutions that mitigate supply chain risks, ensure food safety, and stay ahead in this dynamic and highly competitive industry.

Speak to our experts to learn how Infiniti’s risk management solutions can help food processing industry players mitigate market risks and survive the COVID-19 pandemic.

AI in Food Processing: What Are the Perks?

The food industry has always been slower compared to other sectors in adopting modern technologies. But, spurred by innovative startups, artificial intelligence (AI) may prove to be the exception. For the most part, the sector is a very high volume, low margin industry. Identifying innovative and new ways to gain even the slightest increase in efficiency can make the difference between a facility turning a profit or a loss. Therefore, some of the largest food processing companies are turning to artificial Intelligence technologies in an attempt to improve numerous aspects of the process. Food processing basically involves sorting a large quantity of feedstock and careful inspection of the final product. It frequently requires the constant maintenance of equipment, storage, and workspaces in very specific conditions. Advanced technologies like artificial intelligence can revolutionize the way these operations are carried out. Let’s take a look at how artificial intelligence can revolutionize food processing:Request Proposal

Better sorting

Sorting is one of the most time-consuming processes for most food processing companies. Also, it is one of the most important processes. For instance, every orange, carrot, tomato, potato, apple, etc. is slightly different. A plant might need to sort millions of vegetables based on size, shape, and/or color. Earlier, a majority of the sorting had been done manually, but now, most food processing companies have embraced automation for the processes. Furthermore, with the help of advanced technologies like AI that use cameras, Near Infra-Red (NIR) spectroscopy, x-rays, and lasers, it has become easier to measure and quickly analyze every aspect of the vegetable as it moves along. While older automatic sorting systems were just focused on sorting the bad from the good, machine learning and artificial intelligence created the capability to sort foods for their optimized use.

 Improved food safety compliance

In a food plant just like in a kitchen, good personal hygiene is necessary to ensure food is safe — and the facility is compliant. Cameras installed in the kitchen or food facility ensure that employees are wearing masks or hair protection as required by safety regulations. Violations can be caught and corrected in near real time. For example, KanKan, a subsidiary of Remark Holding recently announced a seven-figure contract with one of the largest state-owned enterprises in China to provide Shanghai’s municipal health agency with facial and object recognition. Their AI technology is currently being used in 200 restaurants and is soon expected to expand to 2,000 facilities. The system, which can be used in restaurants as well as manufacturing facilities, uses cameras to monitor workers and then employs facial-recognition and object-recognition software to determine whether workers are wearing hats and masks as required by the food safety law.

Develop new products

Food processing companies can offer an endless variety of options to customers given the different varieties of spices, flavors, and ingredients that exist. Recipes can be tweaked in an unimaginable number of ways. To decipher what exactly the customer wants is a big challenge in itself, and companies are turning to capabilities such as AI to help with that process. Food processing companies can leverage artificial intelligence to formulate new products. Wonder how? Machine learning and predictive algorithms can be used by food processing companies to model consumer flavor preferences and predict how well they respond to new tastes. The data can be segmented into demographic groups to help companies develop new products that match the preferences of their target audience. This would help companies to predict the success rate of a new product well in advance of it being launched.

Grow better food

AI could help farmers actually grow better food by creating optimal growing conditions and monitor the effects of variables like UV light, salinity, heat, and water stress on basil. With the data, they’re developing “recipes” for the perfect crops. At the farming level, AI is also being used to detect plant diseases and pests, improve soil health, and more.


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Top Five Trends in Food Safety

Food is the essence of life-giving energy to all life forms including humans. Humans, however, have evolved with the consumption of processed and packaged foods. Even then, their system has not advanced to such a level that it can handle any kind of food. Adulterated and infected foods cause a lot of safety concerns amongst humans. As a result, food safety has been on the agenda of various food authorities for food safety. Food monitoring for a long time hasRequest Proposal been dubious and authorities are constantly on the lookout for ways to enforce strict standards for food safety. So what are the top food safety trends that are ensuring our food safety?

Food safety modernization act (FSMA)

After the outbreak of numerous foodborne illness, the US Food & Drug Administration is bringing about massive changes to its regulations. In 2016, FDA released its updated strategy for the implementation and training of FSMA. The strategy outlines foundational rules including Preventative Controls for Human and Animal Food, Foreign Supplier Verification Programs, and Produce Safety.

Changing dining trends

Eating out has become a noticeable dining trend, which has started picking up in the last few years. It also brings about new challenges as restaurants have to serve more customers and have to battle it out for procuring fresh supplies seven days a week. Maintaining food safety while balancing the cost factor and procurement of fresh foods is definitely a challenging task. Companies are turning towards automation to tackle this issue.

Supply chain traceability

After many food scandals including the horsemeat scandal, customers are demanding a high level of traceability on what they eat. Consumers are always on the lookout for fresh, healthy, and locally sourced food and ingredients. In order to make food supply chain traceability a possibility, many food companies are looking towards blockchain technology to provide an easy answer. Blockchain technology can track a finished product back to the origin with ease, which cannot be tampered. As a result, food suppliers can build trust towards their brand amongst the consumers.

Demand for natural and organic food

The obsession with leading a healthy lifestyle doesn’t look to stop anytime soon. Consumers are demanding organic and natural food, and the demand is expected to grow at a rate of 16%, annually. As a result, start-ups are entering this market at an unprecedented rate. They are also bringing in food without artificial preservatives, colors, and dyes. However, the safety of these products can be dubious and so is its shelf life. Suppliers will need to avoid potential consumer health issues and void costly recalls.

Increasing digitization

Kitchens today still rely on conventional pen and paper-based systems that are inefficient, prone to human errors, and are time-consuming. Additionally, such records are easier to forge and falsify. New technologies such as IoT based sensors, digital checklists, and automated monitoring will soon replace this traditional system all over the world. Businesses will be able to control every aspect of routine tasks and compliance management with ease and increase their overall efficiency.

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Food Products Supplier Streamline their Product Offerings Using Market Intelligence Solution

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LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest market intelligence solution for a food products supplier. To meet the growing demand, several food products manufacturers are relying on innovations to improve their production capabilities and increase the supply chain efficiency. Furthermore, due to the increasing concern for food safety, businesses are planning to refine their existing packaging techniques to enhance the quality of the products offered.

“The future of food products supplier will be marked by the entry of new players offering innovations in food products and packaging materials. Also, leading organizations will offer healthy and organic products to meet the relentless demand from health-conscious customers.” says an expert at Infiniti Research.

 

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The solution offered helped the client ascertain the demand for products in the market and identify the competitors’ positioning of the products. The solution also helped the client to gain real-time insights into the market information to minimize the risk of investment decision being wrong.

Additional Benefits of The Market Intelligence Solution

  • Alter products and services based on the customer requirements
  • Gain relevant information about the company’s markets and make an informed business decision
  • To know more, request a free proposal

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Top Trends in the Highly Competitive Weight Loss Industry

Staying in shape, getting fit, being active, and eating healthy is one of the most hyped things in the world. The fitness craze has consumed a majority of the world’s population, with people trying a variety of methods to achieve one single goal: weight loss. People’s willingness to spend considerably to achieve weight loss has created a lucrative market for players in the weight loss industry. The opportunity for weight loss supplement manufacturers, training program moderators, healthcare brands, and fitness equipment manufacturers has opened up significantly as the majority of the world’s population is rapidly jumping on the fitness bandwagon. Numerous reports estimate the weight loss market in the US itself to be worth $66 billion. High rates of obesity, low unemployment, higher disposable income, and sedentary lifestyles are boosting the market for the weight loss industry. As a result, numerous brands have made attempts to enter and gain a foothold in this lucrative market, making it intenselyIR_Brochure competitive. So here are the trends you should be familiar with to gain an upper hand in this market.

Continuing popularity of meal replacement products

Health brands have been successful in placing meal replacement product as a healthy alternative to regular foods. Although the cost runs on the higher side, meal replacement offers benefits of being portable and healthy. A meal replacement product has an adequate amount of protein with lower carb and fat content, which eventually helps in meeting the weight loss goals. It is estimated that the sales of shakes and bars will outgrow the sales of OTC diet pills by the year 2022. The market for meal replacement products is experiencing a healthy growth and is already worth $4 billion in the US.

The rise of complex carbohydrates

For a long time, fats were looked upon with an evil eye as they are responsible for obesity. However, numerous studies have diverted the attention to carbohydrates – simple carbohydrates to be precise. Numerous government food authorities have also credited the survey by warning the public of the dangers of over-consumption of simple carbohydrates. As a result, companies have been focusing on products with complex carbohydrates including whole grain oatmeal, pasta, and bread.

Rise of multi-level marketers

The multi-level market for weight loss products in the US itself is worth $2 billion with multiple companies entering the market each year. The rising cases of obesity are urging consumers to help other consumers to lead a healthier lifestyle. The multi-level marketing in the weight loss industry is picking up the pace because people tend to give more weight to success stories of individuals rather than try weight loss products which are advertised. Companies such as Shaklee, Herbalife, and Isagenix are pioneers of this multi-level marketing programs in the weight loss industry.

The millennial way of dieting

The modern-day weight loss efforts are considerably different than the weight loss programs followed by the Baby Boomers. The Millennials are more focused on clean eating, convenience, exercise, and avoiding sugars and highly processed foods. The limited income of the Millennials would urge them to favor inexpensive and convenient diet plans. As a result, the market for diet websites and apps, OTC meal replacement, zero calorie drinks, and low-fat foods are growing.

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A Must-know Guide to the Latest Technologies in the Food Industry

It takes years of research and study to implement breakthrough innovations in the food industry. But we can proudly say that R&D in the food industry has come a long way. Many advanced technologies that were unheard of probably a decade back are being widely used to today. There are also several inventions in the food industry that have faced a considerable amount of flack in the recent past owing to the related health concerns. E.g. The use of carbon monoxide could make meat look fresher for a longer period; however, it is extremely harmful to the human body in the long run. Lets have a look at the technological innovations and latest trends in the food industry.

(more…)

5 Food Trends That Will Help You Hop on To The ‘Fit’ Bandwagon

healthy foodFood is something that makes most of us go weak in the knees. Over the past few decades, the food industry has seen a drastic boom owing to people’s openness to try and experiment with new cuisines from around the world. However, over the past few years, the food trends have been gradually evolving, and even though pizza is still bae and burger continues to be the king of our hearts, there is a drastic inclination towards healthy eating habits. Let us explore some of the millennial fueled food trends that are the ‘best of both worlds’ for people looking to try out innovative cuisines with a touch of health benefits:IR_Brochure

Buddha Bowlsbuddha bowl

A healthy meal packed with protein, fiber, vitamins, and antioxidants and require zero culinary superpowers – what more could you ask for? Buddha bowls, also known as macro bowls, are one of the healthiest food trends that include colorful bowls loaded with roasted vegetables on a bed of whole grains or rice and sauce.

Sushi Burrito

Sushi burrito or sushito is a ‘marriage made in heaven’ of Mexican and Japanese cuisine element. What makes it one of the viral food trends is that it is highly customizable and loaded with proteins and healthy fat. They are also known to have many health benefits such as lower cholesterol levels, improvements in the cardiovascular system, etc.

Going Vegan

Vegan diet is one of the food trends that has been consistently popular for a quite some time now. This eating habit consists of plant-based eating while completely excluding consumption of meat and animal products. The vast number of health benefits associated with it is what makes ‘going vegan’ one of the ever-popular food trends.

food trends 3

The Avocado Trend

Avocado is one of those food fads that refuses to die, probably because it is one of the food trends that has something for everyone- from avocado toasts to popsicles to the latest addition avocado latte. This fruit is known to be rich in proteins and minerals and has a wide range of health benefits.

 

Coconut is the New Quinoa

Coconut has become one of the popular food trends in the recent times – all thanks to its wide range of health and skin benefits. Also, products such as coconut ice creams, smoothies, flour, and sugar have made it even more popular among foodies and health nuts alike.

 

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Trends and Challenges in the Fast Food Industry 2020

Companies in the fast food industry provide quick and affordable alternatives to home-cooked meal for young adults, working professionals, and families. Click To Tweet

The recent craze of consuming food products that are healthy hasn’t affected the sales of the fast food industry. On the contrary, the fast food industry has found a way to satiate the health and nutritional needs of the consumers by offering healthy versions of their food products. The fast food industry has gained momentum owing to factors such as increased women participation in the workforce, long working hours, and lack of time for meal preparation among several others. Thus, with the increasing preference for convenience among consumers, the popularity of order takeaways or eat in quick-service restaurants has increased. The food manufacturers in the fast food industry provide quick and affordable alternatives to home-cooked meal for young adults, working professionals, and families. The growth in the food and beverage industry can be attributed to technological advancements, streamlined and controlled manufacturing processes, growth in population, and improved cold chain technology.

With consumer demands and preferences changing rapidly, it’s high time for fast food companies to take a look at their strategies to better connect with target consumers. Want to gather more insights into the trends and challenges? Our market intelligence experts can help. Request a FREE proposal today!Request Proposal

Companies in the fast food industry operate on relatively small margins and face flat sales – a result of the constant price wars among the restaurateurs in the highly competitive market. Several trends such as increasing demand for home delivery services, drive-thru options, increasing consumption of technology and web-enabled applications among others are set to drive the growth in the fast food industry, globally. Apart from such trends, the fast food industry faces challenges such as lack of fresh ingredients, increase in consumer demand for healthy food, rising competition, and quick food options such as ready-to-eat meals and products, which can wreak havoc and result in narrower margins for the restaurant owners.

Fast Food Industry Trends

Technology, Drive-Thru, and Demand for Home Delivery

The food industry is increasingly embracing technology, social media, and internet-based mobile applications to reach their potential customers and drive sales and create revenue opportunities. Technology in the food industry has transformed everything right from ordering food, pick-up, and meal delivery. Fast food restaurants are also adopting tech-driven and web-enabled mobile applications to entice customers with a wide range of payment options.

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.Contact US

Fast Food Industry Challenges

The fast food industry will face a slew of challenges as consumers prefer to order and consume food within the comfort of their homes. Factors such as weather conditions, traffic problems, lack of time, and longer working hours will give momentum to alternative options such as meal delivery services, convenience foods like ready to eat meals and ready to cook products. The food service industry also faces a very low customer loyalty due to increasing competition and lack of innovation in products and services. Today, consumers increasingly prefer food providers that follow a Fairtrade practice, offer environmentally sustainable and healthy options, and prefer naturally sourced food products. This makes it extremely difficult for companies in the fast food industry to source these products at a relatively affordable price without logistical problems.

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Top Three Things to Know About the Food Service Industry

The food and beverage (F&B) industry is an essential part of several economies across the globe. Food and drinks are an extremely important part of numerous cultures and demand a social/personal space in the hearts and minds of the consumers. The food service industry is highly fragmented yet immensely competitive across the globe. The food and beverage industry has transformed the eating habits and food preferences of consumers with a highly customer-centric approach and a global network. The global market space for food service and beverages has witnessed phenomenal growth over the years and is dominated by category captains who influence the retail space and consumer prefAsk an analysterences. The food service industry is highly competitive with several players, big and small, competing for consumers’ attention. As a result, the food and drink manufacturing companies opt for multiple channels and different go-to market strategies to capture the market and expand their global footprint.

Food Service Industry – Things to Keep in Mind

The food service industry has been growing at a breakneck speed with the introduction and advancement of food processing and related technologies coupled with the ever changing regulatory compliance landscape. However, there are a few things a distributor, manufacturer, or any stakeholder in the food and beverage supply chain must know, which are as follows,

  • Technology is crucial – Consumers and regulatory authorities across the globe are increasingly emphasizing on food safety and traceability, and regulating food processing and manufacturing in the industry. As a result, players in the food service industry have adopted various supply chain technologies like mobile apps, Internet of Things (IoT), and big data analytics. These mobile and Internet enabled devices have revolutionized the operations and improved supply chain management for food service companies. Big data and IoT enables players in the food service industry to track and manage the food products at various stages in the supply chain

 

  • Ensuring Regulatory Compliance – Today, consumers and regulatory bodies are raising concerns over food safety and packaging standards, resulting in a complex set of food safety standards and packaging frameworks that dictates food production, packaging, distribution, and consumption across the globe. The food service industry leverages technology to improve food quality, track the manufacturing processes and ensure food safety

 

  • Complex Supply Chain – The food service industry has a very complex supply chain that includes everyone right from the suppliers to the manufacturer, distributor, and retailers. The entire journey of ensuring the product reaches the end consumer entails a complex process of passing through different channels and specialized players

The food service industry is a multifaceted web that consists of a complex supply chain, food and beverage manufacturers, regulatory bodies, and technology to ensure that the product is made available to the end consumer.

 

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