Food and Beverage Industry: A Comprehensive Overview
Food and Beverage Industry Overview The food and beverage industry is going through rapid transformations; 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 […]
Food and Beverage Industry Overview
The food and beverage industry is going through rapid transformations; 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.
Food and Beverage Industry Trends 2018
With several trends constantly moving through this industry, such as the booming demand for new and exotic flavors and the preference for healthier foods, it is very important for you to have a better understanding of what is currently in demand to sustain the growth of your company. Here’s the list:
Shifting customer preferences
Customer preferences across the globe have been changing, with bold and exotic flavors and healthy food products ruling the top of the list. Food home delivery is one of the popular trends that will continue to evolve over time. Similarly, convenient packaging, such as bowl-based preparations featuring quinoa, kale, and more, will be in demand since the consumers of today are looking for quick but healthy eating options. To stay on the top of these shifting preferences, understanding the lifestyle of customers will be essential for aspiring food and beverage companies.
Digital transformation has brought a significant change in the sales percentage of the food and beverage companies. Today, sales through own sites and third-party e-commerce platforms form the majority of the total revenues. The demand for subscription-based food services and online delivery will continue to soar as consumers now prefer doorstep delivery. Since the home delivery option is convenient and widely popular, this service is expected to grow in demand in local markets as well.
Acquisitions and mergers
Food and beverage companies are expected to introduce healthier products and ingredients to their existing list of foods and drinks. To do this they need to expand what they are offering through mergers and acquisitions. Today, we are easily able to see instances where established companies are acquiring businesses that are producing the type of ingredients or foods they are looking for. These acquisitions require lesser cost than investing the time and resources in research and development for developing newer products.
Social and environmental responsibility
Environmental impact and social responsibility are perhaps the biggest challenges facing all business owners in this industry. Therefore, it is very important for the food and beverage companies to realize that the system of food production is probably one of the biggest contributors to greenhouse gas emissions. It is high time to consider new food sources and alternative energy to mitigate the challenges caused by land erosion, natural resources depletion, deforestation, massive land and water pollution, water scarcity, etc.
Lack of traceability
Today, one of the biggest challenges this industry is facing is that of traceability. Global and fragmented supply chains can lead to several challenges like multiple small stakeholders that will lead to a gap in traceability. For big brands, it is easy to have a pretty good understanding of their tier one suppliers. But for tier two and three brands, keeping accountability and having transparency is very challenging. This causes a lack of transparency across the entire food supply chain, which is now a global issue.