Major industry verticals are adversely affected on account of the pandemic, as manufacturers strive to stay their businesses afloat amid what’s being hailed by financial analysts as ‘a situation far worse than the economic upheaval of 2008-2009’. Among the various sectors that have witnessed a downfall, the food & beverage industry seems to possess taken one among the worst hits. within the coming times, the F&B market vendors will got to prepare themselves for the long-term impact of COVID-19, which is probably going to intensify together of the main challenges of food and beverage industry.
Tagged together of the most important marketplaces of the 21st century, the food and beverage sector, within the last few decades, has truly inherit its own. The last ten years specifically chart out a rather distinguished portrayal of the F&B space – the industry having undergone a spate of changes due to ever-changing consumer demands and large innovations. What involves notice here is that the rapid increase within the number of challenges of food and beverage industry.
- The ‘Plastic ban’
The enforcement of the ‘plastic ban’ is rooted in an ideology that has lasted several years amid discussions on international platforms and has now come to fruition. The consistent growth pace of industrialization, of which the F&B sector may be a major arm, has had a disastrous impact on the environment, and has led to eco-friendliness becoming subsequent big mantra out there. Knowingly or unknowingly, the surplus consumption and improper disposal of plastic has come up together of the main challenges faced by food and beverage managers today.
In this scenario, a product that’s tagged as ‘eco-friendly’, quite naturally, has more of a consumer connection and is probably going to accrue lucrative sales than a product that’s popularized to harm the environment. Food and beverage manufacturers and retailers are now striving toward making the food manufacturing process highly conducive to the environment through the adoption of various recycling practices. The deployment of green business practices – right from the assembly to the packaging and provide chain management may be a crucial solution to tackling the present issues within the food industry.
- Increase of health-consciousness among consumers
The increasing incidences of food-related disorders have prompted consumers to cause vital changes in their diet and lifestyle, making them more health-conscious than ever. Automatically, the train of thought is diverted towards purchasing foods without added preservatives which may hamper one’s health. The demand for products that don’t carry the ‘healthy’ label is then sure to reduce, and to remain at the highest , the necessity to eliminate artificial constituents from products has come to the fore together of the main challenges faced by food and beverage managers.
One of the main factors that has led to increased diabetes prevalence is obesity, linked to a serious intake of sugar via processed foods and cereals. This realization has, since the second half a decade, led to consumers shying faraway from products containing artificial sweeteners and other added preservatives.
- The rising concerns about product traceability
Traceability is one among the pivotal challenges in food and beverage industry, not only for record management but also to satisfy rock bottom line – generating revenue for each sector. Of late, consumers are taking increasing interest to understand what goes into their food, that has led ‘ingredient labelling’ forming a serious a part of the packaging process. With charitable trust in food supply chains reducing drastically and awareness concerning glitches within the F&B supply chain since the last decade approximately , end-to-end traceability has emerged together of the newest trends in food and beverage industry.
Having recognized the importance of maintaining precise data records, food processing companies are now on their thanks to deploy advanced technology, like IoT, AI, and therefore the blockchain, for tasks like supply chain analysis, weight measurement, temperature monitoring, etc. Say for instance , global retail giant Auchan, toward the top of 2018, planned to expand TE-FOOD’s blockchain solution during a bid to enhance food transparency.
- The ascent of meat-free & veganism trend
The growing concern toward animals is introduction a change within the food patterns of the masses. With more and more consumers vying for vegetarian and vegan products, the demand for meat and other products has observed a big decline, posing together of the main challenges in food and beverage industry. Social platforms and online information portals have paved the way for animal abuse awareness, and other people prefer purchasing products with labels like “humane-certified” and “cage-free”.
- The optimum level of stringency within the regulatory landscape
While it’s going to be construed as stating the apparent – the very fact is, that the F&B space is extremely stringently governed by regulations. Organizations like the FDA, EPA, OSHA, and FTC are rather diligent in enforcing norms concerning the launch of healthy products, regulating food labels, maintaining a clean, hygienic environment, and therefore the like.
While most companies are known to perfunctorily adhere to the norms, the periodic changes subject to waste disposal, food quality, staple , surplus production, documentation, etc., have cropped up to be one among the main challenges faced by food and beverage managers. Often, the continuously changing reforms have led to companies recalling food products from their stores.
- The increasing complications of inventory management
Given the limited time period of food products, inventory management has come up to be one among the present issues within the food industry. The perishability factor is liable for incontrovertible fact that F&B inventory is very vulnerable to foodborne pathogens and more, if not stored hygienically. This has prompted manufacturers to adopt new software to alleviate these issues, as long as the presence of foodborne bacteria may have a disastrous impact on the company’s reputation. Amid this backdrop, food pathogen testing market will stand tall together of the foremost profitable arms of the worldwide F&B industry.
- The pervasive presence of eCommerce
An online presence is one among the main challenges of food and beverage industry, considering that buyers are more tech-savvy and socially informed, because of the web . While core industries, like appliances, electronics, textiles, and other domestic products have already established their presence within the commerce domain, this sector has been relatively slow on the maintenance .
- The present impact & forecast aftermath of the COVID-19 pandemic
The F&B sector has faced the worst brunt of the coronavirus thus far . Right from the manufacturing and provide chain and restaurant sector to food service companies and food delivery firms, the F&B industry has been wearily coping up with the pandemic. Countrywide lockdowns have prevented employees from working in factories, severely impacting the availability chain. With farming and agricultural activities taking successful , the fear of food shortage looms large. Petrified with the extended lockdowns, it’s been observed the masses resorted to panic buying, creating further food shortage and a serious disparity between those who can afford to stockpile on items and therefore the ones who cannot.