Food and Beverage Industry: Challenges and Opportunities (2022)

Food and Beverage Industry: Challenges and Opportunities (1)

As the pandemic transforms our shopping and eating habits, it has also brought to light the importance of healthy food in our lifestyle. Food is not just for sustenance, but a means to flourish and stay well.
With more consumers turning away from processed foods, food and beverage companies need to rethink their strategy to maintain relevance in a post-COVID landscape.

Food and Beverage Industry Challenges

While companies, both large and small, have been agile enough to adapt to a changing landscape, here are a few challenges faced by the food and beverage research industry today –

1. Health Considerations

Food and market research show how consumers are growing more aware of food-related disorders. This has led to the role of food in the day-to-day progressing from beyond taste to nutrition and wellness.

Many manufacturers have been known to add sugar or other sweeteners to products. The increasing incidence of diabetes, obesity, and allergies has led to dairy, gluten, and sugar consumption being vilified. However, with more consumers reading product labels this will prove to be problematic.

Product managers in the food and beverage market today are having to focus on products without preservatives and additives. The challenge has been creating great-tasting, high-quality nutritional alternatives without compromising quality or taste while maintaining cost-effectiveness.Another nutritional trend on the rise in the food and beverage research industry is the demand for organic food. Growing in concert with the reduction of processed food, there has been increasing awareness of organic food and its positive health impact.

2. Increasing Demand for Meat-alternatives

A rising percentage of the population is becoming plant-forward, reducing their meat consumption. We believe this trend will continue with a diet. This needs to be met with a corresponding increase in vegetarian and vegan products.
This has led to giants in the food and beverage industry such as Sainsbury, Nestle, and Aldi launching meat alternatives at retail outlets. The main checkpoints are taste, texture, and nutrition. However, the challenge has been the time frame. With evolving expectations and demand, consumers and retailers alike are looking for new options.

3. Sustainability

Each year, 108 billion pounds of food is wasted in the United States. Food and beverage market data research shows that sustainability has been a critical challenge faced by the industry.
It is necessary to streamline the supply chain to reduce wastage and figure out alternatives for packaging and energy sources to minimize the environmental impact.

4. Lack of Transparency

With growing ethical concerns, consumers want to be associated with brands that maintain transparency and accountability. International and fragmented supply chains often cause gaps in traceability.

Transparency covers aspects ranging from the source of fresh produce, the kind of farms, the employees, and their working conditions to the type of processing, packaging, and more.

(Video) Overcoming Food and Beverage Industry Challenges

While large brands in the food and beverage industry can cover the gaps, tier two and three brands will have a hard time. This leads to a lack of transparency across the global food supply chain.

Must Read:

Food and Beverage Industry: Research and Opportunities

In light of the challenges faced, the food and beverage industry is working hard to meet evolving needs. With growing research on ingredient pairings, Sustainable to put more sustainable packaging and unique products on the shelves and available online to meet the challenges of growing consumer needs & demand.

Manufacturers have responded by clean labeling their products. This includes highlighting the origin of the ingredients and listing out wholesome recognizable ingredients.

1. Health and Immunity

The pandemic has only served to highlight the importance of nutrition and its role in health and immunity. Consumers are making a more conscious effort to place health in the central position.

Food and market research demonstrates increasing consumer knowledge on food and its role in immunity. With growing awareness of the connection between gut health and immunity, fermented products are gaining momentum in the marketplace.

Consumers are shying away from additives and preservatives, offering incredible scope to develop products that offer health benefits made with quality ingredients and natural flavor. This is an excellent opportunity to hero fresh ingredients and their nutritional benefits.

For instance, kombucha, kimchi, and other fermented foods have been gaining immense popularity through the pandemic. Several homegrown, small brands are developing fresh, high-quality fermented food products at home, sans preservatives.

2. Tech-enabled Transparency

At the beginning of the pandemic, there was apprehension over the safety in food processing and manufacturing centers. According to food and market, end-to-end supply chain transparency will be a recurring theme in 2021 in the midst of the pandemic. Consumers today are on the lookout for brands capable of building trust and confidence with reliable and authentic products.

Food wastage is a massive problem in the industry. Innovation in packaging will help resolve when foods are thrown out or declared unsuitable for consumption. Innoscentia in collaboration with Ynvisible Interactive Inc is developing novel packaging enabling real-time quality monitoring of the food. This solution is aimed at decreasing food waste and identifying spoiled food in time.

(Video) Overcoming Food and Beverage Industry Challenges with Integrated Systems

This offers a tremendous opportunity in rethinking the packaging with invisible barcodes and near-field communication technology.

3. Packaging

With 74% of consumers willing to pay an additional amount for products in sustainable packaging, brands need to get creative, fast. Brands today are rethinking their approach and aesthetics relative to environmental impact. This has led to innovation in eco-friendly packaging materials. While refillable containers and returnable/reusable packaging is not new, it is making a huge comeback.

Brands such as CupClub, Globelet, ReCup, and CupKita are pioneers in this space. However, the upcoming food trend is expanding beyond beverages. Fresh Bowl uses glass containers to serve fresh salads which can be returned to its kiosk post-consumption.

The use of antimicrobial packaging is capable of keeping food fresh for longer periods. Prepared from biodegradable clay this additionally reduces microbial action proportionally decreasing the potential of viral or microbial diseases. However, this is an expensive alternative and there is research underway to optimize this solution.

Edible packaging has come a long way from being ludicrous to be available for commercial purposes. Food and beverage market research show that chitosan is the most effective. It is widely available and possesses natural antibacterial activity. It works as a physical barrier by preventing the direct contact of microbes with food. Additionally, it inhibits the respiratory activity of bacteria by blocking the oxygen supply in the packaging. Primarily used for fruits and vegetable packaging, it is highly likely it will be adopted by restaurants for packaging takeaways.

Bioplastics such as Polyethylene terephthalate (PET), prepared from biodegradable, renewable resources are being extensively used today. PET, produced from feedstocks, has the highest recycling rate and can substitute petroleum-based components. According to European Bioplastics, bio-based PET is an economic and effective form of plastic packaging. With an elastic texture made of robust fibers, it can replace packaging materials for containers, rigid bottles, and films.

4. Plant-based Innovation

The pandemic caused a major shift in eating habits. Data shows that a total of 57% of US households purchased plant-based food in 2020. The pandemic allowed people the time and space to experiment with food and flavor. Food and beverage market research in the US shows 92% of first-time buyers of alternative protein food said they would likely continue purchasing meat alternatives beyond the pandemic.

Food and beverage market research demonstrate that the contributing factors to the rising popularity of plant alternatives were taste and health. Increasing lactose and animal-based food intolerance, animal abuse considerations, climate change, and nutritional benefits offered by plant-based products were other factors.

According to food and beverage market data research, there is a 23% increase in the sale of plant-based meat when shelved next to traditional meat. Impossible burgers, for instance, have grown from being stocked at 300 stores to being available in 20,000 stores in the US.

With an increase in demand for plant-based alternatives, brands like Nestlé are strategically working on expanding their plant-based options. With increasing investments from venture capitalists, the plant-based food industry is seeing massive innovation to meet changing demands.

(Video) Future of Food: What trends are shaping the food and beverage industry?

5. Exciting Flavors

The pandemic served to reduce the distance by making global cuisine accessible. Consumers are expecting more choices and variety that are in tune with a more inclusive, global, exciting culture.

Social isolation led to burgeoning home cooks experimenting with flavor, cuisine, and new ingredients. Additionally, with travel bans and restrictions on dining out, cooking has been therapeutic in most cases. This has led to consumers recreating the restaurant experience using novel ingredients and techniques.

With more focus on health and wellness, ingredients like berries, moringa, and whole spices are likely to see a boom in sales. There is more opportunity in showcasing native ingredients and traditional cooking. Brands are catering to this demand by hero-ing various ingredients and flavor profiles in their ready-to-eat meals, sauces, soups, and meal kits.

With limited shelf space, new products need to be unique and appealing. This has led to innovation using new base ingredients to make their products stand out.

6. Optimizing Yield and Nutrition

Optimizing agricultural yield is a growing opportunity in the food industry today. Researchers are working with artificial intelligence to understand how farmers grow better food by creating optimal growing conditions.

The optimal growing conditions for each crop is unique. Food computers and sensors work together to collect data. Smart farming is a step closer in understanding and improving the yield in controlled environments.

Food and beverage data analysis demonstrate these data points will help optimize the best-growing conditions for different plants with specific targets. Improved flavor profiles and better tolerance to external stressors will lead to higher yield, maximized resources, and reduced wastage.

Several companies are working to monitor the effects of variables like UV light, salinity, heat, and water stress on plants.

Research is underway to identify plant diseases and pests using wireless sensor networks early on. With an accuracy of 98% this technology goes a long way in reducing wastage.

Also Read: 4 Trends That will Encourage Beverage Innovation in 2022

(Video) Industry 4.0 in Food & Beverage

The Road Ahead

We believe the future of the food and beverage industry is being driven by sustainability and consumer preferences. Technological ingenuity, awareness of consumer needs, and innovation will help brands make the most of this opportunity.

The pandemic has allowed people to learn more about their metabolic health, try new cuisines, and ingredients. The draw for exotic, packaged food is being replaced by carefully choosing local, seasonal produce.

Slow cooking, traditional cooking methods, and a return to time-tested methods of boosting immunity with fermented foods and a plat-forward diet are here to stay. Food and beverage startups or large companies need to start by understanding that the pandemic changed the consumer perception of food.

Food data analytics offers untold potential scope to transform the food industry and set high standards for health and quality. This will further revolutionize the customer experience and streamline operations in the food and beverage industry. Building on that and rethinking brand messaging, ingredients, processing, and packaging is essential.
Get started on re-imagining your product offering with Spoonshot. We work by analyzing several thousand data points to uncover high confidence innovation opportunities to help you create exceptional products. Get your free account today.

Food and Beverage Industry: Challenges and Opportunities (2)

Aparna

Spread the love

(Video) Food and Beverage Industry's Challenges

FAQs

What are some challenges and opportunities in the food service industry? ›

Such factors have plagued the industry with a series of obstacles.
...
Food and Beverage Industry Trends You Can Expect in 2021 and Beyond
  • An Optimized Supply Chain. ...
  • Use of Modern Technologies. ...
  • Transparency and Sustainability. ...
  • Waste Reduction. ...
  • Increase in Demand for Plant-Based Foods.

What are the current challenges in food and beverage industry? ›

Food and Beverage Industry Challenges
  • Health Considerations. Food and market research show how consumers are growing more aware of food-related disorders. ...
  • Increasing Demand for Meat-alternatives. ...
  • Sustainability. ...
  • Lack of Transparency. ...
  • Health and Immunity. ...
  • Tech-enabled Transparency. ...
  • Packaging. ...
  • Plant-based Innovation.
25 Aug 2021

What are the opportunities in food processing industry? ›

Fruits and vegetables, poultry and meat processing, fisheries, food retail, and the dairy industry are some of the important sub-segments of India's food processing business.

What are the challenges the food and beverage industry will face in 2022? ›

The food and beverage industry will experience flat to mild growth in overall sales dollars in 2022, driven by price increases across the board. However, the industry is expected to face a decline in overall volume compared to the last two years as COVID behaviors such as pantry loading and reduced mobility subside.

What are the solutions for the challenges faced by the food production sector? ›

Answer. Explanation: The deployment of green business practices – right from the production to the packaging and supply chain management is a crucial solution to tackling the current issues in the food industry.

What is one of the greatest challenges facing the foodservice industry? ›

The Cost of Increased Wages

After you've discovered what sets you apart from the competition, perhaps one of the biggest challenges still facing restaurants is the increasing cost of paying their staff.

What other challenges face the food industry in an era of economic integration and opening markets? ›

Challenges faced by the food industry in open markets:
  • Open markets keep on changing; there is no stable environment in open markets.
  • Due to the global supply chain, it becomes difficult to track food supplies.
  • Large supply network may result in rotten food.
  • A large number of competitors in the global markets.

What are the common problems in food and beverage department? ›

6 Common Problems Faced by F&B Staff and How to Solve Them
  • Peak periods. It is common knowledge in the F&B industry - Meal times between 11.30am to 2pm and 6pm to 8pm are the d-hours of the day. ...
  • Large orders. ...
  • Wrong orders. ...
  • Problems with the food. ...
  • People ordering close to closing time. ...
  • People who don't leave after closing.
8 Nov 2019

What are the challenges and difficulties to food safety? ›

Factors which contribute to potential hazards in foods include improper agricultural practices; poor hygiene at all stages of the food chain; lack of preventive controls in food processing and preparation operations; misuse of chemicals; contaminated raw materials, ingredients and water; inadequate or improper storage, ...

What is the greatest challenge for food safety professionals? ›

The biggest challenge for food safety professionals in the catering sector is the lack of food safety culture in the workplace. In a labor-heavy industry such as catering, management commitment to food safety is crucial, and this commitment must be demonstrated to other employees in the workforce.

Why food processing industry is important? ›

Preservation allows people to ship foods over greater distances, stock them in stores longer, and enjoy them for a greater part of the year with more nutrients intact. Processing can also help to inhibit or destroy pathogens (disease-causing organisms) that may contaminate food.

How do you grow in the food industry? ›

  1. START YOUR BUSINESS THE RIGHT WAY. ...
  2. BOOST YOUR SALES WITH THE RIGHT MARKETING PLAN. ...
  3. USE SOCIAL MEDIA TO CONVERT FOLLOWERS INTO CUSTOMERS. ...
  4. CHARGE THE RIGHT PRICE FOR PROFITS. ...
  5. GROW YOUR LOCAL BRAND AWARENESS IN YOUR COMMUNITY. ...
  6. UNDERSTAND YOUR COMPETITION AND CREATE A STRONG VALUE PROPOSITION.

What is the future of food industry? ›

An increasing global population will have a greater demand for food in 2030. At the same time, greater differentiation will be required due to an aging population and individualisation. Innovation is needed to meet this demand. Good behaviour in the form of sustainability is also an important aspect for food.

How is the food and beverage industry doing? ›

Inflation brings food and beverage consumption back in line

On a nominal basis, consumer spending increased 6% over the prior year through the second quarter of 2022, while real spending—which is adjusted for inflation—dipped 5%, falling back in line with pre-pandemic growth trends.

What is included in the food and beverage industry? ›

The food and beverage industry includes restaurants, cafeterias, cafés, fast-food joints, pubs, delis, food manufacturing operations, catering businesses, food transportation services, and more. Work in this industry can range from packaging to preparing, transporting, and serving food or beverages.

Is the food and beverage industry growing? ›

Latest food and beverage market forecasts: The global food and beverage market size is expected to grow from $5.8 trillion in 2021 to $6.4 trillion in 2022 at a growth rate of 9.7%. The food and beverage market size is expected to grow to $8.9 trillion in 2026 at a compound annual growth rate of 8.7%.

What is the possible solutions to food security? ›

Prevent food wastage by sharing leftovers from home or restaurants with those who are hungry. Reduce the amount of meat you eat. 40% of grain crops globally go to feed livestock and fish. If that grain was fed to humans instead of livestock, we could alleviate hunger from 925 million people.

What are the 7 challenges to food safety? ›

Food Safety Challenges in Foodservice Environments
  • Specification Buying and Receiving Controls. ...
  • Cooking, Serving, and Storing Food. ...
  • Cross-Contamination Risk. ...
  • Personal Hygiene. ...
  • Cleaning and Sanitation. ...
  • Waste Management Practices.
8 Jun 2021

What are the challenges faced by restaurant managers? ›

Below are four of the top challenges that people who work in restaurant management must face day in and day out.
  • Cultural Barriers.
  • High Turnover Rate.
  • Unpredictability.
  • Training. The staff has to be trained to memorize the items and prices on the menu.

What are the 5 most common risk factors and food safety challenges? ›

These are the top five risk factors contributing to foodborne illness:
  • Food from unsafe sources.
  • Inadequate cooking.
  • Improper hot/cold holding temperatures.
  • Contaminated equipment.
  • Poor personal hygiene.

What are the factors affecting food safety? ›

What the Study Described
  • Washing hands.
  • Preventing contamination of food.
  • Using gloves.
  • Cooking food to the right temperature.
  • Keeping heated food hot.
  • Keeping cooled food cold.
  • Reheating food to the right temperature.

Why is food safety important? ›

Access to sufficient amounts of safe and nutritious food is key to sustaining life and promoting good health. Unsafe food containing harmful bacteria, viruses, parasites or chemical substances causes more than 200 diseases, ranging from diarrhoea to cancers.

Why is food safety an issue? ›

According to the Centers for Disease Control and Prevention (CDC), about 1 in 6 people in the United States gets sick from eating contaminated foods each year. Foodborne diseases cause 48 million illnesses annually in the U.S., leading to hospitalization for 128,000 people and 3,000 deaths.

What is one of the greatest challenges facing the foodservice industry? ›

The Cost of Increased Wages

After you've discovered what sets you apart from the competition, perhaps one of the biggest challenges still facing restaurants is the increasing cost of paying their staff.

What are the common problems in food and beverage services department? ›

6 Common Problems Faced by F&B Staff and How to Solve Them
  • Peak periods. It is common knowledge in the F&B industry - Meal times between 11.30am to 2pm and 6pm to 8pm are the d-hours of the day. ...
  • Large orders. ...
  • Wrong orders. ...
  • Problems with the food. ...
  • People ordering close to closing time. ...
  • People who don't leave after closing.
8 Nov 2019

What are the key trends impacting food service establishments today? ›

20 global foodservice trends for 2020
  • Climate change pressure/demand for energy efficiency. ...
  • Single-use plastics ban. ...
  • Zero waste. ...
  • Shrinking commercial kitchen spaces. ...
  • Food delivery market boom. ...
  • The rise (and rise) of ghost kitchens. ...
  • Casual dining slump to continue. ...
  • Big chains and ethics/politicisation of brands.

What is included in the food and beverage industry? ›

The food and beverage industry includes restaurants, cafeterias, cafés, fast-food joints, pubs, delis, food manufacturing operations, catering businesses, food transportation services, and more. Work in this industry can range from packaging to preparing, transporting, and serving food or beverages.

What are the challenges faced by restaurant managers? ›

Below are four of the top challenges that people who work in restaurant management must face day in and day out.
  • Cultural Barriers.
  • High Turnover Rate.
  • Unpredictability.
  • Training. The staff has to be trained to memorize the items and prices on the menu.

What do you think is the biggest challenge in the catering industry? ›

The biggest challenge for food safety professionals in the catering sector is the lack of food safety culture in the workplace. In a labor-heavy industry such as catering, management commitment to food safety is crucial, and this commitment must be demonstrated to other employees in the workforce.

What are the types of food service establishment? ›

The types of food service facilities inspected by this department include:
  • Restaurants.
  • Food stands.
  • Delis and meat markets.
  • Public and private school cafeterias.
  • Mobile food units and push carts.
  • Elderly nutrition sites and institutional kitchens.
  • Limited food service establishments.
  • Temporary food service establishments.

What is the future of food and beverage industry? ›

There is no lack of retailers partnering with meal kit companies, recipe sites, chefs, and brands with gourmet and diet-focusing features. It is predicted to be a leading future trend in food and beverage industry.

What is the future of food industry? ›

An increasing global population will have a greater demand for food in 2030. At the same time, greater differentiation will be required due to an aging population and individualisation. Innovation is needed to meet this demand. Good behaviour in the form of sustainability is also an important aspect for food.

Videos

1. Challenges & Way Forward For Food & Beverage Industry
(Anamind Consulting)
2. What are the top challenges of food and beverage manufacturers in plant floor productivity
(Beverage Industry)
3. Trouble at the Table: Food & Beverage Industry Challenges
(USC Consulting Group, LP)
4. Covid Challenges facing the Food and Beverage Industry
(Flowtrend)
5. Webinar Series: Food & Beverage - Innovation in the Food and Beverage Industry
(Nexsen Pruet)
6. Consumer Trends Shaping The Food And Beverage Industry New
(Virtuesio)

Top Articles

Latest Posts

Article information

Author: Kelle Weber

Last Updated: 12/02/2022

Views: 5331

Rating: 4.2 / 5 (53 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Kelle Weber

Birthday: 2000-08-05

Address: 6796 Juan Square, Markfort, MN 58988

Phone: +8215934114615

Job: Hospitality Director

Hobby: tabletop games, Foreign language learning, Leather crafting, Horseback riding, Swimming, Knapping, Handball

Introduction: My name is Kelle Weber, I am a magnificent, enchanting, fair, joyous, light, determined, joyous person who loves writing and wants to share my knowledge and understanding with you.