Consumers aren't as focused on foods fit for dieting in terms of cutting fat and calories as they once were. Newer markets, changing consumer spending, increasing food prices, global appetite, and advanced technology are slated to bring about extensive changes in this sector in the next few years. 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. This has favored the demand for natural, healthy, food products, pushing organic rice protein market trends. 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. Food and beverage manufacturers today need to maintain their reputation with regards to ethical treatment of animal concern. Social platforms and online information portals have paved the way for animal abuse awareness, and people prefer purchasing products with labels such as “humane-certified” and “cage-free”. Food and beverage manufacturers and retailers are now striving toward making the food manufacturing process highly conducive to the environment through the adoption of numerous recycling practices. Wonder how our customized analytics solutions can help you deal with the challenges in the sector? This holds true for the F&B industry as well, seeing that people are likely to practice social distancing for a while now, in lieu of what is considered the ‘new normal’. Undeniably, the challenges faced by food and beverage managers are dime a dozen, owing to the ridiculously fierce competition and the fact that a single change is bound to affect the entire supply chain. On this note, companies have come up with meat-free alternatives to keep the retail chains running. Last year, in August, nine Japanese companies vowed to end testing on animals, post discussions with the PETA U.S. Manufacturing products that vouch for animal safety has become one of the prime challenges for food and beverage industry, as food manufacturers must maintain their reputation with regards to ethical treatment of animal concern. Yet another trend that forms the crux of the challenges faced by food and beverage managers is the rising demand for organic food. With an estimated 3,820,737 positive cases globally, as claimed by Worldometer, the COVID-19 has sent ripples of fear across the masses, destroying not only lives, but also the economies of most countries, given the stringent enforcement of lockdowns across the globe. While it may be construed as stating the obvious – the fact is, that the F&B space is very stringently governed by regulations. With major organizations like the WHO and FDA coming out against high sugar intake, the latter recommending a cap of no more than 10% of daily calories, more consumers are turning away from foods that are high in sugar, particularly soda. Today consumers have become more tech-savvy and digitally informed and this has raised their expectations. This has favored the demand for natural, healthy, food products, pushing organic rice protein market trends. The growth of snacking among consumers has caused manufacturers to rethink the design and packaging of their products to make them more convenient and appropriate for eating on the go. Food processing industry players have started to shift their focus to identifying and mitigating potential risks, so that they may quickly recover from this global crisis. Citing an instance of the same, Reliance Industries’ retail arm, Reliance Retail Ltd., has made it to the headlines for planning to test its food and grocery app prior to the venture’s commercial launch. Supporting this school of thought is the fact that food products are judged based on not just the quality, but also the nutritional content. Real World Evidence Analytics. The drastic reduction in the demand for processed foods has fueled the organic food market, increasing awareness levels regarding natural foods and their positive health impact. 1. That trend will catch on more as similar announcements follow in 2016, which will be critical if manufacturers want to stay on top of this growing trend. Request a FREE proposal to know more about our portfolio of advanced analytics solutions. Virginia Lee, senior global beverage analyst at Euromonitor, points to Coca-Cola and other soda companies’ push for mini-cans as a way to lure consumers back to soda, as smaller portion sizes generally contain less sugar per can. But the consistent changes with respect to surplus production, waste disposal, quality of food, raw material, and documentation are emerging out to be major hurdles for food and beverage manufacturers. Being a consumer-driven industry, this industry is facing serious challenges with the change in [...]. The increasing incidences of food-related disorders have prompted consumers to bring about vital changes in their diet and lifestyle, making them more health-conscious than ever. "There's just been a huge amount of activity in this space, so that's going to be a major challenge for how manufacturers and retailers within the food industry adapt to this new business model in which shelf space means something entirely different when it's online as opposed to walking down the aisle at the grocery store," said Jared Koerten, senior food analyst for U.S. packaged foods at Euromonitor. The issue is, by the time some of these products hit store shelves, trends might be abating. This realization has, since the last half a decade, led to consumers shying away from products containing artificial sweeteners and other added preservatives. The optimum level of stringency in the regulatory landscape The current impact & forecast aftermath of the COVID-19 pandemic. Countrywide lockdowns have prevented employees from working in factories, severely impacting the supply chain. Social platforms and online information portals have paved the way for animal abuse awareness, and people prefer purchasing products with labels such as “humane-certified” and “cage-free”. Automatically, the train of thought is diverted towards purchasing foods without added preservatives that might hamper one’s health. The widespread expansion of food supplement ingredients market is an apt example justifying the aforesaid. Another major challenge that the food and beverage industry is going to face in 2020 is the challenge of improving online visibility. 5. The drastic reduction in the demand for processed foods has fueled the organic food market, increasing awareness levels regarding natural foods and their positive health impact. Contact our offices, Case Studies The dramatic no-show of consumers from the ‘center of store’ aisle products also demonstrates that consumers prefer to stay away from packaged goods, which is why brainstorming strategies to combat the increasing demand for organic products is one of the major challenges faced by food and beverage managers today. Another environment-related constituent that forms a part of the present challenges of food and beverage industry is the issue of waste management. Despite the consistent challenges of food and beverage industry, it is predicted to show healthy gains in the future. While most companies are known to perfunctorily adhere to the norms, the periodic changes subject to waste disposal, food quality, raw material, surplus production, documentation, etc., have cropped up to be one of the major challenges faced by food and beverage managers. Petrified with the extended lockdowns, it has been observed the masses resorted to panic buying, creating further food shortage and a major disparity between the ones who can afford to stockpile on items and the ones who cannot. This has posed a serious challenge on the food and beverage industry. Undeniably, the food industry generates a considerable amount of waste, right from sourcing the raw material to food retailing and distribution. Bringing to market new products that align with emerging consumer trends in a timely manner is difficult for many food and beverage companies as the process of creating new, relevant products and moving them through R&D, testing, and marketing to retail takes time — often more time than companies would like.