Considering impending legislation, FSMA rule rollouts and a new presidential administration all coming inthe entire food and beverage supply chain could see major changes to their products and operations. Food Dive spoke with a number of experts about the food and beverage industry's biggest challenges in
Here are eight major challenges manufacturers could face in the coming year. Consumers are looking for what they deem to be healthier products, and packaged foods companies have seen sales dip as consumers hug the outer rim of grocery stores rather than buying more of their products from center store shelves.
Perimeter means fresh, natural, and whole foods while center of store foods are thought to be more processed. But many other companies struggle with either luring consumers back to the center store or finding ways to develop enticing products for the grocery store perimeter.
Healthy and clean label vs. Many are now more motivated to purchase products they deem to be more closely aligned with health and well-being, such as products devoid of artificial ingredients, GMOs, or pesticides, Lash said.
This has given rise to cleaner labels and an increase of products in the non-GMO and organic segments, which has put more pressure on major food and beverage companies to adapt to these trends. Kellogg has struggled with this shift already, particularly with its Special K cereal and snack brand, which was previously aligned as a diet aid type product, according to Lash.
Last year, companies like General Mills, Kellogg, Nestle, Hershey, and Campbell all vowed to remove artificial ingredients from all or certain segments of their portfolios.
So the onus is on the larger, more established packaged foods companies to learn from these niche operators and integrate them into their consolidated business. Adapting to shift toward e-commerce Industries like consumer electronics, appliances, toys and games, and other household products are already firmly established in the e-commerce space, but food and beverage manufacturers have overall been slower on the uptake.
Brick-and-mortar retailers and online retailers like Amazon have been investing in grocery e-commerce, but manufacturers themselves are also getting into the e-commerce game slowly but surely. PepsiCo selected a new leader for its own e-commerce expansion in September. As more consumers shift to a preference for online shopping, manufacturers are finding ways to adopt e-commerce as part of their sales and marketing strategies.
And there's good reason for that: At the same time, manufacturers would have more control over their messaging to consumers as they cut out the middle man, the traditional retailer, in favor of direct contact with consumers.
The problem is that many manufacturers add sugar or other sweeteners to products ranging from condiments to pasta sauce, and with more consumers reading product labels these days, that could spell trouble for those manufacturers. Adding value to products Value-added foods and beverages, such as products fortified with vitamins, minerals, or proteinare becoming more popular as consumers look for more than just flavor and price when making purchasing decisions.
Manufacturers are looking for ways to add value to their products in ways that make sense without incurring exorbitant costs or adding ingredients that consumers may not recognize and therefore could reject. Juice is one category that has seen value-added products, as the category has been hit by the same sugar content concerns as soda.
The issue is, by the time some of these products hit store shelves, trends might be abating. Making products more convenient 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.
Snacking innovations have entered categories ranging from cereal to meatand as consumers move away from the traditional three meals per day, more manufacturers may have to adopt similar innovations in the future.
Consumers' tastes are fickle, and targeting them with the right messaging at the optimal place and time is increasingly more crucial.Fast Food and the Problems with Fast Food Derek Tyler Hannah Fast Food and the Effect it has On Our Health The fast food industry has severely changed over the years, how these restaurants started, what are the health factors, and what has caused them to have such great success I.
Fast food is introduced What brought about the idea of a fast .
In spite of the number of threats faced by fast food retailers during the past decades, one must not underestimate the future opportunities which such industry players can take advantage of. In this regard there has been a considerable rise of the restaurant industry in the US.
Six challenges facing the franchising sector management and the industry. For example, fast-food and restaurant franchises are currently outperforming their peers due to the viability of the businesses and increased demand.
Let us help you. Data supplied by. 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.
The array of ethical issues facing the food industry is extensive. It includes fair and just treatment to food industry employees, especially as disproportionate numbers of minorities take jobs in food processing and food service. Issues of food distribution and hunger continue to be.
With now in the past, food and beverage manufacturers can look to the challenges and opportunities that the new year brings. Considering impending legislation, FSMA .