Published Date: 2019-06-05 | Views: 48 | Food & Beverages
Food and beverage is one of the most important industries in the world, considering that food is one of the basic necessities of humans to survive. Strict regulations and policies have led many food and beverage companies to change the way they manufacture, produce, market, sell, and promote their products. Continuous rise in population, high demand for nutritious foods, increasing interest in exotic cuisines, and food exploration activities are anticipated to push the demand in the global food and beverage industry.
There are some crucial trends expected to shape the global food and beverage industry. For instance, the rise in development of innovative online ordering features due to increasing use of smartphones and the internet and technological development has been significant in helping food and beverage vendors to appeal to consumers and expand consumer base.
Growing Concerns over Nutrition for Babies to Support Global Baby Food Market
The global food and beverage industry comprises prominent sectors such as dairy products, baby foods, food supplements, organic foods, and nutraceuticals. High global birth rate, rapid urbanization, increasing parental concerns regarding nutrition for their babies, and growth in the percentage of working women are some of the factors expected to fuel the demand for baby food. According to analysts, the demand for nutraceuticals is foreseen to increase with the rising risk of diabetes, obesity, cholesterol issues, high blood pressure, and other health problems.
The growth of the global organic foods market is prognosticated to improve with increasing environmental concerns and reduced use of harmful chemicals and pesticides and more use of reusable resources in farming. The demand for dairy products could improve due to high awareness about their nutritional benefits and changes in consumption and dietary patterns of consumers.
Companies Observed to Take Initiatives to Improve Communities and Industry
Based in Switzerland, Nestlé is a multinational food and beverage behemoth that is popular for its innovations and initiatives related to the industry. In May 2019, it announced that its human rights training for employees developed together with the Danish Institute for Human Rights has been made available to all. PepsiCo, a US multinational food, snack, and beverage corporation, is one of the prominent players in the industry. In May 2019, it partnered with the National Restaurant Association Educational Foundation for training the young and reentry population in Chicago, Illinois to help them make careers in the foodservice and restaurant sectors.
American food processing company, JBS is another major player in the food and beverage industry. In May 2019, it invested $95 million to expand its beef production facility in Grand Island, Nebraska. As part of the expansion project, the company has invested in facility reconfiguration, temperature-controlled harvest floor, and new and improved animal handling facilities. US-based multinational food corporation, Tyson Foods completed the acquisition of European and Thai businesses from BRF SA in June 2019. The acquisition will help the company to support its growth strategy as it looks to expand value-added protein offerings in global markets.
Kraft Heinz Company and Anheuser-Busch InBev are other leading players in the global food and beverage industry.
Trend of On-the-Go Foodservice
According to the Technomic 2018 Generational Consumer Trend Report, younger consumers are observed to increase the demand for foodservice more than baby boomers. Furthermore, Gen Xers and millennials are observed to look for social settings and entertainment in the foodservice industry. An infographic of the report shows that 38% of Gen Z consumers eat food from foodservice on the go more often now than a couple of years ago, followed by 30% of millennials, 12% of Gen Xers, and 6% of baby boomers. Overall, 20% of the respondents in the survey said that they use on-the-go foodservice more often now than two years back.
Online Ordering to become More Common than Ever
With changing consumer tastes and improving awareness about ethnicities and ethnic foods, consumers have been strongly demanding the high-touch value of service. On the other hand, they have been continuously looking for more convenience, especially in terms of food ordering and delivery, and improved dining experiences. This is where technology has played a big role in expanding consumer base or building one. Today, food and beverage companies are grabbing attention by using technology that scores high on entertainment and convenience factors. iPad menus and online ordering are among key features provided to consumers in today’s world of technological advancement.
Food and beverage vendors, restaurant chains, and fast-food companies are anticipated to focus on providing a single app or online ordering via mobile device to reduce the need for multiple apps. The trend of online ordering through Twitter, Facebook, and other social media platforms with the help of chatbots is expected to continue in the coming years. Other features such as text-to-join allowing fast and easy enrollment of customers in frequent-user and loyalty programs could also be commonly adopted in the global food and beverage industry.
Below are some important percentages to look at to help understand the impact of technology in the food and beverage industry.
● As mentioned in Nestlé Professional’s Food and Beverage Industry Trends 2019 report, 70% of consumers order food online
● 65% of these consumers use a mobile app, whereas the remaining 35% use a desktop or laptop
● The report also mentions that 40% of consumers find interactive tabletops highly appealing
● An infographic from the Technomic 2018 Generational Consumer Trend Report shows that 39% of consumers would order food using a mobile device
● The infographic also shows that 88% of the respondents in the survey owned a smartphone
Researchers expect the lunch segment to lead daypart trends in the global food and beverage industry. According to the Technomic 2018 Generational Consumer Trend Report, 43% of lunch meals of Gen Z consumers are purchased from foodservice, followed by 41% of lunch meals of millennials and 34% of lunch meals of Gen X consumers. Baby boomers said 27% of their lunch meals are purchased from foodservice.
2019 Food and Beverage Trends
Sustainability: Food and beverage companies and even governments are looking to use innovation to convert food wastage into usable material and invest in resource-efficient technology. Sustainability has become the need of the time in the global food and beverage industry. Initiatives related to efficient water usage, reduction in carbon footprint, and decrease in plastic use could be taken to solve issues related to sustainability.
Label Transparency: In 2019, ‘free-from’ foods and clean ingredients are predicted to show dominance in the global food and beverage industry. Consumers may be willing to choose substitute food and beverage products that don’t have artificial ingredients. Furthermore, some of them could be willing to pay more for such products.
Increased Snacking: Food and beverage companies are foretold to take advantage of the rising snacking trend among consumers. A decent percentage of consumers are expected to snack over three or more times a day, and most of them could do so to gain nutritional benefits. Health awareness has changed the way people snack. While there are still consumers that eat unhealthy snacks, others make sure they consume something nutritious between meals.
Foodie Generation: Even if the consumer is not foodie, the trend of exploring new tastes and cuisines is expected to become prominent in the global food and beverage industry. Food companies, marketers, and chefs are encouraging consumers to try innovative food textures and flavor combinations as they seek new experiences. They are also looking to attract consumers by offering unexpected food pairings.
Purposeful Brands: Food and beverage vendors are anticipated to become more connected with consumers and their societies in the future. Some of them are expected to take a stand against social issues such as gender inequality. They could voice their opinions to contribute to solve societal problems related to diversity, ethnicity, and other subjects. This is prophesied to highlight purposeful brands in the coming years.