Food Producers Need To Focus On Technology, Health And Sustainability
It is becoming more difficult to be a successful food company. Despite industry-wide revenue growth, major players are seeing their sales shrink, their production costs rise and competition from small brands intensify.
The global pandemic has exacerbated the impacts of changing consumption trends and made it more urgent to tackle some of these issues.
Once, it was beneficial to be big, to have an integrated supply chain and costly capital equipment as a defensive barrier against smaller competitors, those small competitors are now using digital tools, novel routes to market, and other innovations to undermine those defensive barriers, respond to consumer demands and take market share from established incumbents.
There are six key megatrends that will shape the industry for the next 30 years, new research by Lux Research claims. Companies must recognise and adapt to these trends to survive and thrive, the group says. These are:
· Food for health – beyond satiety and nutrition, foods need to satisfy an expanding list of expectations
· Increasing sustainability – corporate statements will not suffice; truly doing more with less must be the aim from packaging to production and distribution
· Incorporating ubiquitous sensing – as sensors get smaller, cheaper, and more powerful, their inclusion in all processes becomes imperative
· Mastering the role of the microbiome – from production methods to diagnostics, mastering this realm will be make-or-break for food companies
· Adapting to new industry structures – growth will come from uncomfortable places like new channels and markets; meanwhile, competitive landscapes get more complex
· Understanding the future of consumption habits – COVID-19 has accelerated some changes, but others were already set to fundamentally alter consumption patterns.
“Food companies will need to adjust and adapt to the six