Here’s How Innovation Is Steering The F&B Industry

Organizations in the foodservice industry have to constantly innovate if they wish to stay competitive, keep ahead of ever-changing customer expectations, and respond to unforeseen events like the COVID-19 pandemic.

Food producers are digitizing their production floors with robotics, E-Commerce, and digital food-management tools. Restaurants are also employing robots for hospitality and cooking. Evolving consumer demands and ESG requirements will continue to impact the industry’s commitments to sustainability and will accelerate the rise of plant-based products. We’ll also experience new and increasingly innovative solutions to address widespread labor shortages and the shifting balance between foodservice and retail products.

Despite the challenges presented by this pandemic, the food manufacturing industry is well-positioned to help its customers adapt through cutting-edge technological solutions.

Below, let’s take a closer look at trends that are primed to dominate the food manufacturing realm this coming year.

E-Commerce

E-commerce has been in the spotlight in the food & beverages industry for a while now. But, the COVID-19 situation further pushed innovations in food supply chains. Food brands utilize digital platforms to offer on-demand online delivery services and reach customers through direct-to-customer or D2C distribution models. Also, the safety concerns during the pandemic are promoting the growth of ghost kitchens or cloud kitchens that offer only food takeout and deliveries. Along with D2C, brands are focussing on omnichannel distribution to improve customer experience and improve sales. Moreover, food & beverage E-commerce helps food manufacturers to reach their customers better as well as ensure availability.

US-based startup Orderscape makes restaurant voice bots that work with Amazon Alexa and Google Assistant. The startup integrates its solution into restaurants’ existing digital order receiving devices such as point-of-sale (POS) devices and tablets, enabling convenient voice-based food ordering for all users. This increases brand accessibility and lets restaurants convert local queries into actionable tasks.

Sustainable Practices And Mindset

With climate change being a hotter topic than ever before, more consumers are striving to support businesses who adopt a sustainable mindset (and shunning those who don’t). Ingredients and packaging provenance are now becoming as vital as the quality of the product. Take Sainsbury’s, for example, which has pledged to reduce its use of plastic packaging by 50% by 2025. As a result of this move, 18.5 million plastic straws will be removed from circulation each year, equating to a 6.6-tonne plastic reduction. PepsiCo is another example - the drink manufacturer is aiming to eliminate all virgin plastic from their branded bottles sold in nine European countries by 2022.

Plant-Based Diet

With the changing times and a sharpened focus on the consequences of our eating patterns, plant-based foods—which have been steadily gaining currency—is set to reach new heights. Add to this a renewed interest in health, and suddenly, potato milk seems a lot more viable today.

While larger food trends like nut-based milk, plant-based meats, and vegan alternatives are seeing new entrants, the global foodscape seems to be going through a renaissance.

Just take a look at the inundation of products in the market. From brands like Hello Tempayy providing an array of plant-based protein options, Imagine Meats, Wakao and Good Dot, making vegan meats on Indian soil, Soft Spot, Liveyumfoods.com specializing in vegan cheese alternatives, and WhiteCub, Papa Cream and Urban Platter that are bringing a range of plant-based/vegan condiments to the fore—one thing is clear: this is no longer a trend, but a way of life.

Functional Food

Consumers don’t just want food that tastes, looks and smells good. They’re also looking at the role particular food items can play in promoting good health, especially in the wake of the pandemic.

Also known as ‘functional foods’, items like vitamin D-fortified orange juice or yoghurt drinks containing probiotics are becoming more popular as consumers care more about what they’re putting into their bodies. They want foods that can deliver multiple things in one bite.

This is backed by research too - the global functional ingredients market was worth an estimated $64.9 million in 2018 and is expected to reach $100 million by 2025. So, if you’re looking to rejuvenate your sales and regain a competitive edge, consider if ‘functional foods’ might be your way in.

Tightening Supply Chains

We’ve seen the recent surge in demand for energy, labour and transport placing significant pressures on just-in-time, cross-border supply chains that keep factories open and shelves stocked. And with supply chain problems set to continue, a key focus for businesses will be tightening their operations.

?????????????????????Being flexible with sourcing and distribution strategies like Kellogg’s, who managed to quickly source a new supplier closer to home despite COVID-19 restrictions.

?????????????????????Modernising manufacturing operations. For example, think along the lines of a smart, connected factory, access to real-time data and full visibility.

Wider Use Of Automation

Of course, certain areas of the food industry like farming, for example have been using automation for years. But labour shortages, inflation and supply chain issues has made automation a priority for other sectors of the food industry like food processing, who are among the last to embrace automation.

Some benefits of automation include:

?????????????????????Improved quality control - when processes are automated, errors and defects can be identified, isolated and resolved more quickly

?????????????????????Increased food safety - you can gain a more granular view of your food manufacturing processes and ensure one process change won’t cause adverse consequences in another

?????????????????????Better efficiency and reduced waste - when deployed correctly, automation can boost efficiency, reduce waste and improve cost efficiency much more than if your processes relied on just human workers

?????????????????????Enhanced traceability - as soon as a product/ingredient enters your supply chain, it can be automatically scanned and its data entered into your ERP system. Not only does this reduce the risk of human error, but it also ensures end-to-end traceability which can improve supply chain management

Innovation Is More Critical Than Ever…

This blog only scratches the surface of trends in the F&B industry. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.