Three Challenges Facing the Food and Beverage Industry

By CIO Applications| Friday, October 23, 2020

The food and beverage industry is looking to develop sustainable packaging and exceptional products to meet the growing consumer demand and complexities.

FREMONT, CA: Product traceability and company transparency are essential for consumers, particularly millennials. They buy different kinds of food with different flavors, prefer snacks instead of traditional food, and want to know where the food comes from.

The food and beverage industry is looking to develop sustainable packaging and exceptional products to meet the growing consumer demand and complexities. Manufacturers are focusing on placing visibility on the origin of the products and producing it with clean labels, which lists only a few recognizable and wholesome ingredients.

Company Acquisitions to Accelerate Advancement

Many big companies are acquiring small companies for innovation, sustainability, CSR, and at times, for simple healthy ingredients. Small companies can teach bigger companies to simplify operations, encourage employee diversity, make changes to optimize sustainability, create an online presence via social media networking, and strengthen the e-commerce platform.

The Rise of the Cannabis Industry

The cannabis market has become popular in the food and beverage industry as consumer demands grow. CBD is introduced in products including beverages, candies, and even pet food. However, the legal status of specific products is unclear. Navigating the market can be difficult as every state has a regulation for the cannabis industry, which changes continuously. Thus, the food and beverage companies need to be alert and aware of consumer behavior and trends to gain a competitive advantage.

The Impact of COVID-19

Although managing supply chain disruption is common for manufacturers and industrial companies, the COVID- 19 pandemic has made it crucial for process and operations to adjust to the current situation. Manufacturers must understand the consumer’s outlook and introduce changes to reduce further disorder in the supply chain.