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Ground-breaking Business Trends for Food & Beverage Companies

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September 7, 2020
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Ground-breaking Business Trends for Food & Beverage Companies - Business Connect

Ground-breaking Business Trends for Food & Beverage Companies - Business Connect

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Ground-breaking Business Trends for Food & Beverage Companies

There is always a change of preference, that’s a human nature where people often get bored with choosing the same kind of meal every day. Bold flavors and meal-replacing snacks are always at the lead when it comes to food preferences, health, and wellness, immunity-boosting food. Consumers are more often nowadays, looking forward to nutrition-packed foods. An increase in the demand for healthier, quality frozen food products to fit in with changing lifestyle, more importantly for the maturing millennial generation who are busy in making a
balance between a healthy family and career. The millennial consumers are more “clean eaters” than any other generation and intend to have a strong interest in what they are eating, how is it made, and by whom. Today is a generation that lives in a world where they can instantly access to information and if the consumer is unable to understand or find out about how a product is made and what is it inside it, they simply choose to leave it behind and switches to alternative products made by companies that have a more convincing and genuine commitment to sustainability and improvement of the environment.

Safety, Sustainability, and Transparency is all that matters
Consumers are more into demanding information about the food they eat, food safety is the main thing food and beverage industries focus on and it is now costing billions each year. The industry finds it more important to pinpoint safety issues immediately; from the people who are growing to the manufacturer, distributor, and beyond. The food companies need to be more focused on waste reductions as the consumers are more into demanding sustainable, transparent production and packaging in the products they purchase. As per the customers demand, the quality control and safety of the food products must be at the top.

The Constant Rising Costs and Increased Ambiguity
Growing uncertainty in the marketplace is a matter that is faced by the food and beverages company. Some companies of food may look for smaller warehouses that can manage supplies, but the rising storage costs may be prohibitive. Another uncertainty that includes here is increased labor costs and tightening workforce challenges. The companies are also facing issues with on-time delivery due to the ongoing truck driver shortage.

Innovation and Variation       
Purchasing has vast availability of products, with so many different products that are available for the purchase in a crowd of channels like starting from in-store, farmer’s markets, online, social media, and more. The product innovation and differentiation are considered to be important in the food and beverage companies. Creating some solutions that would meet consumer preferences around sustainability such as edible packaging will be on the growth. The innovative way to automate repetitive processes that provide good opportunities for businesses in the matter of improving production, back-office processes, supply management, fulfillment, and delivery. Adding to that, using acquired consumers and business data for better business decision-making will be implementing a comprehensive digital strategy. 

Merger and Acquisitions
Companies looking forward to spreading their investments across smaller brand acquisitions in accordance to round out product and geographic portfolios versus investing in their own research and development to help in saving time as well as money and reaching new customers. Private Equity (PE) companies that have operated in the consumer brand space will have a need to adjust their strategy along with looking for deals further down the market. The companies will even take on acquisitions in segments that have better prospects as a salty snack food, snack bars, cookies, and ready-to-eat meals, even if they are outside their traditional business.

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