BLOG

Beware of these challenges before you bet on the wrong horse in the food and beverages industry

Oct 26, 2017

Globalization has not only made the world a smaller marketplace but has also given the opportunity to people to explore various local cultures and food habits. This has given various companies in the food processing industry the opportunity to enter the market and offer customers with various food options from around the globe.  However, the growth in knowledge and information has made customers more inclined toward healthier food habits lifestyle practices, which has become a major setback for food processing industry, especially in processed food market. Have a look at the challenges faced by the food processing industry before you make investments in this sector:Free demo

Health and Wellness Over Dieting

Gone are the days when dieting was a trend in healthcare. At present, there is increasing awareness among customers to choose a healthy food habit over starving themselves. Artificial ingredients and additional preservatives are considered a “big no-no” by many of the customers. Prominent companies like Kellogg, Nestle, General Mills, and Campbell have already started to take measures to remove artificially prepared ingredients from all or certain segments of their portfolios.

Organic is the New Health Icon

There has been a major shift toward organic food products in the recent past since it is a healthier alternative. Recently, many organic food products manufacturers have started entering the market due to its high growth prospects. These new suppliers are now eating up a majority of the total market share; thus, prompting many existing big players in the food processing industry to acquire these companies to secure their market shares. A few examples of larger companies expanding their portfolios with natural and organic products are General Mills and Annie’s, Hormel and Applegate, Kellogg and Kashi, and Mondelez and Enjoy life, etc.

Brick and Mortar to E-Commerce

Companies in the food processing industry have been slow to adopt e-commerce platforms when compared to players in other industries. Though many online retail giants like Amazon have identified this gap and have started investing heavily in the grocery e-commerce, the manufacturers have themselves started to understand the trend and invest in this segment.

Unfriending processed food Products

There is a radical change in the mindset of customers in the food processing industry. The center store shelves are mostly occupied by processed food products, which are now being removed from the shopping carts of customers owing to the trending healthy lifestyle practices. This has come as a major blow to the food processing industry as many of the prominent players had invested heavily in these segments. It is high time that the companies recheck their portfolios of investment and concentrate more on organic and healthier food products that are garnering more popularity.

To know more about the trends in the food processing industryGet more info

Related Insights:

Ready to Harness Game-Changing Insights?

Request a free solution pilot to know how we can help you derive intelligent, actionable insights from complex, unstructured data with minimum effort to drive competitive readiness, market excellence, and success.

Recent Blogs

Emerging Applications of Artificial Intelligence in Medicine

Emerging Applications of Artificial Intelligence in Medicine

The main aim of artificial intelligence in medicine is to mimic human cognitive actions which is directly or indirectly bringing pioneer changes in the field of healthcare. Artificial intelligence in healthcare simplifies the processes of healthcare organizations as...

read more
HR Technology Trends Redefining the Modern-Day Workforce

HR Technology Trends Redefining the Modern-Day Workforce

In 2020, we witnessed rapid changes in workplace structures and business processes amid the pandemic outbreak. Advanced HR analytics solutions proved their potential amid the uncertainties by playing a crucial role in helping businesses understand and engage with a...

read more

Industries

Our advanced analytics expertise spans across industries, sectors, and functions, which enables us to deliver robust, agile solutions to all our clients. These are our core competencies, formed through years of experience.

Insights

Our free resources shed light on our extensive expertise and equip you with information to accelerate decision-making, growth, and innovation.