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

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