What is the food industry ?
The food industry is one of the most diverse economies in the world. The food industry is made up of agricultural companies, food processing industries and retail firms. These are some of the key players in the global food market. There are many factors that can influence where the demand for a specific type of food will be at a certain time. These include regional preferences, historical events and changes in climate. This article explains some important aspects of the different types of food products to help you understand how they are produced and distributed.
Food Industry Trends- What's on the Horizon for 2022 and Beyond
The Future of Food and Agriculture in the United States
The food industry and agriculture in the United States has seen weather related disasters, labour shortages and changing consumer expectation in the last two years during the pandemic. Experts have predicted that 2022 will see the food industry continue to face some challenges but here are some trends that will be predominant in 2022-
1. Use of technology in agriculture- The agriculture industry should now look to adopt digital tools to increase productivity and also reduce any adverse environmental impact. A few examples can be use of robots, drones and autonomous tractors to make farming more efficient or use of precision farming where irrigation, fertilizers, and pesticides are used depending on the needs of crops, rather than at set times, quantities, and frequencies.
2. Food safety- It is important to note that in 2020, undeclared allergens accounted for nearly 47% of 363 food recalls as per FDA and USDA data. The trend of voluntary food recall as a safety precaution is expected to continue in 2022 but it is also expected that there will also be greater implementation of risk management practices like proper labelling of food and ensuring machinery is cleaned regularly to avoid any cross contamination.
3. Automation in food production- The increase in number of food production companies adopting automation to streamline processes will continue. Adopting automation will ensure less chances of human error, better cleanliness, consistency in product quality and improved production capacity and control. But one has to be careful of the security threats that leave automation practices vulnerable to cybercrimes such as ransomware attacks. The food and agriculture industry need to also focus on prevention and deterrence.
4. Conservation- With several weather related disasters affecting the food production like the drought in the 11 western U.S. states which lead to crops going unplanted and unharvested, 2022 will focus on ways to minimize the use of water and fossil fuels with farming methods like vertical farming and hydroponics.
5. Growth of plant based meats- The meat alternative market saw a surge during the pandemic as people became more health conscious and opted for more flexitarian meals. Now chains like Burger King are coming up plant-based burgers on the menu. It is suggested that meat alternatives could account for 10% of the global meat industry by 2029.
How supply chain affects the food industry
A food supply chain is a very important part of the food industry as it encompasses all of the processes from food being grown till it reaches the consumer. Any disruption the supply chain can lead to decrease the availability of food in the market, resulting in raised prices and decreased access to items. There is a need for optimal food management in all of the areas of the supply chain to reduce food loss and waste.
The pandemic hit the food supply chain hard and low availability of many staple ingredients lead to increase in food prices, more frustrated consumers and lost revenue. While experts predict that 2022 will not be normal, it won't cause as much trouble as the last two years. We have listed below some predictions on how the supply chain will affect the food production industry-
1. Transportation shortages to continue- With the growth of ecommerce in recent years and especially since pandemic, the need for efficient transportation for faster shipping of good has seen an increase. But, as per data, the annual turnover rate in major trucking companies in the United States is 90% and this is likely to continue until changes are made. The problem can be handled by using digital tools to accurately forecast demand and plan accordingly.
2. Decline in staff shortage- The pandemic saw restaurants facing massive worker shortage due to less than satisfactory work conditions and wages. Even the agriculture and food processing sector felt the impact of the shortage. But now with most restaurants and other companies in the food industry making vaccines mandatory and offering better wages and incentives, this shortage is expected to decline.
3. Automation- This year will see food supply chain increasingly opt for automation to keep up with the consumer demand and various supply chain challenges. Opting for intelligent productivity solutions can help supply chain be more productive with fewer workers and also reduce material handling costs, errors and increase safety to create a more efficient food supply chain.
4. Consolidation- Many companies in the food industry may continue to opt for consolidation to reduce competition and strengthen their resources in 2022. Consolidation is more likely in the warehouse and logistics management space with increased mergers and acquisitions to become more competitive.
5. Conservation- Many firms had to put on hold their sustainability initiatives on hold due to the pandemic but now with consumers opting for healthier and environment friendly choices, the focus is back. Agriculture and food processing sectors have to renew focus on conserving water and minimizing the use of fossil fuels.
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Plant based trends coming your way
Pandemic saw a lot of consumers opt for healthy diets and many turning towards a flexitarian meal approach which combined meat with a lot of vegetables and many food industry companies were fast to catch on to the trend. 2022 will see the trend of plant based food in people's diet continue to gain traction. Here are some plant based food industry trends coming your way-
1. Hybrid foods- With many people opting for a flexitarian approach to their meal, companies were not far behind to cash in on the trend. Many meat companies are offering a compromise with hybrid meat-veg food options. Firms like Applegate and Perdue have already added options like burger patties and meatballs that include cauliflower and kale and nuggets and tenders which combine chicken with a blend of chickpeas and cauliflower. The trend of plant based foods is likely to populate the food and beverage industry this year.
2. Vegan dairy alternatives- Dairy products are no longer the exclusive property of the dairy industry as seen recently when a maker of maker of plant-based dairy alternatives won a lawsuit in federal court. The food industry will have to adapt to dairy-free competition. This can be seen from the fact that Waitrose's annual projection named potato milk a trending product for 2022. With more and more consumers opting for plant based alternatives to dairy products like almond, oat, rice, cashew, and even pistachio milk, keep an eye out for innovations in plant milk and other plant based products.
3. Food service- With consumers slowly coming back to fast food and restaurants and the new trend of focus on plant based food products, there has been an increase in the plant based options being offered to consumers. Food chains like Long John Silver's, Panda Express, and Little Caesar's have partnered with plant based brands to release their first modern veggie options. Even gourmet dining restaurants are on moving in on the trend with Eleven Madison Park now offering an all-vegan menu.
4. Healthier meats- There has been severe criticism of unhealthy' plant based meat options as they tend to be very processed and have a high sodium and saturated fat content. But now the food products are being reformulated to cater to growing customer demands. Beyond Meat debuted a new burger formulation that contains 35% less fat. Emerging brands like Nowadays are making food products with cleaner labels which only seven ingredients, at just 120 calories but 13g protein per serving.
5. Fermented food products- Consumers are not strangers to fermented food product options like kimchi, sauerkraut or yogurt. But now innovators are suing fermentation technology to create plant based dairy food products. Brave Robot is using a fermentation technique to make plant based whey for their Perfect Day ice cream line. Fermentation could be the key to cruelty free eating in the future.
Trends in Food Waste and food safety
There has been a growing trend of moving to a lifestyle which produces little to no waste which received a setback in the pandemic but with the world returning to normal there has been a renewed focus on the zero waste life and food products are a big part of the focus. Many plant based brands, like No Evil Foods have been reducing or eliminating the use of plastic in packaging. Experts say that all segments of food manufacturing industry and food business will be implementing practices that ensure food safety and minimal food waste.
With an increase in delivery and takeout options, many employees have said that there is increased risk in home delivery. The food and beverage industry is already hit by staff shortage and the increase in demand for takeout and delivery will have an effect on food safety.
One way forward is automation as opting for digital aids to manage the food business will help in curbing safety concerns and it will also help reduce food waste. Using more automation technology such as robotics will help reduce human labor shortages and to enhance process efficiency. Automation will ensure improved quality control in food industry as errors and defects can be identified and resolved more quickly and it will also enhance traceability as the food product will automatically scanned and its data entered into your system.
How food business will be a thriving industry
With the world returning to normal after the pandemic, there are now many predictions in many food magazines and websites like Restaurantslife about how the food business will thrive in the coming years. We have listed a few trends that will dominate the food business and help the food and beverage industry better its prospects-
1. Customer engagement- As consumers move back to dining in restaurants, they are no longer looking for a formal dining experience. They now want quality service from players in the food and beverage industry which will focus on letting the guests enjoy their meal in a relaxed atmosphere. There is also a shift towards better engagement with the customers by the staff.
2. Sustainability- With a focus on more health and environment conscious choices, consumers are now looking for restaurants and food industry that adopt sustainable and ethical practices. Consumer now prefer restaurants that are transparent about their business choices like where they are getting their food from, how they engage with or support local producers, and how aspects such as food wastage are handled.
3. Going digital- Automation is here to stay and players in the food and beverage industry are now looking at innovations that can enhance the customer experience. Some players in the food industry are looking at big data to guide their menu choices, promotions or brand designs. For example, McDonald's is testing AI for scanning license plates to predict orders and voice assistants to improve its drive thru experience.
4. Loyalty programs- There is an increased focus on loyalty programs to induce customers to spend more and also keep track of their behaviours. The food business has been increasingly looking at digital tools to offer more personalised loyalty programs. There are restaurants which are offering members not just offers for their own brands but also affiliates like dining credit, boxes with seasonal produce and educational workshops.
5. Home delivery- Food and beverage industry players are not just looking at dining in but are now also focused on providing a better at home dining experience with home delivery and meal kits. These meal kits have given the opportunity for many operators to diversify their revenue streams.
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What are the food trends for 2022 and beyond?
A lot of these trends are already starting to take hold.
Trends in Food Production
There have been several articles in websites and food magazines which have featured upcoming trends in food production. Several websites have had articles like Restaurantslife Features looking at trends which will ensure that the food business will continue to grow. Let us now focus on the trends in food production in 2022-
1. Technology growth- Technology had given innovation opportunities for the food and beverage industry with new products such as cellular based food and services like personalised nutrition. Automation like drone deliveries, smart refrigerators, robotics and AI has also eased several management processes in the supply chain.
2. Frozen food- As per American Frozen Food Institute data, 72% of frozen food consumers combine frozen and fresh ingredients. So, frozen food products market continues to grow. In some cases, food produce which has been frozen immediately has more vitamins and minerals compared to fresh because fresh foods lose vitamins and minerals over time while freezing preserves nutrients. Freezing also saves time and money. Hence there has been a proliferation of frozen foods in restaurant and home refrigerators.
3. Delivery and ghost kitchens- While many are not too keen on ghost kitchens, there has been an increase in the number of ghost kitchens as they allow restaurant to operate better with only concerns being labour and food costs. The kit meals have also found a following and, as discussed previously, will continue to be popular. Delivery of takeout and groceries will continue to increase, albeit in a very competitive market. Some fast food restaurants have already formed partnerships like McDonalds partnership with door dash or started their own delivery service like KFC's Grab and Go.
4. Direct to consumer- Not just players in the food and beverage industry but now even farmers are opting for the direct to consumer model as it reduces the layers in between. The model needs a good logistics systems and can save money for storage and distribution. Even brick-and-mortar retailers are now serving customers through e-commerce.
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Food industry trends that are circling back
Trends are circle that keep coming back and going back out of fashion. Every few years, there are trends that will keep coming back. Here are a few trends that are making a comeback in 2022-
Focus on breakfast- It is said that breakfast is the main meal of the day. And now the focus is back on bigger and better breakfast due to work from home boom. With no commute time, consumers now have time to focus on their breakfast and this has been seen in the shift in buying habits.
Retro food- A lot of consumers are going back to retro or comfort foods. A poll found out that of the 2,000 surveyed in the United States, two out of three are reverting to childhood food favorites and eating more comfort food and this has seen an increase in favorites as pizza (55%), hamburgers (48%), ice cream (46%), French fries (45%) and mac and cheese (38%) among others. 69% have said that they will continue to seek comfort food even post pandemic.
Frozen meals- With frozen foods gaining popularity, pre-packaged frozen meals are also enjoying a comeback. When the pandemic forced restaurants to close down, may returned to frozen meals to get by. Players in the food industry were quick to latch on and also offer innovations. Nestle relaunched some of its existing food products and also introduced brand extension, Life Cuisine which offered gluten-free and high-protein' meals.
Food is a big expense for many people.
What are the most important trends in the food industry? How can you make sure your company is on top of the latest happenings?
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Frequently Asked Questions
What is included in the food industry?
The food industry is vast, constantly changing and growing. You cannot imagine the extent of what goes on in this industry without even a glimpse into what it entails. The food industry has several aspects to it, from production to marketing. In order to understand this entire industry, you need to know what is included in the food industry as a whole. The Food Industry is a diverse field that encompasses many different aspects. From production to marketing, it contains numerous steps that all make up one big picture. The foods we eat are not just nutritious, but also delicious and appealing in some way according to our taste preferences. The food industry is vast, constantly changing and growing. You cannot imagine the extent of what goes on in this industry without even a glimpse into what it entails. The food industry has several aspects to it, from production to marketing. In order to understand this entire industry, you need to know what is included in the food industry as a whole. The Food Industry is a diverse field that encompasses many different aspects. From production to marketing, it contains numerous steps that all make up one big picture. The foods we eat are not just nutritious, but also delicious and appealing in some way according to our taste preferences.
Is the food industry a lucrative industry?
Did you know that the food industry is a lucrative industry? How about the fact that food has become more and more expensive as time goes on? It's not just consumers who are feeling this change. The cost of living is rising for the people in the food business, too. This means that it's becoming harder for them to stay afloat in a competitive market without improving their strategies. This article explains how the food industry can increase its profitability by using digital marketing and analytics tools.Did you know that the food industry is a lucrative industry? How about the fact that food has become more and more expensive as time goes on? It's not just consumers who are feeling this change. The cost of living is rising for the people in the food business, too. This means that it's becoming harder for them to stay afloat in a competitive market without improving their strategies. This article explains how the food industry can increase its profitability by using digital marketing and analytics tools.
Do I need to go to school to work in the food industry?
When you're thinking about pursuing a career in the food industry, one of the first questions is, "Do I need to go to school?" You might be wondering if it's just as simple as choosing a culinary school or starting your own business. Time and time again, it's proven that those who have attended culinary schools have more success in their careers. However, attending a culinary school isn't necessary for someone looking to start their own catering business or open a cookbook store. Here are some other things you should consider before making your decision on whether or not you need to study culinary arts and what types of opportunities are available to you.When you're thinking about pursuing a career in the food industry, one of the first questions is, "Do I need to go to school?" You might be wondering if it's just as simple as choosing a culinary school or starting your own business. Time and time again, it's proven that those who have attended culinary schools have more success in their careers. However, attending a culinary school isn't necessary for someone looking to start their own catering business or open a cookbook store. Here are some other things you should consider before making your decision on whether or not you need to study culinary arts and what types of opportunities are available to you.
How has the food industry changed with technology?
Technology has had a huge impact on how we shop, cook, and eat. Technological advancements have allowed for faster shopping and cooking times, more efficient food storage, and the ability to create craveable food that can be replicated across continents at the click of a button. Here are some ways technology has changed the food industry in recent years.Technology has had a huge impact on how we shop, cook, and eat. Technological advancements have allowed for faster shopping and cooking times, more efficient food storage, and the ability to create craveable food that can be replicated across continents at the click of a button. Here are some ways technology has changed the food industry in recent years.