5 Innovative Food Industry Companies To Watch Out For This Year

A Post-pandemic Overview of the U.S. Food Industry

In 2019, the restaurant industry in the United States grew at 3.6%, with a total sales volume of $863 billion. The National Restaurant Association predicted an even higher growth rate of 4% and sales of $899 billion in 2020. But this was before the Covid-19 pandemic struck, dealing a rude blow to the food industry in the US and across the world. By the end of 2019, the growth and expansion plans of most food beverage businesses were set back, while total sales figures plummeted to $659 billion in 2020. Over 110,000 restaurant and food beverage business in the US were forced to shut down due to lockdowns and the economic slowdown.

However, the US restaurant industry is now on the path to recovery. The National Restaurant Association has predicted that sales figures will touch $898 billion in 2022, the number the industry was supposed to meet in 2020. This is a rise of over $99 billion over the sales figures of 2021. As the Sun smiles brighter on the industry, restaurauteurs expect to see an improvement in gross employment numbers as well, with the sector predicted to generate 15 million jobs by the end of 2022.

As for consumer behavior patterns observed in the post-pandemic market, restaurants are expected to benefit more from takeout and food delivery services, compared to dine-in services. According to a Deloitte survey, 40% of consumers said they are more inclined to online ordering, food delivery and takeout services, along with at-home food consumption.

Top 5 Trends Shaping the Industry

The internet has had a profound impact on all businsses, and the food beverage industry is no exception. Technological innovations and the internet have changed the way consumers learn about, and purchase food and beverages. Moreover, the rise of social media has given consumers a platform to share their experiences with brands and products. While the food industry has witnessed tremendous churn in the last couple of years, these are the five top trends shaping its future-

1. Food Delivery- One of the most important impacts of the pandemic on the restaurant and food industry is the growing popularity of food delivery services. According to a report by StockApps, in 2020 alone, the food delivery market grew by 27%, while the total revenue generated by food delivery businesses stood at $151 billion. The sector is expected to grow further to $164 billion by the end of 2022.

2. Sustainability- Consumers are becoming more health-conscious and they're now more focused on Healthy Eating than ever before. Foods that are natural or organic are increasingly becoming a popular choice among consumers, prompting many in the food industry to introduce healthy and sustainable options. Moreover, with concerns about plastic pollution on the rise, sustainable packaging is becoming an important factor for consumers when choosing food and beverage products.

3. Personalization- With so many choices available online, shoppers now expect retailers to offer products that are personalized and customized just for them. They don't want to sift through reams of irrelevant options and want exactly what they're looking for, quickly and easily. Retailers are using data mining and data analysis techniques to collect information about shopper preferences in order to create personalized shopping experiences, both online and offline.

4. Automation- Technological innovations are reshaping how the food industry and food manufacturing businesses function in the modern world. From food processing to food safety, supply chain and inventory control, both large and small businesses can automate most of the key processes involved in running a foodservice establishment. According to Research and Markets, the food automation sector is expected to grow at an annual rate of 9.5% over the next five years, across the world.

5. Ghost Kitchens- The rise of ghost kitchens is one of the top trends shaping the restaurant industry. These commercial kitchens are designed for delivery only, and they're becoming increasingly popular as more consumers order food online. There are a couple of factors driving the growth of ghost kitchens. First, there is an increasing demand for food delivery and takeout as busy lifestyles leave consumers with less time for cooking. Secondly, the rise of third-party delivery apps like Uber Eats and GrubHub have made it easier than ever to order food from favorite restaurants without having to pick up the phone. And lastly, restaurateurs are looking for ways to cut costs and streamline operations, and ghost kitchens provide a perfect solution.

Let's now take a look at some of the companies in foodservice that are changing the way we produce and consume food.

Food Industry Game-changer No. 1 - Plant Power

Plant Power Fast Food produces sustainable, plant-based fast-food alternatives that are delicious and environmentally-friendly, requiring fewer natural resources for production. According to Plant Power, Americans consume 50 billion hamburgers every year and it takes 58 gallons of water to produce just 1/4 lb of beef for one hamburger. Imagine the amount of water food companies need to produce 50 billion burgers!

For plant-based burgers, businesses require 99% less water, 46% less energy and 93% less land. And Plant Power promises a 100% plant-based menu with no artificial flavors or colors in their food. The company even uses furniture made from renewable bamboo and recycled material instead of wood. Even the packaging material is apparently 100% compostable.

Food Industry Game-changer No. 2 - RightRice

Rice, one of the most popular staple foods across the world, now has an alternative made from vegetables. RightRice, a California-based food production company, specializes in developing different rice alternatives. Its products promise more protein, fiber and significantly lower quantities of carbohydrates. These properties have also made RightRice a popular choice among consumers looking for healthier alternatives to their staple grain.

Founded in 2017, RightRice has seen a 4,400% growth in internet searches in five years. The company, which has raised $5.5 million in funds to further its expansion plans, has been consistently ranked among bestselling products on e-commerce platforms such as Amazon.

Food Industry Game-changer No. 3 - Hungryroot

Hungryroot is a food beverage service provider, powered by artificial intelligence tools, that brings daily groceries to the customer's doorstep. The company uses predictive analytics to understand customer behavior and purchase patterns in order to assist them with meal planning and Food Nutrition support. It then uses this information to custom-deliver groceries and ingredients needed for individual diets. The company promises to save time, reduce costs and create a sustainable retail supply solution to deliver customized goods directly to customers.

Launched in 2015, the company has now become a leader in specialized grocery delivery, using predictive analytics and personalization tools. Hungryroot promises to curate personalized experiences for each of its customers, and this unique proposition has helped the company attract huge investments.

Food Industry Game-changer No. 4 - Yummy Bazaar

Yummy Bazaar is a company that curates the home delivery of gourmet foods from different countries for consumers in the US market. It offers a selection of 1,500 authentically sourced speciality food items from across the world for consumers in the United States. With an aim of bringing the authentic tastes of different geographical settings to its customers, Yummy Bazaar sources locally produced food from countries such as France, Japan, Italy, Spain, and Southeast Asia. Food curation and selection lie at the heart of this business, along with a focus on customer service.

Food Industry Game-changer No. 5 - Pod Foods

Pod Foods is a full-service wholesale marketplace that connects retail businesses with the brands these retailers sell. Pod Foods is driven by data, with the help of which it creates unique selections of the products that individual retailers may buy at the marketplace. The system helps businesses reduce their inventory wastage and optimize their stocks. Moreover, Pod Foods promises on-time delivery at any location in the US market.

Pod Foods has a wide networks of food manufacturers, retailers, food scientists, merchandisers, traders, cooks and bakers, along with trade-show planners who help retailers and whole-sellers find each other and create a well-oiled demand and supply chain.