|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Novelty, sustainability, transparency and convenience: The way forward for F&B
|
|
Thursday, 25 March, 2021, 12 : 00 PM [IST]
|
|
Ashish Bajpai
|
With a new normal setting in organisations around the world are grappling to deal with the changing trends. Food and Beverage manufacturing companies are also having to navigate through this very uncertain times. As a new decade commences, the challenges and opportunities facing the food and beverage industry are extraordinary.
The industry is under heavy pressure to continually adapt to evolving consumer tastes and demands. To meet the demands of a growing global population we need to almost double food production by 2050. A population explosion means, food and beverage manufacturers must rethink physical and digital production. To win the contemporary consumer, manufacturers also need to strike the right balance to address the demand for personalisation that prioritises environmental and health concerns.
Digitalisation of these food and beverage manufacturing companies is going to be key in tackling this new set of challenges while capitalising on new found opportunities. Digitalisation encompasses a transformation in the way industrial environments work. This shift toward digitalisation is a natural continuation for food and beverage manufacturers. The capabilities of Big Data- which has exploded over the past few years- mean that when sources as varied as consumer buying patterns and smart sensor readings provide manufacturers with gigantic datasets, this data can be collated, analysed at tremendous speed and used to create actionable insights. Food and beverage also has an active role to play in digital culture beyond just data and analytics. Social media has changed how consumers perceive and consume food and beverage.
While challenges do exist, evolving trends also bring with them a plethora of new opportunities waiting to be tapped into. As we move into an era of enormous growth, there’s never been a better time to embrace the innovations on offer. With challenges and opportunities less easy to predict than ever before, cutting-edge tech like Big Data, Artificial Intelligence and automation promise essential elements of the continuity and flexibility needed to navigate the future, while F&B balances industry challenges with the huge potential created by changing trends. Novelty; sustainability; transparency; and convenience could present future opportunities for food and beverage manufacturers.
Novelty
Food, and especially beverages, present relatively low risk opportunities for consumer experimentation, and with an increasingly globalised food culture, there are endless sources of inspiration. With the proliferation of social media into all aspects of our life, the consumer’s voice has been amplified like never before. Consumers are increasingly showing a desire for products that specifically address their personal needs, no matter how niche. Personalisation is a trend that is taking off in a huge way and is set to stay for the foreseeable future at least. To keep abreast with this wave of personalisation manufacturers are being forced employ technologies like automation to innovate and think of novel ways to balance customised goods and services without comprising on quality or safety.
Sustainability
Sustainability has been a hot bed of discussion over the past few years. More than ever before, it has now become vital that food and beverage producers develop a clean and sustainable supply chain consistent with their own environmental ambitions and business positioning. Conscious consumption, where consumers pay close attention to the ethics of their purchases, is also growing in importance. Plastic for example has started receiving a huge backlash from consumers across the world. The huge carbon foot print of transport also continues to be a key consideration as it involves every stage of the supply chain.
Transparency
At the simplest level, food and beverage manufacturers need to make certain their process satisfies consumer, regulatory and supplier needs. This could include assessment of energy consumption, examining packaging processes or reviewing distribution channels, among many other things. Technologies such as Big Data, AI and block chain is set to play a vital role in restoring consumer confidence in food and beverage companies. Data Analytics and AI can enable increased levels of quality control. Manufacturers can also use powerful process monitoring to create more accountability and transparency across the board. With blockchain, the products can now be traced at any step in the supply chain or back to their origin, within seconds. This will result in reduced wastage, fewer sick people due to the prevention of outbreak of foodborne illness and more confidence and traceability in the supply chain.
Convenience
Naturally, however appealing the story that a brand tells about itself, and however transparent it appears to consumers, this counts for nothing if it cannot deliver convenience. This means supplying the right range of product, in the right sizes and formats, in the right types of palletised loads, for the right sales channels – at the right time. E commerce has completely changed the traditional buying patterns of consumers and food and beverage companies are grappling to come to terms with this new buying behavior. A gradual shift cab be seen from large Hypermarkets to more localised small format stores. Adopting a robust logistics automation and robotics solution ensures manufacturers are equipped to handle customers’ ever-increasing delivery expectations has become critical to all players involved.
As the inter-relationships between these trends make clear, today’s consumer expectations are at an unprecedented high. Demand for ethical and humane production is matched by the demand for low prices, sustainable processes, living wages, healthy foods, good corporate citizenship and more. As we turn our thoughts to the future, one of the biggest opportunities for food and beverage businesses will be making healthy, sustainable food a practical and affordable reality. While the challenges seem vast, the chance to harness a combination of deep domain knowledge and the latest technologies is truly exciting.
(The author is Industry Lead, F&B, ABB India, Middle East and Africa)
|
|
|
|
|
|
|
|
|
|