Challenges in Food and Beverage Industry
Challenges in Food and Beverage Industry
[ CITATION GMInsights \l 16393 ] With the outbreak of the deadly pandemic, there has been a
substantial change in what used to be known as ‘normal.’ COVID-19 has destroyed both lives
and the economics of countries across the globe with the implementations of timely
lockdowns on borders and the economic activities of the country. Verticals of major
industries around the world have been badly affected due to the pandemic because businesses
around the world are finding it difficult to keep their businesses running. According to
financial experts, this pandemic is a situation worse than the global financial crisis of the year
2008. Among all the sectors, the food and beverage industry has taken one of the worst tolls.
In recent times, there has been a shift in the way people used to consume with respect to food
and beverage. Consumers are now becoming more and more health conscious by consuming
nutrition-friendly, sugar-free, and fat-free products. This of course is a positive attitude, but
this is a major concern for the food and beverage industry. Products are not only analysed
with respect to its nutrition content but also the quality of the product. Some of the main
challenges of the food and beverage industry are as follows:
1. PLASTIC BAN
Due to industrialisation, where F&B sector plays a major role, has had major impact of the
plastic ban on a global level. As the consumers are becoming aware of what is happening to
their environment, the F&B sector is forced to change the way how things used to be done.
Eco-friendly methods are used to ensure that there is no unnecessary wastage or pollution.
Nestle has taken the lead and given the deadline of 2025, where they will be able to use 100%
reusable or recyclable packaging. Soon other companies like McDonald’s and Café Coffee
Day have joined the movement of going plastic-free in their production and packaging
processes.
2. MEAT-FREE AND VEGANISM TREND
As we see that the consumers, by the masses, are changing their food patters by going
towards vegetarianism and veganism, the demand for meat and other animal products has
seen a significant decline. This presents itself as a challenge to the food and beverage
industry. With the rise in the social media activities, influencers are now behind the trend
where they are promoting products that are labelled “humane-certified” or “cage-free.”
3. PACKAGING
Almost 74% of consumers said that they are willing to pay extra for the products that come
with sustainable packaging. This has forced the companies to get creative at a swift pace.
Companies are also made to think out of the box in their approach and the aesthetics with
respect to the environmental impact. As a result, eco-friendly packaging materials have come
a long way. One such company is Fresh Bowl which uses glass containers to serve salad
which then can be returned at the kiosk post-consumption.
4. PLANT-BASED ALTERNATIVES
[ CITATION Apa21 \l 16393 ] Pandemic has caused major change in the eating habits. According
to a study conducted in the US, nearly 57% of the households have purchased plant-based
foods in 2020. Due to the availability of time during the lockdowns, lot of experiments have
taken place with food and flavour. Another study and the US mentioned that nearly 92% of
the first-time buyers of protein alternatives are likely to continue with the alternative post-
pandemic.
5. SUSTAINABILITY
In the US alone, nearly 108 billion pounds of food is wasted. Market data of food and
beverage research indicates that sustainability is a critical challenge for the industry.
Improvements have to be made in the fronts of supply-chain to reduce the overall food
wastage and ways have to be found out to ensure safer packaging that will reduce the impact
on the environment.
References
Aparna. (2021, August 25). Retrieved from https://spoonshot.com/blog/food-and-beverage-
industry-challenges-and-opportunities/