Top 5 Trends in the Global Food and Beverages Industry
Did you know that the food and beverage (F&B) industry is one of the most essential components of several economies across the world? Do you know where that whole wheat bread or packet of chips is produced and under what conditions? Are you aware of the procurement process and supply chain networks of the food and beverage companies across the world? Food and drinks are an important part of several cultures and they own a personal/social space in the consumer’s hearts and minds. The global food and beverage industry is highly consumer driven with a multi-dimensional and global network that has transformedthe consumers’ eating habits and preferences.
The food and beverage industry has witnessed phenomenal growth due to factors like growing population, technological advancements, streamlined manufacturing processes and improved cold chain facilities. The profit margins in the industry has been relatively small, resulting from the growing price wars in this highly competitive market. Globally, the industry is dominated by category captains who dictate the retail space and indulge in mergers and acquisitions (M&A) with smaller food and drink companies and manufacturing units.
Food and beverage manufacturing companies are increasingly seeking supply market intelligence to customize their product lines and categories to suit the current trends and consumer preferences. SpendEdge helped a leading food and beverage company to streamline its sourcing and procurement processes, thereby decrease its overall category spend and drive profitability.
Top Food and Beverage Industry Trends
#1 Nutritional Foods
With high level of awareness and access to information sources, consumers are increasingly seeking food and drink products that are healthy, fresh and score high on nutritional value. Additionally, customers gravitate towards products that are sugar-free, gluten-free, lactose-free and have a low calorific value. Food and drink manufacturers are focusing on procuring natural ingredients and substituting them for artificial flavors and substances. This has brought a major change in the procurement strategies of the F&B companies across the globe.
#2 Functional Beverages
Consumers are on the lookout for beverages that hold the nutritional value of food as well as the convenience of a beverage. Recent terms such as drinkable food products and ‘snackification’ of beverages are becoming popular. These functional beverages act as nutritional drinks as well as meal replacements that are guilt free. These power beverages address various consumer needs like refreshment, satisfaction, energy booster and a range of functional benefits. This trend has been fueled by the constant decline in the demands for sugar based and carbonated drinks that have been identified to be harmful for consumption.