Top Trends Disrupting the US Food and Beverage Industry in 2020
US Food and Beverage Industry Overview With the rising population and changing consumers' lifestyles, companies in the US food and beverage industry must constantly thrive to become more energy-efficient, globally sustainable, cost-efficient, and health-conscious. There are numerous opportunities for companies to grow but staying on top of emerging technologies like artificial intelligence and blockchain is [...]
US Food and Beverage Industry Overview
With the rising population and changing consumers’ lifestyles, companies in the US food and beverage industry must constantly thrive to become more energy-efficient, globally sustainable, cost-efficient, and health-conscious. There are numerous opportunities for companies to grow but staying on top of emerging technologies like artificial intelligence and blockchain is the key necessity at this point. They need to address changing consumer preferences and rising costs while innovating to gain a competitive edge in the marketplace. With so much happening inside the industry, firms must also analyze the latest trends influencing the US food and beverage industry.
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Future Trends in the US Food and Beverage Industry
US Food and Beverage Industry Trend #1 Natural Alternatives and Clean Labels
Transparency is the biggest trend driving change in the food and beverage industry. Consumers are keen to know ingredients going on into products. This is the reason why companies are launching products with shorter ingredients lists. Consumers are looking for brands that can reflect their personal values. Clean labels with high ethical values are more important for “aware” customers looking for real ingredients from nature. They are seeing their purchasing decisions as a form of activism and supporting brands that align with their beliefs and hope for the future. Companies, therefore, need to make systemic changes for the betterment of the people and the planet to gain a competitive edge.
US Food and Beverage Industry Trend #2: Healthier Options
Health has become a key priority for consumers. Over the last few years, this has resulted in cleaner labels and the growth of new entrants across different categories. Consumers are becoming more educated and retailers are taking positions with innovative products to drive higher profit margins. Companies that have been in the market for over 50 years are recreating their products with no sugar alternatives, saturated fats, and artificial coloring. In the near future, gauging health and wellness will help retailers drive change.
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US Food and Beverage Industry Trend #3 Food Safety
As consumers increasingly demand to know the food they eat, food safety issues are costing companies in the food and beverage industry billions every year. It has become important for the industry to pinpoint issues and solve them by utilizing the latest technologies such as blockchain. According to our analysis, as companies will become aware of the blockchain’s benefits across the entire food chain, the manufacturers and distributors using this technology will increase.
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US Food and Beverage Industry Trend #4 Mergers and Acquisitions
Both private equity (PE) firms and large brands will consider on-trend companies in the food and beverage to be a lucrative option. They will look to rising brands to help add new product lines and reach new consumers. Firms will undertake acquisitions beyond their traditional business and invest in segments that have better prospects. However, companies need to keep an eye on tariffs affecting their business similar to private equity firms while evaluating prospects.
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