Challenges Faced by Food & Beverage Industry
With the steady rise in the global population, the demand for food and beverages is growing proportionally. The staggering scale, magnitude, and complexity of the food and beverage industry make it hard to have a generalized viewpoint on its incumbent challenges. From revised safety regulations and food recalls, to the fast-changing, often elusive consumer palate, start-ups in this sector need a safety net to make their mark today. Especially after the Covid-19 outbreak that has multiplied the challenges, relying on a food and beverage advanced analytics company for concrete, data-driven insights is a wise decision.
Here are the top 4 challenges faced by food and beverage businesses worldwide today:-
Stricter Health Regulations in the wake of the Covid-19 pandemic
Companies today need to devote much greater time and resources towards food safety compliance than ever before. Amidst rising health concerns, the biggest publicity debacle for your business can be a partial or complete food recall. The latest food and beverage analytics from data scientists have a crucial insight in this regard. Companies that are relying on advanced AI-based mechanisms to ensure compliance are doing far better than those that are using the traditional manual-check approach.
Discontinuation of Single-Use Plastics
In most countries, governments have enforced a ban on single-use plastics which have had a devastating impact on the environment. While this ban was much-needed, it has adversely affected many supply chains that were heavily reliant on plastics. The impending challenge now is to find suitable, cost-effective alternatives that are most importantly eco-friendly and recyclable.
Rising Operational Costs across the Supply Chain
In the throes of the pandemic, they might not perceive this as an immediate challenge. But as per the Food and beverage analytics conducted by top data analysts, mismanagement of labour costs is amongst the biggest contributors to companies going bust in the food business. Owing to inflation, both raw material and labour costs are increasing consistently. The losses caused by the Covid-19 shutdowns and supply chain disruptions have wreaked havoc on the balance sheet of most food and beverage businesses. One effective way of bringing down labour costs is by investing in suitable automotive processes with a high ROI.
Complex and Fluctuating Consumer Demands
Not only are consumer demands getting increasingly complex, but they are also prone to change quite often. Keeping pace is indeed a big challenge and companies are spending tons of money on mapping consumer behaviour, preferences, and purchase patterns. On one hand, there is a massive rise in demand for health foods and immunity boosters. On the other hand, there is also a staggering demand witnessed for indulgence and comfort foods. Then of course, there is a perceptible shift towards sustainable food and beverage products, a strong preference for plant-based sources, and healthy, alternative sources of protein. With 3D food printing and 3D food mapping, there is a consumer revolution of sorts, flooding them with options and choices that they have never had before.
Heralding a Data-driven Approach in Food & Beverage Industry
AI-based tools, digitization, and a data-centric
approach are being hailed as saviours for food and beverage businesses to flourish,
thrive, and grow amidst the pressing challenges as enlisted above.
To reap the complete benefits of big data, AI, and digitization,
you should ideally hire and train an in-house team to implement a strong data-driven approach across your business operations. But not all business owners have the time and resources for this. The best solution thus lies in outsourcing your business forecasting requirements to an experienced Food and Beverage Advanced Analytics Company. This can help you gain a competitive advantage and resolve complex challenges successfully, well within your available resources.