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6 Trends That Will Define Food Production in 2023



Introduction

The food industry faced many challenges in 2022, such as geopolitical conflict, natural disasters, and rising costs, which affected profit margins. To gain an understanding of how these macro uncertainties have impacted food and beverage companies, we have surveyed over 650 companies with the help of IDC. The insights gained were compiled into a whitepaper titled "Global Food and Beverage Industry Trends and Strategic Insights 2022." This blog highlights the six most significant findings from market research and provides a comprehensive analysis of the industry's outlook.


Trend 1: Finding good people will be challenging


What is going on?


The food business in 2022 has had significant difficulties due to the labor shortage. What's worse is that nothing will change anytime soon. For 35% of organizations, a lack of people will be the main transformational hurdle in 2023. That is a 15% rise in a year.


What does this imply for your company?


Talent shortages offer your company a chance to reconsider its infrastructure. Streamlining procedures and automating work can result in fewer employees. Additionally, it will assist you in attracting a younger, tech-savvy workforce.


Trend 2: The age of digital transformation has arrived.


What is taking place?


The urgent need for digital transformation has replaced it as a distant objective. Ninety-nine percent of food producers, suppliers, and distributors are modernizing their businesses. Additionally, 45% of projects for digital optimization have already improved KPIs.


What does this imply for your company?


A modern digital transformation strategy is required. Review your present software and start planning your next project right away. If you're unsure of what to do next, focus on the areas of your business that might greatly benefit from automation.


Trend 3: Rising costs will be offset by efficiency.


What is going on?


Costs for materials and energy are growing. A third of food companies plan to prioritize operational improvements in 2023 to combat external pressures.


What does this imply for your company?


To achieve success in your digital transformation efforts, focus on ways to increase efficiency and profitability through technology. Identifying critical business goals, and areas of improvement, and aligning them with your overall objectives and technology plan is crucial. Additionally, choosing a technology partner that understands your business priorities will be pivotal in driving change. This was discussed during the 2022 Global Food and Beverage Symposium by Yorck Haase, IT Director for R.L. Schreiber. He mentioned that though they hear lots of industry buzzwords like “digital transformation," they are more concerned with identifying the right strategy before implementing any technological changes.


Trend 4: Supply Networks Must Be Solidified.


What is taking place?


Supply chains continue to be a weakness for many businesses. Supply chain visibility and adaptability are important business weaknesses, according to 3 out of 10 food companies.


What does this entail for your company?


Traceability, together with efficient demand planning and inventory management, are essential for boosting supply chain resilience. Integrate your business software to monitor material needs and streamline the entire production process.


Trend 5: Many More Businesses Will Outsource.


What is going on?


To expand their businesses, food producers, distributors, and manufacturers outsource work. At least a portion of production is now outsourced by 75% of businesses.


For your firm, what does this mean?


When you completely trust your partner, outsourcing performs best. You can collaborate closely with contractors by using shared processes and data insights. Your objective is to boost production volume without sacrificing quality.


Trend 6: Customers want sustainable businesses.


What is going on?


Food businesses are responding to consumer demands to become more sustainable. In 2023, 40% of manufacturers, distributors, and producers think sustainability will be their main focus.


What does this entail for your company?


You require quantifiable sustainability objectives that matter to your clients. The setting, monitoring, and reporting of KPIs will demonstrate your company's progress toward going green.


 


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