Why Food Brands are Ditching Traditional Ways of Operation

The food processing industry is in transition, as producers shift towards more customer-centric approaches. Today, brands have epitomised the idea of offering safe and high-quality products. Consumers across the globe have become increasingly conscious about health and subsequently prefer healthier food options. Which is why brands are remodelling their marketing strategies to sustain the growing market pressure.

Moreover, it has been observed that building customer relationships have become crucial for manufacturers. From production to delivery, brands are adopting contemporary techniques to meet customer expectations as well as raise the quality of their product.  Implementation of new technology-driven business models and a more direct customer approach are leading to the creation of intricate supply chains structures. While such new altercations enable customers to make more informed decisions, they also tend to stretch the procedures of food manufacturing, packaging and delivery. Thus, it is vital to remain committed and continue developing more efficient systems that can identify consumer trends and help streamline industry’s overall workflow. Some of the latest digital management systems are capable of adequately assisting in product manufacturing, packaging and retail distribution. Besides, integration of advanced digital technology in managing services and processes, alongside basic management task is proving to be vital for food and beverage manufacturers.

Demand for high-quality Ingredients and raw material has grown significantly, as food items processed with low-grade ingredients tend to perish or spoil relatively faster. Owing to low nutritional offerings, low-grade ingredients often fail to provide sufficient food value, flavour and taste. Whereas, the final product is usually exemplary when higher quality raw ingredients are used.  Manufacturers now are trying to study consumer behavioural patterns using advanced real-time analytic tools and design more efficient audit systems that allow enhancing their product quality and supply chain. Incidentally, producers and suppliers are collaborating and sharing information to better understand a product’s penetration in the market. The latest innovative tools developed for the industry allow a thorough surveillance at production and packaging stages. This further indicates that brands are able to track and trace products from start to end until it gets purchased. Single data management systems are capable of managing the entire production facility, maintaining a track record of all manufactured items.

Undoubtedly, the modern hardware equipment and software that are specifically designed for the F&B sector come with extensive capabilities that allow even consumers to influence production procedures. Smart manufacturing technologies facilitate data collection and analysis to ensure that quality standards are not being dropped at any point of the production stage. The advent of unique product verification technology such a 2-D barcode and QR code on packages are allowing manufacturers to share product information directly with consumers. Using such technologies consumers can contact manufacturers by a click of a button and share their feedbacks. Correspondingly, manufacturers receive notifications instantly when these codes are scanned by consumers, therefore, they serve a two-way purpose.  By using real-time data, food companies avert issues from repeating in the future. Hence, creation of news business models is expected to intrigue more investor towards the industry in the coming years. It is most likely that technology will continue to play an important role in food and beverage processing as most companies strive to gain higher consumer trust and loyalty.

About the Author

Malar kodi

Malarkodi M comes with a vast experience in food & beverage market research, with a special focus on emerging trends in the ingredients sector. A well-known figure in the global F&B sector, Malarkodi M has helped both large-scale and small-scale food & beverage companies develop business strategies through her research and consulting expertise. Malarkodi has been at the forefront of discussions on the evolving F&B ingredients landscape and has voiced her opinions at international forums. Her international presentations at the ‘Agrochemical Business Strategies and Opportunities’ at Berlin (2014) and Vitafoods - Asia-Pacific Heart Health Functional Food Market, Hong Kong (2016) was widely appreciated, serving as a strong foundation for further discussion on emerging trends. Malarkodi’s insights are regularly covered by reputed food & beverage journals, including Food Navigator, Nutraingredients-asia and DairyReporter.

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