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Food Food Revolution!
Oct 21, 2022
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With the pandemic and subsequent lockdown, people are paying more attention to what they eat. The different ingredients listed in the packaging is being looked at and diets are seeing considerable change. As companies are catching up to this trend shift, company expenses on managing these new changes are also catching up. Food, of course, no longer looks as it did 10, 20 or 30 years ago. The market has shifted, with more preservatives than ever to meet customer demand before the 2020 lockdown, but now things have changed.
What has caused this change? Let’s look back a year and 10 months from now. Those in the US were monitoring the spread of COVID 19 across the globe but were confident that it would not hit the US as hard, after all we had weathered other deadly viruses such as SARS and Bird Flu. However, when the virus started spreading across the US at a rapid pace, lockdowns became common, something we did not expect to last for months.
Increased time indoors changed people’s lives, now people needed breaks from TVs, phones and laptops when before there was “not enough time”, so every free moment was spent on TVs, phones and laptops. Before the lockdown, 8am-5pm workdays seemed not enough that overtime was prevalent. Now these 8am-5pm hours with no need to step away from our homes to achieve them, make us just want to be away from our laptops altogether.
Truly people started to realize the value of family and friendship when they were forced apart from them by lockdowns and 6ft distances. With this forced shift in each person’s perspective, family time, spouse time, time with the children, time with friends, became important and with it a new dynamic in food demands.
More often this instant generation started making food at home, reduced purchases of packaged readymade food and started paying more attention to what they eat. It is an unexpected shift for the food industry that has been going more and more in the direction of preservatives and artificial flavors. In some cases, lack of products customers need result in home grown products and in a social media society, this information is passed around instantaneously, resulting in loss of customers due to new competition or a new rising business. However, there are more dire cases where the lack of a food product in demand can cause serious harm for the populace. In this case the baby formula shortage that started this year in June is still not fully recovered and many infants and ended up in the hospital because of homemade formulas. The lack of alternative baby formula production options shows a huge weakness in the Food Manufacturing industry which needs to be filled. So, what is the best trajectory for the food manufacturing industry to consider?
Maybe have the customers be the trend setters and follow their lead. It looks to be that customers are more focused on creating healthier foods at home and it doesn’t look like the virus is going anywhere soon. Food allergies have been increasing and customers have banded together to help each other accommodate for the allergies by finding the right foods, food brands, and ingredients that would work for them as a replacement to the original food products that the customers would usually buy. Another idea would be for food manufacturers to look back at their product history and see how the products changed over time, what product ingredient or flavors were added recently, how did these products taste 5 years ago, 10 years ago, etc. Run a few sample tests, such as duo-trio test, with volunteering customers to see the change in preferences caused by the shift in eating habits for the last two years.
Just some food for thought!
Anyway, for Food Manufacturers interested out there, I would love to discuss with you more on potential ideas for growing customer demand shift, or any other concerns your company may like consulting advice for. Please don’t hesitate to reach out so that we can go to next steps for a personalized Elohim Report for your company! Maybe we can discuss potential ideas for reducing COGS, managing production decrease, setting up solutions for the long-term economic effect, figure out plastic reduction plans while managing the pandemic impact, etc.
Thanks
Annu Daniel
Sources:
McClimon, Timothy J. “CEO’s Most Important Business Challenges in 2022.”Forbes, 27 Jan. 2022, https://www.forbes.com/sites/timothyjmcclimon/2022/01/27/ceos-most-important-business-challenges-in-2022/?sh=39224c6cce13. Accessed 5 Sept. 2022.
Iyer, Saipriya. “Top 8 challenges of food and beverage industry to watch out for.” Global Market Insights. 12 Jan. 2022, https://www.gminsights.com/blogs/challenges-in-food-and-beverage-industry. Accessed 5 Sept. 2022.
“Overcoming Food and Beverage Industry Challenges in 2021” Food Business ERP. 7 Jan 2022, https://www.foodbusinesserp.com/overcoming-food-and-beverage-industry-challenges-2021/. Accessed 5 Sept. 2022.
Jones, Ralph. “Why food allergies are on the rise” BBC Future. 25 Oct. 2022, https://www.bbc.com/future/article/20201023-food-allergies-why-nut-dairy-and-food-allergy-are-rising. Accessed 5 Sept. 2022.
Messina, Mark, and Carina Venter “Recent Surveys on Food Allergy Prevalence” Nutrition Today, Vol. 55, issue 1, 2020, pp 22-29, https://journals.lww.com/nutritiontodayonline/fulltext/2020/01000/ recent_surveys_on _food_ allergy_prevalence.6.aspx. Accessed 5 Sept. 2022.
“4 Key consumer trends in the food industry - Panni Management” Panni. 10 Sept. 2021, https://pannimanagement.com/blog/customer-demands-in-the-food-industry/. Accessed 5 Sept. 2022.
Olayanju, Julia B. “Top Trends Driving Change In The Food Industry” Forbes. 16 Feb 2019, https://www.forbes.com/sites/juliabolayanju/2019/02/16/top-trends-driving-change-in-the-food-industry/?sh=4f8b2e336063. Accessed 5 Sept. 2022.
Canzi, Elena, et al. “Perceived Changes in Family Life During COVID-19: The Role of Family Size” Family Relations Interdisciplinary Journal of Applied Family Science, Vol. 77, issue 5, Sept. 2021, pp. 1301-1311, https://onlinelibrary.wiley.com/doi/full/10.1111/fare.12579. Accessed 5 Sept. 2022.
Onque, Renee, “The baby formula shortage isn’t over and ending it may ‘take a while’ — here’s a timeline” CNBC Make It, Aug. 2 2022, https://www.cnbc.com/2022/08/02/what-you-need-to-know-about-the-us-baby-formula-shortage.html. Accessed 8 Sept. 2022.
“MLA Works Cited: Electronic Sources (Web Publications)”Purdue Online Writing Lab, https://owl.purdue.edu/owl/research_and_citation/mla_style/mla_formatting_and_style_guide/mla_works_cited_electronic_sources.html. Accessed 8 Sept. 2022.
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