The year 2022 proved yet another challenging one for the food industry. Issues like unusual weather events, manpower shortages, soaring costs, supply chain woes, etc. successfully contributed to squeezing the profit margins of the food manufacturers. Thankfully, the year is nearing its end. But the manufacturers need to plan for the upcoming 12 months, how they would be!
As the quote says, “A life filled with uncertainties and hard lessons provides us with skills to better approach new challenges that come along.” Supporting this quote, up to now, the food industry has seen many new challenges, but by incorporating new advancements, it succeeded in dodging all the stumbling blocks that tried to disrupt the workflow and minimize profits.
But as every cloud has a silver lining, these times can be termed exciting too, as the future holds a lot of potential and ample opportunities in its hands. And there only will be the survival of fittest-that is of the ones who succeeds in overcoming the upcoming challenges. And how? To aid you in this, we have got the most crucial trends for the future year 2023, that will help you timely adapt to the new possibilities and deliver fruitful results, later on.
What’s In Store?
The bread of the year 2023 will have everything from beautiful butter spreads to flaky salt toppings and lemon zest. These trends will clearly define the context of what is going to be served in the manufacturing platter and how a food and beverage manufacturing ERP software will help you deal with it successfully savouring the taste of profits the whole year through.
1. Adoption of New Technology- The economic position for most of the world doesn’t seem to be encouraging. In fact, it has only worsened due to the Ukraine-Russia war. Amidst such situation, manufacturers are struggling with stiff budgets and limited material supplies due to increased restrictions. In addition, to more than half of F&B consumers, costs and value for money have seemed to become equally important.
Hence, the upcoming year will require brands to be resilient in their operations, exploring money-saving strategies, to deliver quality products without compromising on profit margins. And to realise this, manufacturers can leverage the benefits of rapidly evolving technological opportunities that will ensure the amount of flexibility and potency required to navigate the year ahead.
2. Reframing The Supply Chain Activities- Whether due to recessionary situation, geopolitical conflicts, or climate changing events, the supply chain bottlenecks could persist in the upcoming year too, says industry experts. During this time, commodity prices and key material availability may fluctuate.
For this, having an enough resilient supply chain that could resolve all the redundancies easily like holding extra inventory for crucial items, engaging with multiple suppliers, increased visibility for better operational stability, managing trade compliance agreements and documentations, tax calculations, executing reconciliation and settlements, etc. will be a key requirement for the manufacturers.
3. Focusing on Data Insights- It’s a popular saying that “an ounce of prevention is better than a pound of cure.” And in manufacturing, prevention is only possible if you are informed and well aware of the upcoming situations to tackle them without losing anything.
Hence, over time manufacturers will need to turn towards statistics and figures to stay informed and action-ready beforehand. Along with ensuring a streamlined execution of the manufacturing operations, hundreds of performance indicators keep manufacturers updated with every type of uncertainty that could occur.
4. Greater Emphasis on Healthy Food- Even if the pandemic may have ended, but its legacy will keep reminding people that their health is and should be the foremost thing for them. Hence, the year 2023 is likely to encounter this trend of changing food demands.
The continuous innovation and introduction of new products to the market in a variety of packaging proves that consumer demands are changing rapidly. Prominently, changes in lifestyle and diet preferences have given rise to this trend of specific food requirements and this might increase in the upcoming time.
Some specific healthy food trends that are expected to rise in 2023 are-
- Immunity-building foods
- Foods with reduced sodium and sugar—to reduce obesity & other health issues
- Innovative flavours and combinations
- More traditional protein-rich foods
- Gluten-free products, etc.
5. Driving The Sustainability Agenda- Sustainability is- manufacturing products through economically-sound processes that ensure minimized negative impacts on the environment.Consumers’ perception of opting for sustainable food products is not new but, because of increasing health concerns and dietary issues, this ideology popped up again. This is the reason why manufacturers need to refocus their attention on sustainability and related choices that consumers are making.
Along with the strengthened demand for plant-based foods and veganized recipes, the plastic-free packaging is getting more popular among the millennials. Hence, for packaging and labelling too, the trend of adopting recyclable materials, bio-based inks, and adhesives that could wash off, would probably become more common in the upcoming year.
6. Affordability- According to many reports, the inflation will continue in the next year too. Due to this, consumers will look for affordable alternatives to their food choices. This will motivate the food manufacturers to drive innovation and make their products satisfy the changing consumer demands and desires.
In an industry where profit margins are slim, accomplishing this goal of introducing affordable food products into the market, requires running production processes with maximized efficiency, minimized waste, reduced time of execution, improved productivity, etc. At such time, adopting automation will be a popular trend among manufacturers to increase competitiveness and act as a huge cost saver.
BatchMaster Is Here to Help-
Here at BatchMaster, we are committed to providing effective technological capabilities that help our clients to be ready for tomorrow, today. As challenges like soaring costs, driving sustainable production, changing food demands, etc. continue to increase, automation with the help of an industry-specific Food ERP software resolve all the manufacturing redundancies and helps ensure decreased production time and increased output for a stable future.
Our decades of presence, with numerous successful implementations, are evidence of our authenticity and expertise. If you need any assistance related to industry-specific ERP solutions, get in touch with our team of experts today.