LONDON--(BUSINESS WIRE)--SpendEdge, a leading procurement intelligence firm, has recently announced the completion of its latest Q&A article on the future of the food and beverage industry as the global economy battles its way through the COVID 19 pandemic. In this article, Vivek Sikaria, AVP - Custom Research, shared his foresight on the trends and practices that will characterize the future of the food and beverage industry post recovery from the COVID 19 pandemic.
Key Excerpts from the Q&A Session on the Future of the Food and Beverage industry
According to you, what are the sectors in the food and beverage industry that will benefit the most out of consumer’s purchasing behavior in light of the current COVID 19 pandemic?
Confirming his agreement on the impact of consumer’s purchasing behavior, Vivek stated that panic buying amidst this pandemic will result in major demand shifts across sectors in this industry. He implied an increase in the demand for snacks and non-alcoholic beverages among students who are trapped in their lodgings because of the lockdown. Vivek added that the inconsistency in the supply of raw ingredients will compel millennials to purchase ready-to-eat frozen products.
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What do you foresee in the future of the food and beverage industry post recovery from the COVID 19 pandemic?
According to Vivek, the nature and the ramifications of challenges that are being faced due to the COVID 19 pandemic have driven a crucial lesson which is that the prospect of high demand does not necessarily translate into success. He stressed the necessity to have a responsive infrastructure in place to cater to the increase in demand. On this note, Vivek stated the possibility of a major proliferation of automation across certain sectors in the future of the food and beverage industry. He asserted his belief that this will fulfill consumers’ preference for contact-less service execution and delivery. This will also compensate for the labor shortage which is one of the biggest challenges faced in the current food and beverage industry during the COVID 19 pandemic-induced lockdown.
From a sourcing and procurement perspective, what are the strategies that you think will secure the future of the food and beverage industry?
In view of the fractured supply chains in the food and beverage industry, Vivek stressed on the importance of vendors to practice absolute adherence to GS1 traceability standards. This is particularly relevant for procurers for raw ingredients such as poultry meat. The GS1 standard requires suppliers to provide traceability in elements like cattle information such as age and source and livestock mob movement declaration in case of livestock.
To fortify the future of the food and beverage industry, Vivek stated the necessity of the assessment of the storage capacities of suppliers. Procurers must analyze the available storage capacity across a supplier’s facilities within a specific region and in proximity to the demand markets. The more the area allocated to storage reduces supply shortage risks in the event of supply fluctuations due to natural calamities (crop infections and unfavorable weather conditions) and economic downturns.
He further stated that the implementation of forward contracts by suppliers can protect buyers against factors such as exchange rate fluctuations and variation in the physical properties of products.
Supply chain disruptions and commodity price volatilities are the common challenges that are jeopardizing business continuity across industries during the COVID 19 pandemic. Request a free proposal from our experts for comprehensive industry analysis and gain customized market intelligence solutions.
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