Study: Increased quality, greater digitization key factors in growth of food, beverage industry
Although quality is seen as the biggest driver for success, two-thirds of decision makers highlighted prices as the most significant challenge.
Increased quality and a greater focus on digitization in factories are two key trends identified in a recent global survey of 120 decision-makers in the international food and beverage industry.
The research, carried out by CSB-System International, Willowbrook, Ill., revealed that respondents were optimistic about future prospects, expecting the economic situation for their businesses to pick up in the years to come. In fact, half of the respondents specified quality, freshness and innovations as key drivers in defining product leadership.
Although quality is seen as the biggest driver for success, two-thirds of decision makers highlighted prices as the most significant challenge, with many sectors affected by high raw material prices, which are difficult to pass onto the trade or end-consumer.
Legal requirements in terms of food safety, labeling and traceability were also an area of concern, as well as the requirement among retailers for permanent product availability and prompt response times.
In these circumstances, respondents identified three business areas in particular where there was greatest potential for improvement – sales and marketing, production and intralogistics and information technology. In particular, enhanced IT systems were seen as critical in helping to reduce costs, effectively manage complex operations and improve overall responsiveness.
Looking to the future, the decision makers forecast an increasing focus on value and sustainability in the food sector. As well as mass market products, high-price segments would also gain in importance, with the combination of cutting-edge technologies and traditional crafts, allowing the introduction of a new generation of quality foods elaborately prepared and manufactured.
“We still expect the downward pressure on prices to persist, therefore cost reductions are necessary,” says Hermann Schalk, head of sales at CSB-System. “This must not adversely affect product quality, which is not necessarily the case. Our experience is that there is plenty of optimization potential in the processes, mainly through digitization.”