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Kevin Lobo, FB Tech Review | Friday, August 21, 2020
The food and agricultural industry is the most significant in the world, with a consistent, loyal customer base of billions.
FREMONT, CA: The United States alone made massive investments in food and beverage on the food front. Meanwhile, 9.7 percent of Americans' income was spent on food, 5 percent at home, and 4.7 percent away from home. Despite the strong customer base, the food industry faces unprecedented challenges in the production, demand, and the regulations stemming from consumer trends. Consumer demand and focus have changed in recent years. The increasing focus by the consumers on sustainability, health, and freshness has put substantial pressure on the food industry to innovate.
The consumers of the new age are getting pickier about what they eat. They are balancing hectic work and personal lives, and demand convenience when it comes to their meals. But this convenience cannot come at the expense of the quality. In the present scenario, people want to know what is in their food, where it came from, and how its production and sourcing impacts the environment.
In the past few years, consumer packaged goods (CPG) incumbents rushed to deliver on these heightened demands, ensuring convenient, superior-quality food. But the falling margins on the commodity ingredients paired with the industry consolidation, have discouraged these efforts, and many have refocused their attention, paving the way for a new wave of hungry innovators and startups.
The consumers these days are looking for convenience and consistency and seek nutritious food, which can be accessed with ease, limits waste creation, and aligns with their brands. The truth is that it has never been more challenging to be a food company. Consumer demands have enlarged to inculcate ethical mantras but have not provided a way to the requirements of convenience. Moreover, the trends show that consumers are ready and are willing to pay a premium for food tech innovations, which can meet their ever-rising requirements of convenience, health, and low environmental impact. Therefore the opportunity for food innovators to capitalize on these market demands is growing.