The article is contributed by Mr. Shubham Khanna, Founder & CEO, Liquii Beverages Pvt. Ltd.
With a growing population, there is also a rise in concern over healthy foods and drinks. People are now more aware of the food and drinks they are consuming. This has led to Food and Beverages companies working on their toes to deliver the best product they can. Consumers these days are well aware of the products they are consuming, they are in regular touch with the health factors of the food delivered to their doorstep. Food and Beverage companies not only have to look out for their competitors but face other challenges too. Some of the challenges that these companies have to go through are listed below.
To retain their position in the market or to sustain the cut-throat competition, it is likely that companies have to go through innovative ideas. The market is full of Food and Beverage Companies offering products that are tempting enough for consumers to go for. In this rush to get creative, food and beverage companies have to come up with something new. With so many different products available for purchase across a multitude of channels, product innovation and differentiation is getting increasingly important. For one, plant-based and fresh Products disruption will continue to increase. Demand for Fresh substitutes has rocketed recently, and consumers are consuming more plant-based and Fresh alternatives. The key to longevity is the need to accelerate new product development and adapt & improve products in correlation to thorough R&D.
Striking the right concept
For any company to achieve success and growth, it has to check all the boxes of striking the right concept. Most of the Food & Beverage companies fail because of the lack of awareness about the concept. Nearly 60% of the startups fail around the first year of their inception. But if you have done the right research about the market, and focus on disruptive ways to integrate the right balance between functionality and long-term brand vision, you will succeed. Products are bought and not sold, and consumers have now become aware of the social and lifestyle impact of the brands. It’s important to build a strong community of loyal customers who not only like the product but also align their values to the brand’s vision.
With the internet playing a dominant role in everyone's life, consumers are well aware of what they are being offered on their plates. Consumers are becoming savvier, more informed, and are demanding change. To that end, customer-centricity has to be at the heart of every F&B company. The companies should not only keep the safety of consumers in mind but also their mindset regarding the environment. To better meet the demands of the target market, it is imperative to tap into customer insights like behavioral segmentation and product preferences and centering the innovation efforts around them. That doesn't just mean the product itself, but also the end-to-end customer experience from shopping to eating, to delivery to the doorstep
Waste Reduction and Sustainability
Reducing food waste is imperative not just to cut down on unnecessary costs, but also to reduce planetary impact and optimize organization sustainability. In addition to that, the consumer is also becoming more aware and concerned about the planet, so they are opting for sustainable options. Sustainability issues must be brought to the forefront. In particular, addressing the food system to eliminate food waste and build a better food system for everyone. One of the key pillars of sustainability is to fight food waste by finding a home to “bad-looking but not bad-quality ” fruits that otherwise get discarded. Through years of research, it’s been proved that it’s not the food that’s bad but it’s the food system.
The current impact and aftermath of Covid-19
Pandemic has turned the world upside down. No one has ever expected the scale of impact the pandemic would cause. The Food and Beverage sector has faced the worst burn of the coronavirus. Not only has consumer demand decreased but it has also hit the manufacturing and supply chain. Ingredient sourcing with farming and agricultural activities have also seen a great loss due to pandemic. Consumers still refrain from ordering food from outside. While the onset of vaccination helps reduce some of these challenges, the aftermath of the pandemic is likely to remain.
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