Like this article ? We would love if you could Share !Tweet about this on TwitterShare on Facebook2Share on LinkedIn8Share on Google+0Share on Reddit0Digg thisShare on StumbleUpon0Buffer this pageEmail this to someone
  • Consumer Demands:

The consumers change their behaviors – new preferences and fads dominate many buying decisions. The change in consumer demands has pressurized food manufactures to quickly develop product to meet the demands. Consumers are looking for what they deem to be healthier products, and packaged foods companies have seen sales dip as consumers hug the outer rim of grocery stores rather than buying more of their products from center store shelves. Perimeter means fresh, natural, and whole foods while center of store foods are thought to be more processed.

We have a classic example which throws light on change in the consumer behavior.

Product Period Result
Meats & Poultry product 2003 vs 2004  21.4%
Dry Packaged Dinner 2003 vs 2004   -6.9%
  • Food Safety and Regulations:

The food processors have reported that they are taking additional steps to ensure food safety. The graph below shows us a radical concern:

{survey of U.K. consumers conducted by the Food Standards Agency   }

If a negative image is generated, the media can quickly alter a brand to a liability.

Most countries are having diversified types of food and safety regulations. Non-compliance can lead to fines, shutdowns, loss of market share, or even the end of the company. For most, these risks are overwhelming, and compliance with regulations is mandatory.

  • Globalization:

The food industry has been in wrong impression of being safe from globalization. Fresh products are now available year-round in most markets, imported from countries once considered to be too far away to compete.

Globalization is a two-way street. Products can enter your market but your products can now enter other markets, a phenomenon once seen as impractical.

  • Slow product innovation cycles

Bringing to market new products that align with emerging consumer trends in a timely manner is difficult for many food and beverage companies as the process of creating new, relevant products and moving them through R&D, testing, and marketing to retail takes time — often more time than companies would like.

This time latency can be majorly reduced through open innovation solutions. Ideapoke offers a marketplace and a hub of partners and solutions for many challenges in the Food and Beverage industry.

Get Free Email Updates about latest Innovation trends & articles!

Signup for our newsletter for free and receive email once we publish new content

We don't like SPAM and we promise we don't do it either.You can unsubscribe at any time!

Like this article ? We would love if you could Share !Tweet about this on TwitterShare on Facebook2Share on LinkedIn8Share on Google+0Share on Reddit0Digg thisShare on StumbleUpon0Buffer this pageEmail this to someone