5 Outlooks And Trends For Food Manufacturing

By Isaac Fletcher, contributing writer, Food Online

Driven by innovations, regulations, demand for new products, and emerging markets, 2015 is expected to be an eventful year for food and beverage manufacturers

Each new year brings a new set of opportunities, challenges, and trends for food makers. Highlighted below are five major trends that are expected to take root in the industry throughout the coming months.

1. Innovative Solutions Drive Down Costs

Manufacturers are under constant pressure to cut costs and pass the savings on to the consumers in order to remain competitive in the market. In an effort to derive more value from operations, manufacturers are on the lookout for:

• Innovative Ways To Maintain Profitability
• New Products
• Methods To Evolve Product Categories

A major goal for most food-industry players is to find the most cost-effective ways to manufacture products, standardize equipment, and minimize labor costs throughout production. Movement toward innovation and standardization within certain product categories can go a long way toward driving down costs. By reevaluating manufacturing strategies to develop an optimized cost model, food processors can create more efficient operations.

Furthermore, processors are exploring methods to increase their production flexibility to allow for the production of high-margin items while not detracting from their bread-and-butter products. In the past, companies may have simply evaluated the profitability of a plant as a whole, but the current food-industry landscape necessitates that processors dig deeper to evaluate profitability of product categories and manufacturing lines on a more individual basis.

2. Energy Efficiency

Consumers have become increasingly concerned about the environmental impact that results from the production of the foods they consume. This trend is unlikely to stop any time soon, and certainly will not in 2015. Recognizing the value in creating more-sustainable and energy-efficient processes, many companies are looking into new and better ways to power their operations. This not only establishes higher levels of consumer trust and loyalty, but also cuts operating costs and increases margins.

3. Considerations For Healthier Products

Similar to concerns over sustainability and energy efficiency, consumers are also becoming more conscientious of what they are eating. Accordingly, there has been an increase in the demand for organic and natural foods. For food manufacturers, this presents new challenges when it comes to different types of equipment and the way materials are processed. Handling for these product types is different from traditional products, which has a significant impact on the way production lines are operated.

4. Refrigeration Strategy

Refrigeration compliance has been generating significant interest recently, and food and beverage manufacturers are seeking for ways to take active roles in developing a refrigeration strategy for 2015. In order to adhere to new regulations stipulating that R-22 refrigerants must be phased out due to their damaging effects on the atmosphere, many manufacturers will be exploring natural options, such as CO2.

5. China As A Growth Vehicle

Many food and beverage companies are recognizing China’s potential as a catalyst for growth, and are taking the opportunity to expand operations in the region. This is due not only to the emergence of a strong middle class, but also fears Chinese consumers hold regarding contamination and ingredients from Chinese companies. Thanks to well-respected reputations regarding food safety and product quality, U.S. companies have earned the trust of Chinese consumers willing to pay higher prices for superior products. This environment has prompted many multi-national companies to make expansions into the burgeoning market.