The food and beverage industry is enormous, including subindustries like grocery, restaurants, bars, catering, and more. The industry continues to evolve and adapt despite frequently changing consumer preferences and new, complex challenges. So, what’s currently affecting those in food and beverage? In this blog, we’re going to dive into some of the latest trends in the food and beverage industry.
TRENDS IN THE FOOD AND BEVERAGE INDUSTRY
LABOR SHORTAGES IN FOODSERVICE
ARTIFICIAL INTELLIGENCE & AUTOMATION
CONTINUED COLD CHAIN GROWTH
One of the well-known trends in the food and beverage industry is the continued growth of cold chains. Recently, a Grand View Research study shows that the cold chain market was estimated at USD $330,680 billion in 2023. Furthermore, it’s estimated to grow at a Compound Annual Growth Rate (CAGR) of 14.8 percent from 2024 to 2030.
Recently, there’s been an increased demand for temperature-controlled pharmaceutical logistics (think vaccines and biologics), rising demand for better food quality, including more fresh and frozen foods, and a surging need to reduce food waste. All this is anticipated to drive the market’s growth.
In light of the pandemic, the risks of COVID-19 have made consumers more interested in healthier, less processed foods that will boost their immune systems. However, less processed foods mean more food products that will need temperature control.
Additionally, the frozen food sector looks to be growing. Besides filling home freezers, frozen foods are growing in restaurants. Restaurants are also providing new menu items for the frozen grocery aisle. In an American Frozen Food Institute report, 72 percent of frozen food consumers said they combine frozen and fresh ingredients in their meals.
Comparatively, shippers are also using more cold chain services to preserve the shelf life of their products, even when temperature-controlled transportation isn’t needed.
SUSTAINABILITY
Growing climate issues are making sustainability a common trend in almost all industries. Consumers are taking notice of the sustainable practices of companies. From ethical sourcing, carbon neutrality, to eco-friendly packaging, consumers want the brands they buy from to be sustainable. Additionally, food waste is a major contributor to greenhouse gas emissions globally, contributing to cold chain issues. This makes sustainability one of the top trends in the food and beverage industry.
Consumers Care About Sustainability
One way consumers can show their support for the environment is by choosing to purchase from sustainable brands. Consumers have shown they’re willing to pay more and be loyal to brands that invest in their sustainability efforts. In a survey by YouGov, more than half of consumers said they would be willing to pay up to 10 percent more on sustainable versions of regular packaged food and drinks. In another consumer survey, 78 percent of respondents agree that sustainability is import, with 63 percent stating they have adopted greener buying habits.
Food Waste Prevention
In fact, an S&P Global Ratings report says food waste contributes to 10 percent of emissions and that $1 trillion of food is wasted each year. Similarly, according to the U.S. Environmental Protection Agency (EPA), between 73 to 152 million metric tons of food get wasted each year in the U.S. The most wasted foods are fruits and vegetables, followed by dairy and eggs, with over half of all waste occurring in households and restaurants. In addition, the food processing sector generates 34 million metric tons of food waste per year. And over the past decade, the total U.S. food waste has increased by 12 percent to 14 percent.
To put it differently, the EPA said halving food waste in the U.S. would save 3.2 trillion gallons of water, 640 million pounds of fertilizer, 262 billion kilowatt-hours of energy, and 92 million metric ton equivalents of carbon dioxide. According to the Agency, reducing the waste of meats, cereals, and fresh fruits and vegetables would have the most significant impact.
Due to this growing issue, governments and businesses have been working hard to improve sustainability efforts. In July 2021, the Zero Food Waste Act was introduced to provide grants to businesses that significantly reduce their food waste. Additionally, in November 2021, the Food Donation Improvement Act was introduced to lower food waste by making it easier for companies to donate food instead of throwing it out.
Cold chain improvements have seen growing importance even outside the food and beverage industry. One example is UPS Healthcare developing a system and opening facilities to move medicines safely. Part of their plan includes using reusable cold chain packaging. In addition, Amazon is working on insulation packaging to reduce material waste and replace 735,000 pounds of plastic film, 3.15 million pounds of cotton fiber, and 15 million pounds of non-recyclable plastic.
LABOR SHORTAGES In Foodservice
Labor shortages are common among other industries, making this another relatable trend in the food and beverage industry. As a result, hiring workers in the U.S. is becoming near impossible. According to a recent market report, labor shortages are a top concern for 23 percent of food and beverage businesses. The most difficult positions to fill look to be those in the restaurant and foodservice sectors. It’s not just the hiring of new workers, but retaining them as well.
Workers are leaving the industry due to a combination of burnout, low wages, and a desire for better work-life balance. Because of this, restaurants and foodservice companies have had to reduce their hours or limit their menu, while consumers have felt it in longer wait times and less personalized service. With good customer experiences being paramount to a company’s success, resolving this issue is critical.
For this reason, advanced technology can help remove some redundant tasks and help supplement amidst labor shortages. For example, those in the bar sector are being introduced to self-pour technology, which uses RFID tracking and allows customers to pour their own beverages. .
CONSUMERS ARE MORE COMPLEX
Over the years, consumers and their choices in food and beverage and their preferred shopping habits, have become more complex. Because of this, there is a greater assortment of products than ever, with more items requiring temperature control as consumers move away from processed foods and look for fresher, healthier items. Consequently, the supply chain for grocery continues to evolve as the message from consumers is clear. They want what they want, when they want it, where they want it, and expect businesses to respond to their demands.
Continued Decline of In-Person Shopping
In speaking to consumer shopping preferences, it looks like online grocery shopping, food delivery, and food subscription boxes are here to stay. Many consumers prefer the option to receive food and beverage products at their door. For instance, in recent a study by Drive Research, the use of grocery delivery services in 2024 have risen 56 percent compared to 2022. Additionally, the use of grocery curbside or pickup in 2024 have risen 100 percent compared to 2022, further showing the decline of in-person shopping for food and beverage items.
Cost of Food and Beverage Products a Large Concern
Additionally, inflation and rising costs for everyday items, including food and beverages, have consumers rethinking how much and what brands they buy. For example, a recent study showed 54 percent of respondents stating they’ve reduced how much, and unfortunately, 20 percent said they were skipping meals to save money on food. Data from another survey found that 43 percent of consumers are cooking dishes with less meat to save on grocery costs. Others are choosing to purchase cheaper cuts of meat.
Private label brands continue to see growth as shoppers look to save money whenever possible. In fact, according to Numerator, private label brands hold almost a quarter of sales in the grocery sector. The Private Label Manufacturers Association shows that private label sales saw 2.5 percent growth compared to a decline of 0.8 percent by national brands in 2024.
Taste and Experience is a Must
Consumers want to feel good about what they eat. They want nutritious options that alight with their dietary preferences or health goals. In a survey but the International Food Information Council, 54 percent of consumers consider the healthfulness of food in their purchasing decision. Yet, even with the health benefits, they still want their products to taste good, as Datassential shared 35 percent of them purchase items that sound both delicious and healthy.
Consumers are interested in trends like unprocessed foods, natural ingredients, anti-inflammatory, and hydration. Alcohol-free and non-alcoholic beverages are also a rapidly growing trend, with 2 in 5 consumers abstaining from drinking alcohol.
Consumers generally want a positive experience with food and beverage products. While it’s fuel for the body, it can also serve as a source of community, entertainment, and more. In one study, 53 percent of consumers see experiences as essential to their personal lives, especially among the younger generations since the pandemic. They’re interested in trying to tastes and spices, products that bring a sense of nostalgia, or food and beverages that tie in with a story, as shown by the recent increase in pop-up restaurants and bars.
supply chain Challenges
Since the pandemic, supply chains have been seen more of the limelight. As shown by rising costs faced by consumers, food and beverage supply chains have been challenged by shortages of raw materials, disruptions like strikes or a bridge collapse, and a growing demand by consumers for transparency and speed.
Consumers are also becoming more interested in knowing where the products they buy come from. According to a study by IBM, nearly 70 percent of consumers want to see a brand’s sourcing practices. They want to know how the products they buy were manufactured. They’re looking for companies who show concern to how their manufacturing affects the planet’s life span and how their product is raised or grown. Consumers want to feel like the products they choose to buy will make a difference.
According to a Mckinsey report, food and beverage supply chains see supply chain disruption roughly once every three years. A 2023 risk report shows that supply chain executives are concerned about disruptions from climate change, environmental factors, and geopolitical conflicts. Another risk report shows that 73 percent of companies experienced higher supply chain losses within that past two years. Because of this, building supply chain resiliency is a huge trend for food and beverage companies.
ARTIFICIAL INTELLIGENCE & AUTOMATION
Artificial intelligence (AI) is a buzzword across all industries, but how could it affect food and beverage? One way is through providing clearer insights into shopper preferences, helping companies better market to them to grow brand loyalty. It can help with supply chain optimization, helping businesses better understand consumer demand and optimize production planning and management, reduce overstocking, and minimize waste. Some companies, like Campbell Soup Co., are using AI to help with product development, tracking data and discovering what its customers want next.
According to WifiTalents, 62 percent of food and beverage executives believe AI will have a significant impact on their industry within the next five years. With the uses for AI in the food and beverage industry being so extensive, it will be interesting to see how companies make use of it.
There’s also a lot to be talked about in AI and automation for the customer experience. Companies are looking into AI-driven customer service opportunities and ways to streamline customer interactions. You see a lot of this in the restaurant industry with the use of table side tablets, interactive menus, and mobile ordering and payment. AI is used in mobile apps to personalize menus and promotions based on customer preferences.
Growing Cold Storage Demand
The demand for refrigerated warehouses is continuing to soar to new heights. A report from Skyquest forecasts the U.S. cold storage market to increase with a compound annual growth rate of 13.5 percent through 2031, expecting to reach a value of $118.8 billion.
Temperature-controlled storage is critical to many sectors, from grocery to pharmaceutical companies. The growing demand for cold storage facilities comes the adoption of automation and technology, the popularity of ecommerce and demand for faster delivery, as well as online grocery platforms. There’s also a thriving demand for convenience foods – those that are usually chilled but ready to eat with little to no preparation.
STAY AHEAD OF TRENDS IN THE FOOD & BEVERAGE INDUSTRY
No matter the trends in the food and beverage industry, having a logistics resource, consultant, or expert is one way to stay ahead. Whatever phrase you want to use but ultimately, have support on your side for any complex situation. This is where a third-party logistics company (3PL), such as Trinity Logistics, can come in. We can help you find creative solutions to your logistics challenges.
Now, you’re likely wondering, “why work with Trinity Logistics?” For one, we’ve been serving cold chains for over 45 years! Whether you have a complex challenge or just need help with one shipment, we have the experience and quality carrier relationships to meet your needs.
You can also count on us to stay knowledgeable on what’s going on in your industry so you can stay updated too. We know that even in times of supply chain disruption, your industry doesn’t stop, so neither do we.
And lastly, what makes Trinity unique from other 3PLs and what our customers praise the most is our exceptional People-Centric service. We’re a company built on a culture of family and servant leadership, and that culture shines through in our service to you. It’s our care, compassion, and communication that you’ll notice and appreciate.
If you’re ready to have Trinity Logistics on your side for logistics support and expertise, no matter the industry trends, then let’s get connected.
DISCOVER HOW WORKING WITH TRINITY CAN BENEFIT YOUR COMPANY STAY UP-TO-DATE VIA OUR EMAILHow does the cold chain process differ from your typical supply chain? The cold chain is a variation of your standard supply chain. It involves the movement of refrigerated or frozen products from temperatures of two degrees Celsius (35 degrees Fahrenheit) all the way down to negative 70 degrees Celsius (158 degrees Fahrenheit). The cold chain involves industries such as food and beverage, pharmaceuticals, and chemicals.
WHAT IS THE COLD CHAIN PROCESS?
The cold chain process is a logistics management process for perishable products that need refrigerated temperatures to maintain quality and safety from end to end. It involves performing a chain of tasks to prepare, store, and transport products in the cold supply chain.
Logistical planning and management protect the integrity of cold chain shipments. This involves using proper packaging, proper transportation equipment, carefully chosen transportation routes, perfect timing, and visibility throughout to ensure that what’s expected is what happens. The cold chain process is best done by using technology and data at every point of the process.
WHY IS THE COLD CHAIN IMPORTANT?
The cold chain ensures perishable products are safe, of high quality, or potency at the point of consumption or use. Failure to keep those products at correct temperatures results in degradation, discoloring, bruising, or microbial growth. When you have quality cold chain products, you’ll have satisfied customers, meaning greater demand, and the protection of public health.
Additionally, cold chain providers contribute a great deal to the economy and workforce. According to GCCA, approximately $6.1 billion is generated by the refrigerated warehousing industry annually. Not to mention, the North American refrigerated warehousing industry employs more than 62,774 people annually on a full-time basis, with 92 percent being permanent employees versus contract or temporary.
WHAT ARE THE MAIN ELEMENTS IN THE COLD CHAIN?
Storage
The cold chain starts with the storage of the product at a refrigerated facility. If manufacturers of cold chain products don’t have storage equipment needed to keep their products regulated, they’ll have to outsource their cold chain operations to a partner who can provide the proper equipment.
Common cold storage equipment and facilities include refrigerated containers, cold rooms, chillers, cold boxes, blast freezers, and vaccine carriers.
Packaging
Temperature-controlled products need correct packaging to maintain their quality. Proper packaging helps reduce the risk of product contamination and ensures energy-efficient storage along the cold chain.
The most common refrigerants used in packaging are dry ice, gel packs, gel bricks, phase change material (PCM), and EPS panels (expanded polystyrene or Styrofoam).
Monitoring
Tracking certain information for specific cold chain products is a necessity. This includes temperatures and other environmental parameters, like humidity levels. Without monitoring, suboptimal conditions can happen and damage the quality of the product.
Cold chain monitoring often refers to the use of the Internet of Things (IoT) or other sensor software. These monitoring systems can detect temperature problems, keep track of all cold chain products on one platform, and improve predictive maintenance through the integration of sensor data with supply chain management software, like a transportation management system (TMS).
Delivery
Cold chain management also involves the delivery of shipments. Delivery is based upon the end-user consumers’ preferred methods for receiving cold deliveries.
WHY IS AN EFFICIENT COLD CHAIN PROCESS IMPORTANT?
Unlike shipping non-perishable products such as furniture, interruptions in the cold chain can result in damage to the quality of the product, making it unusable. An efficient cold chain process uses monitoring and reduces the amount of handling from end to end.
The cold chain industry has standardized temperature zones classified to maintain the quality of products. These classifications are:
Banana
Bananas and other tropical fruits like oranges, pineapples, or even potatoes have a temperature range of 12 degrees to 14 degrees Celsius (53 to 57 degrees Fahrenheit). This helps control ripening during transport.
Pharmaceutical
Most pharmaceutical products need temperatures between two and eight degrees Celsius (35 to 46 degrees Fahrenheit).
Chill
This classification is between two and four degrees Celsius (35 to 39 degrees Fahrenheit) for many other fruits, vegetables, and fresh meat.
Frozen
This temperature range is between minus 10 to minus 20 degrees Celsius (50 to 68 degrees Fahrenheit) for frozen meat, cakes, and bread.
Deep Frozen
Seafood, ice cream, and other frozen foods need colder temperatures at minus 25 to minus 30 degrees Celsius (minus 77 to minus 86 degrees Fahrenheit).
Ultra-Low
This is a new and growing temperature range often for pharmaceutical products that need temperatures reaching minus 70 degrees Celsius (minus 158 degrees Fahrenheit), like certain vaccines.
WHAT ARE SOME INDUSTRIES THAT USE COLD CHAIN?
Food and Beverage
Controlled temperatures are needed for transporting food and beverage products such as milk, produce, or meat. Interruptions in the cold chain can lead to spoilage or bacteria or mold growth. As mentioned above, many fruits like bananas ripen during their shipment.
Pharmaceutical
Many pharmaceutical products need temperature control. This includes products like vaccines, medication, or biologicals, like blood or plasma. Spoilage of these products can mean a loss in efficacy and can become a public health hazard if not caught.
Chemical
Temperature control is critical when it comes to some hazardous chemicals. Specifically, ones that can be susceptible to reactions due to heat release. If heat escapes from a chemical good that requires it to remain at a certain temperature, it can cause a spark, flame, or explosion to occur, not only damaging the product but potentially harming others.
Oil and Gas
This sector uses explosion-proof refrigerated containers on oil rigs, oil tankers, and offshore locations.
Military
The U.S. military must control the temperature of its medical supplies, which often travel long, hard-to-reach areas. Because of this, the cold chain process can become more complicated when handling products for the military.
WORK WITH AN EXPERIENCED PROVIDER
Not all temperature-controlled products are the same. Each product is unique and requires specialized solutions throughout the cold chain. Many cold chain manufacturers are turning to third-party logistics companies (3PLs) to handle their complex challenges in the cold chain process. For your cold chain to be successful, you need to be sure to work with a provider who understands your industry, regulations, and product requirements.
Luckily, you don’t have to look very far to find one. Here at Trinity, we have more than 40 years of experience in specialized industries such as cold chain.
Contact us today to find your customized logistics solution for your cold chain process.
REQUEST A QUOTEAuthor: Christine Morris
Picking up medicine and vitamins from your local store or pharmacy may be a simple task for you. However, shipping pharmaceuticals is a meticulous challenge. Even more so as cold chain logistics often plays a big role in the pharmaceutical supply chain. Let’s dive in and find out what makes shipping pharmaceuticals so complex.
The Basics of Pharmaceuticals
Pharmaceutical companies have made great advances within the past few decades in making medications specialized to certain individuals and rare diseases. These specialized pharma products come in several different types.
One form of pharmaceuticals is biologicals. This includes vaccines, blood, allergens, genes, and tissues. Biologicals have been popular recently due to the demand for a COVID-19 vaccine.
Another form of pharma products are prescribed drugs such as opioids, stimulants, and benzodiazepines. These have a high theft risk and need to be handled with extra security.
Lastly, there are over-the-counter (OTC) medicines like vitamins, minerals, and supplements. All these different types of pharmaceuticals can come in the form of either a liquid, ointment, or a solid.
To learn more about the basics of shipping pharmaceuticals, check out the video below.
Transportation Regulations
The nature of shipping medicine is delicate. Since it can be so complex to ship, regulations are a big thing to keep in mind. Not considering regulations can be detrimental to the flow of your supply chain.
Rules for shipping pharmaceuticals start when manufacturing begins and all through the supply chain. The Food and Drug Administration (FDA) and the Current Good Manufacturing Practices (CGMP) made guidelines for pharmaceuticals to set specific standards for manufacturing, storage, and distribution.
Having standardized vehicle equipment is necessary when shipping this form of freight. If products are being transported by road, each truck must have temperature control and security measures in place. Routine cleaning of the trailer is required in order to prevent cross-contamination of different products.
Another regulation that is crucial in transporting pharmaceuticals is keeping everything on record. Transportation records and training documentation must be stored for all involved parties.
Cold Chain Maintenance
In 2019, cold chain logistics accounted for 26 percent of the pharmaceutical industry. Maintaining cold chain logistics throughout your shipment plays a big part in preserving the quality of most pharmaceuticals. Roughly 70 percent of medicine needs to be climate-controlled. This is why climate-controlled trucks are necessary when shipping pharmaceuticals. Climate-controlled trucks run their cooling unit independently. The refrigeration unit keeps your freight at the proper temperature and provides insulation, so products stay protected from outside elements.
Proper packaging of these products is important. Selecting the appropriate level of temperature-controlled packaging that best fits your shipment will help protect your pharmaceutical products even more. Using insulated containers to prepare your freight for transit can also help protect against exposure to heat, light, and moisture.
Temperature fluctuation as little as two degrees can ruin a pharmaceutical product. Having the vehicle regularly inspected and serviced will help make sure there is no variation in temperature during transport. The key to cold chain logistics is to be proactive so that your freight remains as unscathed as possible.
Risks When Shipping Pharmaceuticals
With valuable freight comes high risks. Without proper temperature control, pharmaceuticals can become ineffective or even deadly. A change as little as two degrees in temperature can ruin a pharma product. Carriers must be diligent with their temperature logs and stay proactive throughout the shipment to prolong the effectiveness of this important freight.
Cargo theft is a big risk when shipping pharmaceuticals. Prescribed drugs like opioids are especially at high risk of theft. Most pharmaceutical warehouses have high security measures, but the majority of theft happens while in transit. This is why it is necessary to find quality carriers that will ensure the safety of your freight.
Another obstacle is that medicine is becoming more specialized. More personalized medicine is being made for individuals with specific and rare diseases. These pharmaceuticals ship at low volume but high value. With specialized pharmaceuticals comes specialized temperatures. It is important to communicate with your carrier what your unique freight needs are in order to deliver safely.
Choose a 3PL with Experience in Cold Chain
Regardless of the type of drug or the shape it takes, all pharmaceuticals need to be handled with great care. This is where a third-party logistics company (3PL) can come in handy.
Shipping pharmaceuticals is a job that requires delicacy and expertise. Choosing a 3PL that has an extensive background in cold chain logistics is the way to go. As a Burris Logistics company, we can offer you cold chain support from production to delivery, or anywhere in between. You can feel at ease knowing your pharmaceuticals will be in good hands.
Want to learn more about our experience in cold chain?
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