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 EMAILWhile many of us are soaking up the last of summer’s sun and fun, food manufacturing supply chains are readying for the upcoming holiday food rush.
Have you ever noticed a lot of our favorite memories are surrounded by food? When we go to celebrate something like a birthday, anniversary, or special achievement, it usually involves food. It’s no surprise then that over the holiday season, nearly 165 million consumers across the U.S. purchase food and beverages to celebrate, according to a study from Cornell. As the holidays soon approach, food consumption surges, with the average American indulging up to an extra 440 calories per serving!
The increased demand and tight holiday deadlines can present challenges for many food and beverage companies with their logistics. This is in addition to already facing a competitive peak shipping season! However, by understanding the dynamics of this unique period of time, shippers can ensure success is ahead of them. First, let’s dive into some fascinating facts and insights about food during the holiday season. Then, we’ll follow that with some essential tips so your company can be prepared for the holiday food rush!
Holiday Food Supply Timeline & Stats
The Holiday Food Surge Begins with Fall
The holiday food rush first begins with the arrival of fall flavors. Pumpkin spice, now seen as the quintessential flavor of fall, has seen a 47 percent increase in sales, as reported by The Guardian, within the past five years. In 2023 alone, Datassential reported 144 new limited-time offers that featured pumpkin on major restaurant menus. From the infamous Pumpkin Spice Lattes (PSLs) to pumpkin soups and ravioli, this flavor dominates the season. But we can’t forget another fall favorite – apple. Food and beverage items with caramel apple were one of the highest-indexing flavors last fall.
Halloween Signals Significant Holiday Food Consumption Increase
Halloween is a major milestone in the holiday food timeline, with 65 percent of consumers participating in the festivities. In fact, of all 172 million that celebrate the spooky season, 95 percent of them purchase candy. Even more staggering is that a quarter of all the candy sold annually comes from Halloween sales. It’s not all about the sweets, though! Pizza is the most popular dinner staple on All Hallow’s Eve, according to Grubhub. There’s also the annual tradition of carving a pumpkin, with Statista reporting roughly 154 million Americans partaking in the activity in 2023.
Dia de Los Muertos Celebrations Begin to Trend
Datassential reports that 10 percent of consumers in the U.S. report celebrating Dia de Los Muertos, or Day of the Dead. This holiday is gaining popularity, which means so are the celebratory foods associated with it! Pan de Muerto is one traditional sweet bread that’s essential to the celebration.
Thanksgiving Continues to Drive Food Supply Chain Demand
Thanksgiving remains the most popular fall holiday, with 83 percent of Americans celebrating the tradition. A whopping 46 million turkeys are consumed each year, according to the U.S. Department of Agriculture. Other top holiday staples include cranberry sauce, stuffing, green bean casserole, mashed potatoes, macaroni and cheese, sweet potatoes, and pumpkin and apple pies. That’s a lot of food to prepare for a meal, so 23 percent of consumers will buy a full, ready-made meal from a restaurant. Another 22 percent will supplement with some food from restaurants for part of their feasts.
Sweets, Candy & Chocolate Build Holiday Food Demand at Christmas & New Year’s
Leading up to Christmas, many enjoy hot cocoa, cookies, and other treats. 1.76 billion candy canes, a holiday staple, are made annually for this joyous time of the year. 70 percent of Americans make Christmas desserts, with frosted sugar cookies being the top ones consumed annually. Don’t forget the eggnog! 122 million pounds of it is poured and drunk each year.
When it comes to Christmas dinner, pork dishes are the most popular globally, but turkey still trumps all for the U.S. Other winter feast staples include roasted or mashed potatoes, roasted carrots, gravy, stuffing, shrimp, and lots of Christmas pudding, cookies, and pies. Sweet tooths rejoice as 83 percent of consumers fill stockings with treats like candy and chocolate.
Christmas and New Year’s are among the busiest holidays for restaurants. Both holidays also see a spike in alcohol consumption, with New Year’s Eve being the second most alcohol-associated holiday behind Mardi Gras. Champagne is the fan favorite for those ringing in the New Year.
Logistics & SHipping Tips for Holiday Food Shipping
The holiday season often brings those in logistics the gift of increased demand and decreased capacity. Like most Americans, truck drivers aim to be home for the holidays, trimming the number of available carriers down. Freight of all kinds can increase during the period, further cutting the number of trucks available. Shippers with more specialized requirements, like temperature control, can find even less capacity. Shippers also have tighter deadlines to meet at this time to make the most of the seasonal business.
Overall, the holiday season can be a time of heightened stress and disruption. Given these unique challenges, it’s crucial for food and beverage shippers to prepare thoroughly to appease customers.
Five Tips for the Best Holiday Food Shipping Logistics Outcomes
Tip 1: Keep Inventory Stocked
Running out of stock during the holiday season is a surefire way to lose customers. Track your inventory levels closely and replenish supplies early to ensure you’re well-stocked. By keeping orders moving consistently, you’ll be able to meet consumer demand and avoid causing any disappointment.
Tip 2: Have Backup Shipping Plans Ready
The chances of any disruptions or delays happening during this season are increased. Having backup shipping plans already prepared is essential to keep your goods moving.
Build relationships with multiple carriers and suppliers, or even a third-party logistics provider (3PL). This way, you’ll have known contacts ready in case you need any help.
Look at alternate modes of transportation and be prepared to quickly shift plans should something happen. Exploring multimodal options can be a great way to diversify risk, add capacity, and protect your freight budget. Having this flexibility available and ready can help you stay on track and your supply chain running smoothly.
Tip 3: Real-Time Visibility is Needed for Success
In today’s supply chains, having access to the visibility you need is crucial. You should either work with a provider that offers it or invest in your own technology, like a Transportation Management System (TMS).
A TMS can be very helpful during the holiday season. It can help you with routing decisions by matching your freight with the best carriers, lanes, and rates. In addition, it will allow you to optimize the in-house processes of your transportation network – which can be helpful during busy and slow seasons. By selecting the best carriers and optimizing your routes, you’ll not only increase your service but reduce your risk.
Using a TMS also gives you data-driven insights to better manage disruptions, reduce downtime, and budget your logistics spend. Data analytics can help you recognize which carriers are most likely to have the capacity, saving you time arranging your shipments.
Tip 4: Communication and Collaboration
Effective communication is key to a successful holiday season. Regularly communicate with all stakeholders, including suppliers, carriers, and customers. Collaborating with your partners during the seasonal planning phase can provide valuable insights and help you identify potential issues before they arise.
Tip 5: Partner with a 3PL
Working with a 3PL can be a game-changer during the holiday season. A 3PL offers access to a larger network of carriers, advanced technology, and expertise in managing complex logistics challenges. With their support, you can ensure your supply chain remains resilient, even in the face of unexpected disruptions.
Treat Yourself with Easier Logistics This Holiday Season
Navigating the holiday food rush can be overwhelming, and that’s why Trinity Logistics is here to be your guide. Like Santa, we’ve been around a while, with 45 years of experience handling logistics during holiday seasons.
Right away, you’ll gain access to our large network of vetted, quality carrier relationships to cover your shipments. But that’s just the start! There are many more benefits to working with Trinity, including:
- Multiple modes of transportation to find the best bang for your buck, support your business growth, or just have a backup plan ready
- Best-in-class technology and customized Managed Transportation solutions available, giving you the exact visibility and data you want
- 24/7/365 support, so no matter what day or time it is, you’ll have the help you need
One benefit that tends to shine above all else? Our exceptional People-Centric service. It’s the trait that makes Trinity different from other 3PLs and keeps our customers returning time and time again. It’s truly our care, compassion, and communication that you’ll notice and appreciate.
Everyone wants to enjoy the holiday season. Why not let Trinity focus on the logistics for your business, so you can go back to doing what you enjoy – helping consumers savor holiday treats and create memorable moments with your product.
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