How is COVID-19 changing the Food Industry?

Food industry trends have undergone a sea change during the Covid-19 pandemic. If we look back in history, another major global event that had severely impacted the food and beverage sector was the Great Recession of 2007. But the sheer scale of transformation brought by this pandemic is incomparable to any other happening in the recent past.

Restaurants and bars suffered major losses, and so did warehouses and food logistics service providers. As time progressed, most businesses began to adapt to the altered industry dynamics. Let us understand the key changes in the food industry trends brought about by the pandemic in the food and beverage industry:-

Increasing Consumer reliance on Home Deliveries

Be it for groceries, vegetables, fruits, or cooked food, the number of consumers opting for home deliveries has skyrocketed during the pandemic. Even after stores and restaurants have opened up now, this trend continues. Apart from home deliveries, takeaway groceries are popular food industry trends. Most of these services are routed online, while a few businesses also accept telephonic orders.

Contactless Services are now part of the ‘New Normal’

People are avoiding stepping out unless completely necessary. But there are still a significant number of consumers who prefer in-store shopping and dine-in experiences. For food and beverage establishments today, the focus on hygiene, social distancing, and contactless services is pivotal. Every step in this direction is essential. Little improvisations include using toothpicks to press elevator buttons in hospitality establishments. Some restaurants came up with innovative methods like using robots for kitchen automation and serving tables, installing no-touch faucets, and allowing QR code payments.

Increased Use of AI in the Food and Beverage Industry

The past decade has witnessed the gradual incorporation of technology in the food and beverage sector. With the Covid-19 pandemic striking unexpectedly, technology has acted as a saviour and enabler. AI-run tools are helping food manufacturing and packaging plants to comply with the recently revised, stricter food hygiene and safety regulations. Smart sensors and devices have become integral even for the sorting of raw materials, quality optimization, and maintaining the in-transit and warehouse temperature range for food and beverages.

In restaurants, kitchen automation and robot-enabled food and beverage services play an important role in adhering to the Covid-19 norms. From touch-free fountains and digital tipping jars to contactless faucets and virtual assistants to help with menu choices and seating guests, the foodservice industry is all geared up for a tech revolution.

Use of Data Science in Food Industry Market Research

Before the advent of big data and AI, food industry market research mostly followed traditional postulates. There were vast industry databases that were mostly untenable and a host of unorganized consumer trends that barely offered any valuable insights. Today, the situation has changed entirely with specialized data analyst teams setting foot in this sector to assist businesses to navigate the endless complexities and high-level unpredictability. Food and beverage start-ups leveraging data-backed insights are a lot more efficient, successful, and profitable today.

To Conclude

No doubt, the pandemic has resulted in significant upheaval. But food and beverage start-ups that have tailored their offerings to meet the changing consumer needs have emerged triumphant. Food industry market research displays ample scope for investment in multiple new market segments. The post-pandemic world is witnessing a massive demand for immunity-boosting foods, gut-friendly delicacies, healthy/non-alcoholic drinks, vegan proteins, and food/beverage products with low carbon footprints. Backed with solid data analytics and research, there is massive room for innovation and profitability in the food sector.