Mini Project Report 2

On

“FOOD INDUSTRY”

Submitted in Partial Fulfillment of The Requirements

For The Award of The Degree of

Masters of Business Administration

Submitted By:

MITALI KESARWANI

MBA 2ND Sem

Roll no.- 2100100700005

Batch (2021-2023)

Submitted By: Submitted To:

Mitali Kesarwani Ms Humaira Khatoon

UNITED INSTITUTE OF MANAGEMENT

UPSIDC INDUSTRIAL AREA, NAINI, PRAYAGRAJ, U.P. , 211010

 UNITED INSTITUTE OF MANAGEMENT
A-31 UPSIDC Industrial Area, Naini, Prayagraj – 211010
Ph. 0532–2686070. 2686090 Fax 0532-2687147

Certificate
Mini Project Report – 2,

This is to certify that I Mitali kesarwani, Roll No 2100100700005 student of

MBA 2nd Semester of our institute has prepared a report on the

topic FOOD INDUSTRY ISSUES AND ITS EMERGING TECHNOLOGIES

He has worked on identifying the issues & challenges as well as the application
of emerging technologies in the above industry, under my supervision and has
completed the same in conformance with / partial fulfillment of the provisions of
AKTU, Lucknow.

The work is original and has not been submitted anywhere else in any manner.

Signature……………………………………………..
Name Mr/Ms/Dr…………………………………..
Date……………………………………………………..
Department of Business Administration

Counter signed

Signature…………………
(Prof K K Malviya)
Principal
Date…………..……..……
 *DECLARATION*

This is to certify that I have completed the Mini Project 2 titled “ FOOD INDUSTRY ISSUES

AND ITS EMERGING TECHNOLOGIES” under the guidance of “Mrs Akshita Pandey” in partial

fulfillment of the requirement for the award of degree of Master of Business Administration at

United Institute Of Management, Naini, Prayagraj.

This is an original piece of work and I have not submitted it earlier elsewhere.

Place: Prayagraj Candidate’s signature

Name: MITALI

KESARWANI

Enroll No. 2100100700005

STUDENT ID-23210018
 Acknowledgement

I offer my sincere thanks and humble regard in united institute of management, AKTU

University Prayagraj for importing me very valuable professional project in MBA

I pay my gratitude and sincere regards to my Principal sir (Prof.K.K Malviya) and HOD sir Dr

Vishnu Prakash Mishra for giving me this wonderful opportunity. I would like to thank my

project guide Mrs Akshita Pandey for giving me the cream of knowledge. I am thankful to him

as he has been a constant source of advice, motivation and inspiration. I am also thankful to him

for giving suggestion and encouragement throughout the project work.

I am also thankful to my family and friends for constantly motivating me to complete the project

and providing me an environment which engaged my knowledge.

Mitali Kesarwani

2100100700005

MBA 2nd Semester

 TABLE OF CONTENTS

S.No. Topics

1 INTRODUCTION

2 Objective of the project

3 Review of literature

4 Overview of the industry

5 Issues and Challenges

6 Impact of technologies to resolve issues

7 Suggestive Strategies

8 Learning Outcomes

9 Recommendation

10 Bibliography
 *INTRODUCTION*

The food industry is the complex network of farmers and diverse businesses that

together supply much of the food consumed by the world population. Although

there is no formal definition for the termthe food industry covers all aspects of food

production and sale. Itincludes such areas as the raising of crops and livestock,

manufacture of farm equipment and agrochemicals, food processing,  packaging,

labelling storage, distribution, regulatory frameworks, financing

, marketing, retailing, catering, research and development, and education.[1] The

Economic Research Service of the U.S. Department of Agriculture (USDA) [2] uses the

term food system to describe this entire enterprise. The food industry is a complex,

global network of diverse businesses that supplies most of the food consumed by

the world's population. The term food industries covers a series of industrial activities

directed at the production, distribution, processing, conversion,preparation,

preservation, transport, certification and packaging offoodstuffs. The food industry

today has become highly diversified, with manufacturing ranging from small,

traditional, family-run activities that are highly labor-intensive, to large, capital-

intensive and highly mechanized industrial processes. Many food industries depend

almost entirely on local agriculture, produce, or fishing. It is challenging to findan

inclusive way to cover all aspects of food production and sale. The UK Food

Standards Agency describes it as "the whole food industry – from farming and food

production, packaging and distribution, to retail and catering. The Economic

Research Service of the USDA uses theterm food system to describe the same thing,

stating: "The U.S. food system is a complex network of farmers and the industries
that link to them. Those links include makers of farm equipment and chemicals aswell

as firms that provide services to agribusinesses, such as providers of transportation

and financial services. The system also includes the foodmarketing industries that

linkfarms to consumers, and which include food and fiber processors, wholesalers,

retailers, and foodservice establishments.

The food industry includes:

Agriculture: raising crops, livestock, and seafood. Agricultural economics.

Manufacturing: agrichemicals, agricultural construction, farm machinery and

supplies, seed, etc.

Food processing: preparation of fresh products for market, and manufacture of

prepared food products

Marketing: promotion of generic products (e.g., milk board), new products,

advertising, marketing campaigns, packaging, public relations,

etc.

Wholesale and food distribution: logistics, transportation, warehousing

Foodservice (which includes catering)

Grocery, farmers' markets, public markets and other retailing

Regulation: local, regional, national, and international rules and regulations for food

production and sale, including food quality, food security, food food safety,

marketing/advertising, and industry lobbying activities.

Education: academic, consultancy, vocationalResearch and development:

food science, food microbiology, food technology, food chemistry, and

food engineering

Financial services: credit, insurance

Areas of research such as food grading, food preservation, food

rheology, food storage directly deal with the quality and maintenance of

quality overlapping many of the above processes.

Only subsistence farmers, those who survive on what they grow, and

hunter-gatherers can be considered outside the scope of the modern

food industry.

Food production

Most food produced for the food industry comes from commodity crops

using conventional agricultural practices. Agriculture is the process of

producing food, feeding products, fiber and other desired products by

the cultivation of certain plants and the raising of domesticated animals

(livestock). On average, 83% of the food consumed by humans is

produced using terrestrial agriculture. Other food sources include

aquaculture and fishing.

Scientists, inventors, and others devoted to improving farming methods

and implements are also said to be engaged in agriculture. One in three

people worldwide are employed in agriculture,[9] yet it only contributes

3% to global GDP.[10] In 2017, on average, agriculture contributes 4% of

national GDPs. Global agricultural production is responsible for

between 14 and 28% of global greenhouse gas emissions, making it one

of the largest contributors to global warming, in large part due to

conventional agricultural practices, including nitrogen fertilizers and

poor land management.

Agronomy is the science and technology of producing and using plants

for food, fuel, fibre, and land reclamation. Agronomy encompasses work

in the areas of plant genetics, plant physiology, meteorology, and soil

science. Agronomy is the application of a combination of sciences.

Agronomists today are involved with many issues including producing

food, creating healthier food, managing the environmental impact of

agriculture, and extracting energy from plants.

Food processing

Food processing includes the methods and techniques used to transform

raw ingredients into food for human consumption. Food processing

takes clean, harvested or slaughtered and butchered components and

uses them to produce marketable food products. There are several

different ways in which food can be produced.

One-off production: This method is used when customers make an order

for something to be made to their own specifications, for example, a

wedding cake. The making of one-off products could take days

depending on how intricate the design is.

Batch production: This method is used when the size of the market for a

product is not clear, and where there is a range within a product line. A

certain number of the same goods will be produced to make up a batch

or run, for example a bakery may bake a limited number of cupcakes.

This method involves estimating consumer demand.

Mass production: This method is used when there is a mass market for a

large number of identical products, for example chocolate bars, ready

meals and canned food. The product passes from one stage of

production to another along a production line.

Industry influence

The food industry has a large influence on consumerism. Organizations,

such as The American Academy of Family Physicians (AAFP), have been

criticized for accepting monetary donations from companies within the

food industry, such as Coca-Cola. These donations have been criticized

for creating a conflict of interest and favoring an interest such as

financial gains.

Wholesale and distribution

A vast global cargo network connects the numerous parts of the

industry. These include suppliers, manufacturers, warehousers, retailers and the end

consumers.) Wholesale markets for fresh food products have tended to decline in

importance in urbanizing countries, including Latin America and some Asian

countries as a result of the growth of supermarkets, which procure directly from

farmers or through preferred suppliers, rather than going through markets.

The constant and uninterrupted flow of product from distribution

centers to store locations is a critical link in food industry operations.

Distribution centers run more efficiently, throughput can be increased.

 *OBJECTIVE OF THE REPORT*

The primary objective of the report is understand the food industry and to study about the

issues and challenges faced by food industry. The another major objective of the report is

to understand the emerging technologies in the food industry and its impact.

The following objectives of the report are described as follows:

1. To understand the working of the food industry and its impact on other
industries.

2. To identify the issues and challenges facing by food industries such as

transportation problem, inventory problem, warehousing problem and

distribution problem etc.

3. To identify the emerging technologies in food industry and how these

technologies will help in solving and reducing the current food industry

problem.
 *REVIEW OF LITERATURE*
Food industry plays an important role in order to satisfy community needs with

respect to availability, distribution and quality of food. To meet the needs of different

consumers, manufacturers need to adapt products and services to fit their needs.

Food processing industry has the typical characteristics, due to the nature of the

food products that are relatively perishable, bulky and seasonal; therefore these

characteristics have to be handled properly. This paper aims to review the previous

studies on the food industry, production system in food industry, as well as the

possibility of mass customization application in food industry. Production patterns of

food processing industry are marked with different products structure, in which a

small number of raw materials can be used to produce a variety of end products

according to customer's request. System of food processing industry generally

involves a two-stage process i.e.: processing and mixing. The processing stage often

involves processing of intermediate product. While on mixing stage, intermediate

products are blended into a formulated final product. Literature study shows that the

study on the production system in food industry discussed the scope of production

planning and scheduling, make to stock-make to order strategy, the concept of

decoupling point, the concept of postponement, as well as related issue of the mass

customization (MC) application in the food industry. So far, there are not many

studies of mass customization on food industry. Therefore it is necessary to study

the possibility of mass customization application on food industry, the advantages,

as well as the strategies that can be performed related to the characteristics of

typical food industry. Furthermore, to develop appropriate production systems and

production planning to handle an increase in variation of products.

PRODUCTION SYSTEM IN FOOD INDUSTRY:
A LITERATURE STUDY

Food industry plays an important role in order to satisfy community needs with

respect to availability, distribution and quality of food. To meet the needs of

different consumers, manufacturers need to adapt products and services to

fit their needs. Food processing industry has the typical characteristics,

due to the nature of the food products that are relatively perishable, bulky

and seasonal; therefore these characteristics have to be handled properly. This

paper aims to review the previous studies on the food industry, production

system in food industry, as well as the possibility of mass customization

application in food industry. Production patterns of food processing industry

are marked with different products structure, in which a small number of raw

materials can be used to produce a variety of end products according to

customer's request. System of food processing industry generally involves

a two-stage process i.e.: processing and mixing. The processing stage often

involves processing of intermediate product. While on mixing stage,

intermediate products are blended into a formulated final product.

Literature study shows that the study on the production system in food

industry discussed the scope of production planning and scheduling, make

to stock-make to order strategy, the concept of decoupling point, the

concept of postponement, as well as related issue of the mass

customization (MC) application in the food industry. So far, there are not

many studies of mass customization on food industry. Therefore it is

necessary to study the possibility of mass customization application on

food industry, the advantages, as well as the strategies that can be performed

related to the characteristics of typical food industry. Furthermore, to develop

appropriate production systems and production planning to handle an increase

in variation of products.

th
6 International Conference on Operations and Supply
Chain Management, Bali, 2014

Food industry has the potential and strategic role to satisfy customers by

improving the availability, access, and quality of food consumption. FOOD

industry has certain characteristics of raw materials, i.e., perishable, bulky, and

seasonal. In addition raw material of agricultural product has various quality.

Therefore, appropriate handling required by the type of product and the

corresponding typical characteristics (Hariyadi P., 2012).

In addition, the customers’ needs and wants are changing from time to time.

The changes of customers’ needs and wants tend to be more varied, both in

terms of design, quality, and delivery process. Varied of customers' needs and

wants are demanding the company to be able to produce a product which

varies. This is in line with the pattern of production in the food

processing industry is characterized by a different product structure, in which a

small amount of raw materials used to produce a variety of end products in

accordance with customer demand.

(Akkerman & van Donk, 2009). Therefore, it becomes impossible or inefficient

when producing different kinds of final products are individually.

Alternatively, is to process up to a certain stage and then make variations (van

Donk, D.P., 2001 & Soman, et al., 2004). Food industry has distinct

characteristics compare with other manufacturing industries. According

McIntosh, et al. (2010), there are several factors to distinguish between

the food industry to other manufacturing industries, i.e., chemical change,

maturing cycles/delay and food product decay. With these differences, food

industry production system has a distinctive character as well. Therefore we

need a study of the relevant literature on food industry production system. This

paper aims to review previous studies related to the food industry,

i.e.:production systems of the food industry, as well as the possibility of the

application of mass

customization concept in the food industry.

2. METHOD OF THE STUDY

The initial step in this literature study is to find and collect the article

through the online journal according to research topics, including

through ScienceDirect, Tandfonline, ProQuest, ebooks and

Google Scholar. Keywords that are used are: food industry

production systems, perishable products, and mass customization
.
At this stage there are 45 articles, which includes 39 journals and 4

proceeding articles. List of journals and proceedings of this

literaturesearch results Articles that have been collected are sorted

by topic and its method of use. Topics are sorted by using the term,

namely: food industry, production systems, and mass customization.

While the methods used are sorted by types, namely: modeling, experiments,

case studies, and conceptual/literature review.

 *FOOD INDUSTRY OVERVIEW*

The Indian food industry is poised for huge growth, increasing its contribution to

world food trade every year. In India, the food sector has emerged as a high-growth

and high-profit sector due to its immense potential for value addition, particularly

within the food processing industry.

Accounting for about 32 per cent of the country’s total food market, The Government

of India has been instrumental in the growth and development of the food processing

industry. The government through the Ministry of Food Processing Industries

(MoFPI) is making all efforts to encourage investments in the business. It has

approved proposals for joint ventures (JV), foreign collaborations, industrial licenses

, and 100 per cent export oriented units.

Market Size
The Indian food and grocery market is the world’s sixth largest, with retail

contributing 70 per cent of the sales. The Indian food processing industry accounts

for 32 per cent of the country’s total food market, one of the largest industries in

India and is ranked fifth in terms of production, consumption, export and expected

growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in

Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six

per cent of total industrial investment. The Indian gourmet food market is currently

valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate

(CAGR) of 20 per cent. India's organic food market is expected to increase by three

times by 2020#.

The online food ordering business in India is in its nascent stage, but witnessing

exponential growth. With online food delivery players like FoodPanda, Zomato,
 TinyOwl and Swiggy building scale through partnerships, the organised food

business has a huge potential and a promising future. The online food delivery

industry grew at 150 per cent year-on-year with an estimated Gross Merchandise

Value (GMV) of US$ 300 million in 2016.

Investments
According to the data provided by the Department of Industrial Policies and

Promotion (DIPP), the food processing sector in India has received around US$

7.54 billion worth of Foreign Direct Investment (FDI) during the period April 2000-

March 2017. The Confederation of Indian Industry (CII) estimates that the food

processing sectors have the potential to attract as much as US$ 33 billion of

investment over the next 10 years and also to generate employment of nine million

person-days.

Some of the major investments in this sector in the recent past are:

 Global e-commerce giant, Amazon is planning to enter the Indian food retailing

sector by investing US$ 515 million in the next five years, as per Mr Harsimrat Kaur

Badal, Minister of Food Processing Industries, Government of India.

 Parle Agro Pvt Ltd is launching Frooti Fizz, a succession of the original Mango

Frooti, which will be retailed across 1.2 million outlets in the country as it targets

increasing its annual revenue from Rs 2800 crore (US$ 0.42 billion) to Rs 5000

crore

(US$ 0.75 billion) by 2018.

 US-based food company Cargill Inc, aims to double its branded consumer business

in India by 2020, by doubling its retail reach to about 800,000 outlets and increase

market share to become national leader in the sunflower oil category which will help

the company be among the top three leading brands in India. 

 Mad Over Donuts (MoD), outlined plans of expanding its operations in India by
 opening nine new MOD stores by March 2017.

 Danone SA plans to focus on nutrition business in India, its fastest growing market in

South Asia, by launching 10 new products in 2017, and aiming to double its revenue

in India by 2020.

 Uber Technologies Inc plans to launch UberEATS, its food delivery service to India,

with investments made across multiple cities and regions.

Government Initiatives

Some of the major initiatives taken by the Government of India to improve the food

processing sector in India are as follows:

 The Government of India aims to boost growth in the food processing sector by

leveraging reforms such as 100 per cent Foreign direct investment (FDI) in

marketing of food products and various incentives at central and state government

level along with a strong focus on supply chain infrastructure.

 In Union Budget 2017-18, the Government of India has set up a dairy processing

infra fund worth Rs 8,000 crore (US$ 1.2 billion).

 The Government of India has relaxed foreign direct investment (FDI) norms for the

sector, allowing up to 100 per cent FDI in food product e-commerce through

automatic route.

 The Food Safety and Standards Authority of India (FSSAI) plans to invest around Rs

482 crore (US$ 72.3 million) to strengthen the food testing infrastructure in India, by

upgrading 59 existing food testing laboratories and setting up 62 new mobile testing

labs across the country.

 The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt

international best practices for research in fertiliser sector, which will enable farmers

to get good quality fertilisers at affordable rates and thereby achieve food security

for the common man.

 The Ministry of Food Processing Industries announced a scheme for Human

 Resource Development (HRD) in the food processing sector. The HRD scheme is

being implemented through State Governments under the National Mission on Food

Processing. The scheme has the following four components:

o Creation of infrastructure facilities for degree/diploma courses in food processing

sector

o Entrepreneurship Development Programme (EDP)

o Food Processing Training Centres (FPTC)

o Training at recognised institutions at State/National level

Road Ahead

Going forward, the adoption of food safety and quality assurance mechanisms such

as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard

Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP)

and Good Hygienic Practices (GHP) by the food processing industry offers several

benefits. It would enable adherence to stringent quality and hygiene norms and

thereby protect consumer health, prepare the industry to face global competition,

enhance product acceptance by overseas buyers and keep the industry

technologically abreast of international best practices.

Exchange Rate Used: INR 1 = US$ 0.0155 as of April 17, 2017.

References: Ministry of Food Processing Industries (MoFPI), Agricultural and

Processed Food Products Export Development Authority (APEDA), Media reports

and Press Releases, Department of Industrial Policy and Promotion (DIPP), Press

Information Bureau (PIB), Confederation of Indian Industries (CII), Union Budget

2016-17, Union Budget 2017-18

MarketResearch.com offers food researchers and industry professionals one

place to gain business and market intelligence information to make informed

decision on current and future world food trends through convenient reporting

options. The information covers insight into size, segmentation and growth of

global markets which provides varying perspectives on food research. The

reports cover topics that can outline and document the entire food sector which

can be broken down into food types, meal specific foods, cultural meals,

ingredients, specific dietary and health choices, food regulations, packaging,

manufacturing and much more. Culinary trends can be accessed through

Culinary Trend Tracking Series (CuTTS) which provides insight into the trends

which shape and reshape food service and retail sectors of the food industry

. Reports can be tailored to address current consumer drivers, industry trends

and changes, information on industry leaders, market share and market

forecasts. Food industry professionals can focus on research and development,

marketing, planning or business operations by using the reports to analyze the

existing market to create new business opportunities. MarketResearch.com

provides the business intelligence necessary to stay abreast of this highly

Future trends in the food industry

1. In the next 3 years, plant-based products will grow at a rate of 10 to 20%

each year.
Since 2019, plant-based foods have begun to develop rapidly, and today
the

food industry believes that this trend will continue. Plant-based foods
refer

to foods made by replacing animal protein with plant protein. Among the

plant-based foods currently on the market, plant dairy products, plant

meat,

and plant eggs are more mature. The main raw materials include beans,

nuts, oats, coconuts, etc.

It is estimated that by 2024, plant-based foods will grow at an annual rate

of

10 to 20%. Health, diversified diet, sustainable environment, and

diversified
 tastes are the reasons that promote the continuous growth of plant-
based

foods. In the future, there will be more new and different types of plant-

based products, such as snacks, sauces, cheese, creamer, and other plant-

based products will gradually appear on the market.

2. Good prospects for functional foods such as immune system products

and

probiotics.
Functional food is another development trend in the food industry in
2021.

The line between health supplements and grocery products is getting

blurred, which means that suppliers are adding probiotics, vitamin C, and

other ingredients into foods to support the better immune system and
other

functions.

Sixty percent of consumers are looking for more foods and drinks that
can

enhance immunity, and one-third of them said that they would pay more

attention to the health of the immune system in 2020 than in 2019.

Therefore, consumer demand for food that supports the immune system

and relieves stress will further increase in 2021.

In addition to immune-enhancing foods, another high-profile functional

food area is probiotics. ADM said that probiotic-related products will be

an

important area for food and beverage innovation in the future.

3. Sustainable development is the focus. 65% of consumers hope that their

daily actions will have a positive impact on the environment.

Sustainable development is still the focus of industry development. If

food

companies want to continue to develop in the next 30 years, increasing

sustainability is one of the things that must be done.

Based on sustainability considerations, consumers will be affected to

purchase foods such as cereals, beans, and algae. When buying fruits,

aquatic products, and other foods, consumers will also consider whether

they can reduce waste and recycle. Whole Foods also pointed out that

recyclable food is one of the top 10 trends in 2021, and more and more

packaged foods are beginning to use waste as raw materials.

4. Product transparency is critical to consumer trust, and consumers expect

more transparency throughout the supply chain.

Transparency is one of the most important trends in 2021, which also

includes product sustainability. Transparency builds consumer trust, and

consumers expect food brands to be more transparent throughout the

product supply chain. Consumers want to know where their food comes

from, how it is made, and how it is classified.

Food and Beverage Industry Trends You Can
Expect in 2021 and Beyond
1. An Optimized Supply Chain
Food and beverage companies must optimize their supply chain processes to make them
agile, resilient, and visible in real-time. This will enable them to reduce time to market,
eliminate costly inefficiencies, save costs, optimize operations, and drive sales and
profitability.
2. Use of Modern Technologies
The use of technologies like AI and ML, automation, and advanced analytics, is enabling
food and beverage companies to reduce human error, cut down on product wastage,
lower storage and transportation costs, reduce lead time, optimize service time and
quality, and create happier customers.

3. Transparency and Sustainability

Consumers are keen to know more about where their food comes from and how it is
made. Food and beverage companies must up their transparency and sustainability
game to ensure their consumers know how humane and sustainable their products are
in order to maintain their competitive edge and keep their consumers happy.

4. Waste Reduction
Reducing food waste is imperative for businesses not just to cut down on unnecessary costs,
but also to reduce their planetary impact and optimize organization sustainability.
 5. Increase in Demand for Plant-Based Foods
For increasing fitness, supporting weight loss, and leading a healthier lifestyle, consumers are
seeking more plant-based foods. As a result, food and beverage players across the industry
are beginning to launch vegetarian/vegan alternatives of their products.

Summary
Even though the food and beverage industry continues to face pandemic-induced challenges
like increased restrictions, demand shocks, and sourcing issues, the result is a more
resilient, agile, and re-invented industry that knows how to make its consumers happy
and is ready to take on future bottlenecks.

Related Articles
 3 Different Ways Artificial Intelligence and Machine Learning is
Transforming the Food and Beverage Industry
 4 Ways Food Technology is Turning Tables in the Food Industry
 5 Ways Big Data and Analytics is Revolutionizing the Food Industry

*ISSUES AND CHALLENGES*

1. Enforcement of Plastic Ban

Food and beverage companies and manufacturers are now striving towards
making the food manufacturing process highly conducive to the environment by
adopting numerous recycling practices. In 2021, the need for deploying green
business practices right from production to packaging and supply chain
management will become very important to tackle the current issues in the
food and beverage industry.

2. Stringent Regulatory Landscape

Most of the food and beverage companies adhere to the regulatory norms
perfunctorily. But the consistent changes with respect to surplus production,
waste disposal, quality of food, raw material, and documentation are emerging
out to be major hurdles for food and beverage manufacturers. To deal with
such challenges, companies in the food and beverage industry need to
improve their business operations right from manufacturing to distribution
processes.

3. The Pervasive Presence of e-Commerce

Another major challenge that the food and beverage industry is facing in 2021 is
the challenge of improving online visibility. Today consumers have become
more tech-savvy and digitally informed and this has raised their expectations.
Unlike e-commerce companies, food and beverage companies are still lagging
when it comes to analyzing their online presence. With the emergence of the
newer market, changing nature of consumer spending, and advancing
technology, it is high time for companies in the food and beverage industry
to focus on marketing products online. This can also help them serve their
customers better and stay ahead in the competition.

4. Rise of Veganism
With the increasing number of consumers turning vegan, the demand for meat
and other products has witnessed a significant decline. This has posed a serious
challenge to the food and beverage industry. Food and beverage manufacturers
today need to maintain their reputation with regard to ethical treatment of
animal concerns. As a result, companies have come up with meat-free
alternatives to keep the retail and supply chains running.
 “IMPACT OF TECHNOLOGY TO RESOLVE ISSUES”

Robotics in the Food and Beverage Industry: What's New

in 2022
The use of robotics in the food and beverage industry is booming right now.

Manufacturers are increasingly turning to robotic automation to help keep

up with the rapidly changing consumer habits around food and beverage

consumption.

What has changed recently so that robots are more popular in the industry?

How can you start using robotics in your food and beverage company?

What do you need to know to keep on top of the latest trends?

Here are some current robotic developments in the food and beverage

industry for 2022.

Why robotic automation is booming in the food

industry in 2022
As reported by industry publication Food Navigator, the amount of robot

stock operating in food and beverage manufacturing has almost doubled

since 2014. It's predicted that the number of robots per 10,000

employees in the industry will rise 47% over the next 5 years and that

the food robotic market will be worth $2 billion by 2028.

This is quite a big deal for an industry that has traditionally lagged

behind other manufacturing industries in its use of automation. Various

factors are contributing to this increase in robot use in the industry.

In part, it is just a demonstration of the wider adoption of robotics across

manufacturing sectors. However, there are more specific changes in the

food industry that are causing robotics to thrive right now.

These changes include:

Increased food regulations.

Requirement for digitization.

Focus on efficiency and sustainability.

Skills shortages in the jobs market.

Changing consumer habits around food and beverages.

Robots are an increasingly popular tool that companies are using to

navigate these changes in a way that remains profitable.

6 robotic trends in the food and beverage industry

 1. Dark kitchens

A dark kitchen is not just one that has a broken lightbulb. Dark kitchens are

part of a completely new business model for food producers that has

accelerated through the Covid-19 pandemic

.
Also known as ghost or cloud kitchens, dark kitchens are optimized for

delivery rather than for seated customers or conventional takeaway.

Robots can be used anywhere from packing and palletizing all the way to

food preparation itself in fully automated dark kitchens.

2. More Robot applications

Many food and beverage operations still include a large number of manual

processes. The presence of human workers can make it hard to

completely automate the entire food manufacturing workflow with

conventional automation.

Collaborative robots offer the possibility for companies to automate just a

small part of their process, such as with robotic palletizing or pick and

place. New examples come up all the time of food and beverage industry

using robots.

The food and beverage industry has experienced some seismic shifts

recently.
The Covid pandemic, for example, introduced a new set of demands on

food manufacturers as consumer buying habits changed almost

overnight. Panic buying during 2020, for example, showed how ill-

prepared many companies were to respond quickly to changing product

demands. Many more people also started buying food and beverages

online, which revealed the gaps in the logistics of many companies.

Here are 6 trends in the food and beverage industry that robots are

helping companies to manage.

3. Increased focus on food safety

Food safety has always been extremely important in the food and beverage

industry. However, Covid-19 threw this need into sharp focus

Manufacturers were required to check and improve their food safety

across the board.

Robots can help to improve food safety by removing the need for human

touches. Plenty of food manufacturers have reduced the risk of cross

contamination in their facilities by using robots for particular food handling

tasks.

4. Digitization

Plenty of industries are experiencing a shift right now as companies are

 under demand to digitize their operations Food and beverage industry
digitization

inventory tracking, and advanced order processing.

Food palletizing is one task that has undergone digitization recently.

Thanks to improvements in robot programming and related computer

systems, companies can now quickly change the pallet designs and

layouts to accommodate changes in their product lines.

5. Sustainable packaging

There's also a drive right now for more sustainable packaging options for

food and beverage products, with companies looking for ways to reduce

unnecessary waste. According to some figures, up to 40% of the food

produced is not eaten.

Advanced packaging technology and materials can be used to reduce this

waste. Robots can also reduce unnecessary waste in the packaging

process.
6. Instant scalability

One thing that the Covid-19 pandemic made very clear is that the market

can change very quickly. Food and beverage manufacturers may need to

scale their production almost overnight to respond to changes in the

market and supply chain.

Collaborative robots are a great way to scale production in a smart way.

For example, our case study of manufacturer Alliora shows how the

company used robotic palletizing to scale their production in 2021.

A highly popular robot task in the food and

beverage industry
What task can you choose to improve your food and beverage

manufacturing process in 2022?

There are many great options for robotic automation that could be suitable

for your business.

One popular option right now in the industry is robotic palletizing. Like most

food and beverage manufacturers, you probably need to palletize and

depalletize your products and materials. Robotic palletizing is a quick and

easy solution for this.

You can learn more about robotic palletizing on our applications page.
 *SUGGESTIVE STRATEGIES*

1- Forcast the demand to your best ability.

2-For young brands,consider alternative methods of introducing your

brand.

3-lower your trade spend.

Brand Positioning Your Restaurant

So what is your outlet or restaurant offering exactly? Are you a bakery or

a bistro? Do you identify yourself with the people in your area or rather
do they identify with your offering.

if you are a Mexican restaurant that offers amazing fish tacos in an area
where people love American steaks and burgers, you have two things to
establish.

Firstly you have to make people aware that tacos are yummy too and
secondly you score advantage of being the first one of your kind in that
area.

You also need to realize whether you want to be a family restaurant

offering beverages for the whole family or also wish to offer beer like
‘Chilli’s’ does.

Packaging Your Product

Let’s go by the old adage, “A book is judged by its cover” in the same
way a product is judged by its packaging. One of the biggest ingredients
that marketing professionals concentrate on is the packaging of the
product.

This does not only include the literal packaging. Rather, it starts with the
basic logo design of your brand to the menu card and how it is presented
on the table. Sometimes the logos on your cutlery can have a strong
impact on your consumers.

Make A Statement With Your USP

Perhaps your angel investor or your partner is investing in your idea

because there is potential in it.

The biggest potential that most investors see is the USP or the Unique
Selling Point, which can be anything from making the best cream
cheesecakes in town to using only organic or vegan ingredients in the
menu for your food truck.

Hence, it should be showcased in your packaging. For example, a brand

as simple as Baskin & Robbins stands out because it makes an effort to
come up with new flavors every month.
 LEARNING OUTCOMES

• Learn to generate new strategies and solution which help

industries to develop more.

• Learn to think of solution and strategies from a business point

of view.

• Learn to create a report on a existing problems and issues

which industries are facing at the moment.

• Learn to understand the problems of industries and how to

cop-up with that situation.

 *RECOMMENDATION*

• Design your facility layout for future growth.

• Plan for food-safe facility expansions.
• Consider geographic expansion.
• Prepare for automation and robotics.
• Put quality and safety first.
 *CONCLUSION*

Along with many other intersecting factors, food and beverage marketing
influences the diets and health prospects of children and youth.

Food and beverage marketing practices geared to children and youth are out
of balance with healthful diets, and contribute to an environment that puts
their health at risk.

Food and beverage companies, restaurants, and marketers have underutilized

potential to devote creativity and resources to develop and promote food,
beverages, and meals that support healthful diets for children and youth.

Achieving healthful diets for children and youth will require sustained,
multisectoral, and integrated efforts that include industry leadership and
initiative.

*BIBILIOGRAPHY*

https://blog.robotiq.com/robotics-in-the-food-and-beverage-
industry-whats-new-in-2022

https://www.nap.edu/read/24849/chapter/5