*By Waldir Bertolino
Recently, both the market food & beverage how much consumers faced the rise in the price of food and inputs for industrial production. The increase recorded was stimulated by several, albeit interrelated, factors, including increased fuel costs, climate change or unforeseen weather conditions that affected crops throughout 2022. It is important to emphasize that these challenges were not restricted to Brazil. In the United States, the index that calculates the prices of the American economy reached the mark of 7.7% in the 12 months ended in October, which represents the highest rate in almost 40 years. Therefore, it is possible to predict that the scenario of rising prices will continue to impact the food sector in 2023.
In addition, consumers have also become more aware of their health and the search for healthier foods has become essential in their routine. This behavioral change has required food companies to have a greater understanding of customer preferences and demands, and the pressure for quality and food safety is increasing.
All of these factors will continue to concern companies in the sector and will be decisive for the success or failure of organizations in 2023. For complex scenarios like this, the silver bullet will be the investment in cutting-edge technologies to modernize manufacturing processes and optimize the operation of the supply chain. Below I list the main trends for the food and beverage industry in 2023.
Supply chain agility: an unpredictable future is the only certainty we have for the logistics chain. Coupled with price inflation and other external factors such as geopolitical tensions and global chip shortages, the food and beverage supply chain needs planning agility to detect problems quickly and meet demand efficiently.
Companies in the segment must further diversify their options for raw materials and suppliers in 2023 to compensate for possible interruptions in supply. Companies will need to meet demand as accurately as possible to ensure smooth operations and customer satisfaction.
Manufacturing automation: given the pressure to meet the high demand for products, food and beverage organizations will need to invest in Industry 4.0 technologies to optimize their manufacturing processes. The best example is the use of image recognition through machine learning (ML) so that robots can automate manual tasks such as sorting, cutting and slicing.
Rise of artificial intelligence: artificial intelligence (AI) and machine learning (ML) solutions, working in tandem with the cloud, will see greater adoption in various industry sectors, but it is in the dairy industry that we will see the greatest rise of these technologies. AI solutions are able to provide precious insights that help managers in decision-making, who now have an efficient tool to control the right amount of milk to be produced, avoiding waste and accumulation of the product on the properties.
Food innovation: swapping ingredients, buying from alternative suppliers and downsizing pack sizes will be a strong trend next year. Innovation applied to food production processes is an alternative for companies that want to stand out in the market, but it is also a way to contribute to the environment and consumer health.
Pressure for sustainability: As climate change becomes a more serious threat and the pressure for sustainability will be even greater, the food and beverage industry needs to consider strengthening relationships with local suppliers and relying on new technologies to reduce waste of energy, water and foods.
As we have seen, these trends have been guiding the steps of the segment for some years now. However, with all the changes we have been experiencing in recent months, they will gain even more relevance in 2023. And it will be essential for companies to be aligned with these directions, not only to maintain high competitiveness, but also to meet the needs and customers' expectations.
*Waldir Bertolino is Country Manager at Infor
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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