As we roll into the new year, it’s always interesting to look at what’s ahead for the food and beverage industry. 2021 proved to be another unprecedented year that has once again created both challenges and opportunities to companies within the sector. 

There have been evident changes in consumer preferences relating to safety, sustainability, health, and the utilisation of technology. Throughout the pandemic, this has led to many businesses fast-tracking innovative strategies, new product development, marketing and analysis, forming new trends in the industry. 

Here, we look at some of the biggest trends that will shape the food and beverage industry in the coming year.

A healthier shift in consumer behaviour 

Though the trend towards healthier eating began some years ago, the fear and uncertainty around coronavirus has intensified the public’s demand for more nutrient-dense foods, particularly those that claim to possess immunity boosting properties. As such, healthy choices and plant-based diets for overall health and the health of the planet will continue to rise. 

Not only is the price of meat now swaying consumer purchasing, seeing more people opt for a “reducetarianism” diet where they lessen meat consumption, but it’s predicted that by 2030 the Australian plant-based sector will contribute almost $3 billion AUD in domestic sales. 

There is also a growing interest in the area of gut health, with an increasing amount of research suggesting that gut health impacts on everything from mental health to immunity. The fact that consumer satisfaction with digestive health in Asia-Pacific has dropped from 58 percent in 2018 to 47 percent in 2020, suggests that more people are becoming aware of how their digestive issues impact their overall lifestyle. 

This sentiment will likely see the continued growth in the manufacturing of products, such as fermented foods, kombucha and foods containing probiotics and prebiotics, which are touted as having positive benefits for gut health.

Cellular meat manufacturing 

Companies such as Beyond Meat and Impossible Foods revolutionised the plant-based meat industry, but with technology coming leaps and bounds in recent years, food technologists are looking towards the world of “cultivated”, or “cell-grown” meat as the next big thing. 

Though there are currently fewer than 100 start-ups at various stages of scaling up production on everything from cell-grown chicken and beef to fish, these companies were able to attract roughly $250 million in investments in 2021 from some of the largest animal-protein players. 

Furthermore, with celebrities like Leonardo DiCaprio investing in cell-based meat start-ups such as Mosa Meat and Aleph Farms, there will likely be significant advancement in the cultivated meat market in 2022 as public sentiment becomes more accepting of the concept.

Automation and technology 

Covid-19 certainly hastened the uptake of automation and technology within the food and beverage industry – from hospitality through to manufacturing and processing. 

Online ordering, self-checkouts, touchless payments, food delivery and QR code ordering will continue to thrive in the coming year as consumers embrace the ease of contactless interactions and the demand for off-premises consumption grows. 

Furthermore, with labour and skills shortages predicted to continue in 2022, organisations will begin embracing the involvement of robots and automated systems in food preparation, service and delivery. This has the potential to fill labour gaps, increase operational efficiencies while also creating more sanitary environments. 

Sustainability and waste reduction 

As the world begins to increasingly turn its attention to addressing the issue of climate change, more and more consumers are actively seeking out food products and services from companies they deem environmentally responsible. 

People are looking for upcycled, zero waste, reduced carbon footprints and water conservation practices in the products they purchase. Compostable and Biodegradable packaging has been and remains to be one of the most highly recommended environmental solutions in the food sector, and there will likely be continued hyper-localisation of supply chain, seeing shoppers favour buying from local producers in the face of continued international supply chain disruptions. 

While still emerging as a trend, consumers are also looking at farming practices such as regenerative agriculture—the practice of increasing soil biodiversity and organic matter, leading to more resilient soil that can better withstand climate change impacts without the need for synthetic fertilizers or pesticides. 

Trust and transparency are key for brands seeking ways to stand up to the scrutiny and help consumers make responsible choices along the way.

Sobriety in the spotlight 

The rise in healthier food choices from consumers has also seen an increase in more conscious alcohol consumption. According to marketing analysis firm Mintel, 31 percent of adults over the age of 22 consumed an alcoholic beverage less than once per month or not at all over the last three months. A large driver of the trend is Gen Z, with 24 percent saying they do not drink alcohol often or at all when dining out because of health reasons. 

In fact, data from Endeavour Group, the parent company of BWS and Dan Murphy’s, shows sales of alcohol alternatives have increased more than 83 percent in the past 12 months at its stores. As attitudes towards alcohol continue to shift, we can expect this increase in the number of low-alcohol and alcohol-free alternatives in the market continue.

If you’re looking for staff within the food technology industry, partner with an agency that understands the sector. Bayside Group’s consultants have specific industry experience that allows us to meet our client’s specific needs. Contact us today.