It is no exaggeration to say that the last 6 months have been the most unusual we have experienced. Underlined with uncertainty and fear that has invaded our home and professional lives, we have all done our best to adapt to the new circumstances and work towards a future we were not expecting.
Some sectors of the food industry have had an incredibly tough time – for instance the number of vacancies in catering advertised in July was down 61% compared to 2019, reflecting the fall out from closed venues, reduced capacity and cancelled events. Some sectors however, have managed to thrive – adaptable players in food manufacture have been responsive in light of supply issues during the early stages of lockdown, choosing new products, production methods or packaging to meet the needs of a rapidly changing market.
So, how can we be more prepared for the next 12 months in the food industry? We look at three key predicted trends, and consider their potential impact.
Reversing the obesity crisis
We have already seen the early signs of an upcoming government initiative to change the course of the obesity crisis. Research published by Diabetes UK has demonstrated the link between lockdown and increased rates of obesity in children, and an evidence review by Public Health England strongly suggest that outcomes of Covid-19 are worsened in obese adults.
It remains to be seen what role the food industry will play in battling the obesity crisis, but now is a great time for businesses to plan for the future and consider ways they can demonstrate their commitment to the health and well being of their customers. These may include:
- reformulating products to lower fat, sugar and salt levels
- increasing plant based ranges
- training staff in good nutrition to enable good menu planning
- publishing nutritional values on menus and / or websites to encourage healthy choices
- creating healthy eating promotions and recipes
Strengthening the Supply chain
Initial stages of lockdown exposed some weaknesses in the food supply chain – however, manufacturers and food retailers worked tirelessly and effectively to get products back into stores and homes. Despite this being an unprecedented situation, that early period forced food businesses to reassess the suitability of supply processes.
A number of trends have begun to emerge from this work, and we will continue to see changes throughout the next 12 months, emphasised by the potential supply issues caused by Brexit. The trends have included:
- a greater emphasis on local, seasonal produce – with the additional benefit of decreased environmental impact
- a more considered and collaborative use of resources in food production – for instance sharing plant facilities or warehousing space, or multi purposing production lines
- increased scrutiny on safe production processes, including good health and well being of industry workers in light of covid spikes centred around production facilities.
Now more than ever, good practice at all stages within the food chain will place business in the best position to take advantage of new market opportunities, maximising their potential to survive and grow.
Rising success of the small food business
The economic situation is undoubtedly tough for all food businesses, especially those without a corporate safety net to keep the cash flow going. However, lockdown has demonstrated how agile and adaptable small businesses have been and continue to be as the rules and landscape shift on a weekly business
Some great examples of small business agility have been:
- Pubs and restaurants adjusting their eat in offering to takeaways or meal box options
- Food retailers taking their sales out into their community, using church halls, delivery services, or even repurposed ice cream vans to get supplies to vulnerable people
- Businesses recognising and solving community problems – including the micro brewery who provided a reciprocal collection service for food bank items donated by customers of their delivery service.
- Artisan producers joining forces to create ‘lockdown luxury’ boxes – sharing storage, packing and delivery resources to reduce cost and environmental impact and increase customer base
Small businesses can suffer from higher proportional overheads, without the economies of scale enjoyed by larger companies. However, they often have the benefit of entrepreneurial spirit, an adaptable and loyal staff body and the agility to change direction quickly and make change happen. In these adverse times, these skills will continue to be invaluable and as circumstances develop, the rise of small businesses is very welcome .