There has been a strong shift in the focus of the food and beverage (F&B) manufacturing sector in the last few years. Industry players now have to deal with evolving consumer preferences, the shift to automated processes, and sustainability initiatives.
The changes in consumer expectations have also heralded a slew of challenges that make it difficult for manufacturers to maintain growth in this trillion-dollar industry.
In addition, manufacturers are experiencing increased pressure to meet changing regulatory demands, while also facing supply chain challenges and skill gaps. As a result, the industry can no longer rely on legacy systems and fragmented workflows. To keep up, they’ll need to embrace modern digital solutions that can uphold their product’s quality and safety.
Emerging Trends and Challenges in the Food and Beverage Industry
Shift Toward Clean Labels and Transparency
Many of today’s consumers prefer “clean labels” and organic ingredients in the food they purchase, which means manufacturers now prioritize food products made with less sugar and artificial additives. The general notion is “fewer ingredients equals healthier, less-processed food,” which puts greater pressure on manufacturers to be transparent about the ingredients they use in their products. This transparency also extends toward ingredient sourcing, with more consumers demanding sustainability reports or seeking sourcing stories before using a brand. As a result, food manufacturers are now held accountable for their supply chain standards.
Sustainable Food Packaging
Aside from the food they eat, consumers are also being more selective about the format in which their food comes in. Sustainable packaging formats are a growing preference, with consumers actively searching for brands that can authentically commit to eco-friendly practices.
For example, major food companies like Nestlé and Unilever are already embracing this trend. They aim to make the majority of their product packaging from 100% recyclable materials by 2026.
That said, sustainable packaging is an expensive endeavor, which poses financial challenges for midsize food manufacturers that want to adapt to these new changes. A report by Raconteur revealed that 67% of manufacturers lamented the inability to charge a premium for sustainable packaging, while 43% were concerned about its high cost.
Supply Chain Challenges and Labor Shortages
US F&B manufacturers are facing a unique dilemma as raw material costs are on the rise, mainly due to evolving tariff and trade policies. For example, tariffs on agricultural imports and packaging materials can unexpectedly increase costs and affect price margins. As a result, most manufacturers are compelled to absorb these costs.
The food and beverage production industry is also facing a significant labor shortage due to an aging workforce and increased competition for skilled talent. As of early 2024, there were over 600,000 positions waiting to be filled in the food manufacturing sector.
Food manufacturers are unable to provide adequate workforce training to ensure food safety standards, making them vulnerable to operational disruptions and compliance issues.
Meeting Regulatory Requirements
Food and beverage production is one of the most heavily regulated sectors. F&B manufacturers need to comply with constantly evolving regulatory rules, from the Global Food Safety Initiative (GFSI) to certifications and the FDA-regulated Food Safety Modernization Act (FSMA).
They must also adhere to labeling mandates, meticulously document their processes for audits and safety standards, and ensure continuous monitoring. Recently, the U.S. Food and Drug Administration (USFDA) proposed that manufacturers include a front-of-package (FOP) nutrition label on packaged foods to help consumers determine their health quotient at a glance. Food production companies have to comply with these rules or risk incurring heavy fines.
Fragmented Systems
Despite the focus on food innovation, many companies continue to rely on obsolete systems through manual record-keeping. They also rely on disconnected systems that create data silos, making it difficult to monitor quality for food safety processes. This may lead to operational delays, expensive food recalls, wasted resources, or worse, safety incidents.
How Can Alpha Software Help the F&B Industry Overcome These Challenges?
Integrated Platform to Help Meet Consumer Demands
With more customers looking for healthier options and clean labels, manufacturers need to ensure the traceability of their ingredients. Alpha Software can help in this aspect by helping build an integrated platform that:
- Documents and tracks traceability information across the supply chain, at every stage
- Verifies food certifications, for example, checking organic or non-GMO status
- Quickly updates compliance documentation and product labels as per regulatory standards
- Collects data about carbon footprint and other sustainability metrics to meet buyer expectations
For example, the Alpha Software app can help collect data about energy and water usage, waste volumes, transportation emissions, and packaging materials across your operations and supply chain. By routing this data through a centralized system, it can then calculate sustainability metrics to give consumers a clearer picture of the eco-friendly initiatives your company has employed during production.
Central Access to Regulatory Data
F&B manufacturers need to maintain and document all work processes throughout various stages of production to meet stringent regulatory standards. Alpha Software can help you prepare for audits and inspections with one simple but important change: creating a central database for compliance data that’s accessible to all departments.
Using Alpha Software’s automated tools to create digital checklists (auto-updated as per the latest regulatory requirements) and live reports, your team can document key production processes without missing a beat. The system would also allow your team to capture and collect real-time data, including timestamps, electronic signatures, and batch-testing data to present during audits.
Unified Platform That Dispels Fragmented Systems
Fragmented systems in food manufacturing are concerning because they limit real-time visibility of food quality and safety data. This causes your team to manage safety incidents reactively, resulting in production downtime and compliance risks. This is where Alpha Software steps in. With its cloud-based platform, your team can access quality, safety, and production-related data from a single platform, all in real time.
For example, the platform can collect temperature and humidity data from the sensors on food production equipment. At the same time, quality inspectors can collect data and perform quality checks, or even batch-test results conveniently through their mobile phones on the shop floor.
The best part is that Alpha Software uses predictive analysis to process this data and future-proof your systems for quality issues. For example, it may flag unusual temperature fluctuations or issue alerts in case of repeated deviations. By catching warning signs early, your team can swiftly deploy measures to fix issues before they escalate.
Apps to Build a Compliant Workforce
Training unskilled employees and ensuring they adhere to food safety and quality standards is a major challenge. With Alpha Software, you can build no-code apps that:
- Provide compliant instructions and processes for employees to access from the shop floor
- Include feedback alerts and compliance-tracking elements to track employee progress and motivation
- Manage workforce certifications and training records, so all employee information is accessible at a glance.
With these measures, you can build and maintain a skilled, high-quality workforce even in the face of industry labor challenges.
Real-Time Dashboards for Inventory and Supply Chain Management
Alpha Software can help you create a real-time dashboard to manage your inventory and supply chain logistics more effectively. Instead of fragmented reports from procurement teams, you’ll enjoy the benefits of an integrated platform, which collates:
- Supplier performance data
- Inventory levels
- Ingredient origin details
- Supply delivery timelines
- Raw material price surge updates (due to tariffs or policy changes)
For example, if the software triggers an alert about a spike in almond prices, the Alpha Software dashboard can quickly help you highlight available stock levels. At the same time, it can generate a list of suppliers with more stable pricing, allowing you to quickly pivot and adapt to the changes in the supply chain.
Most importantly, Alpha Software ensures your food production unit engages in a continuous improvement and monitoring process. The benefits of investing in our technology are both quick and effective, from simplified adherence to regulatory standards to building consumer trust. And we have the evidence to back it up, too.
Recently, we helped Lloyds Animal Feeds, a feed milling business, to organize their manufacturing workflows by adopting a custom ERP system. 405 Technology, a food distribution company, partnered with Alpha Software to build an app that enabled contactless food ordering and payment.
Ready to become a tech-forward leader in the food and beverage manufacturing industry? We can help. Start building no-code apps for free with Alpha Software today.
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