05, September 2024
The food and beverage industry encompasses the production, processing, distribution, and retail of food & drinks contributing to the journey from farm to table. The UK Department of Environment, Food & Rural Affairs stated that the total consumer spending on food and alcoholic beverages was £245.5 billion in 2023, whereas the average weekly expenditure is around £41.11 per person. These statistics indicate a robust demand for food and beverages, making the sector a critical part of everyday life. Evidently, this industry stands as a cornerstone of the global economy, influencing cultural trends, consumer habits, and even government policies.
Recently, a 2024 Food & Health Survey released by the International Food Information Council examined some popular food beliefs among people. Here are some interesting findings from the survey:
These numbers show that over the past few years, the food and beverage sector has been highly responsive to worldwide trends, with a growing focus on health and wellness, sustainability, and innovation. Amidst this growth, the rise of plant-based foods, organic food products, and convenience foods are just a few examples of how this industry adapts to modern consumer demands. Similarly, technological advancements, such as automation, e-commerce, and food science innovations, are continuously shaping the food and beverage industry.
Let us explore various facets of the food and beverage industry, like alcoholic spirits, the rise of processed foods, the importance of sustainable food packaging, and how social media is increasingly shaping food trends in current times.
Alcoholic spirits have long held a distinct place in human culture, influencing societies and traditions for centuries. For instance, New England alone boasted over 150 rum distilleries in the late 1700s. Similarly, the origin of rum can be traced back to the 17th century on Caribbean sugar plantations. This marked the beginning of a vibrant and enduring legacy for alcoholic spirits.
From rum and whiskey to the modern-day popularity of cocktails, alcoholic spirits have continually evolved to meet changing consumer tastes. Today, people are increasingly opting for high-quality, artisanal spirits that offer unique flavors and experiences, driving the growth of premium and super-premium segments in alcoholic spirits.
Data from the World Health Organization (WHO) estimates that:
2.3 billion people worldwide consume alcohol
On average, the global alcohol consumption stands at 5.5 liters per person annually
This shows that the alcoholic spirits sector is not just progressing in terms of higher sales but also in how these products are marketed and delivered to a global audience. Brands are leveraging social media and targeted advertising to connect with younger, more discerning consumers who seek both quality and brand ethos.
Discover how the rise of e-commerce is allowing consumers to explore new trends in alcoholic spirits from around the world.
Amidst the excessive consumption of alcoholic beverages and craft beer, there is a growing awareness among consumers about balancing indulgence with health. This has led to the emergence of low-alcohol and functional beverages that blend the pleasure of a drink with added health benefits. Hence, as the demand for healthier alternatives grows, functional beverages are stepping up to offer an innovative solution in the food and beverage industry.
In Japan, approximately 48% of people in their 20s consume green tea daily, compared to 94% of those aged over 50. Thus, the rising consumption of functional beverages can be attributed to several factors, including the busy lifestyles of modern customers and the demand for convenient, on-the-go options that support wellness goals.
Products like probiotic drinks, plant-based protein beverages, Turkish coffee, Kombucha, and Japanese matcha are just a few examples of these beverages. Functional drinks are designed to provide specific health benefits beyond basic nutrition, such as improved digestion, enhanced energy levels, and better immune function.
One of the key trends is the demand for low-sugar and low-calorie options, which leads the brands to cater to health-conscious consumers without compromising on taste. In order to reap the nutritional benefits, functional beverages are infused with bioactive ingredients such as phenolic compounds, vitamins, minerals, amino acids, and probiotics. These components can help in reducing cancer risk, preventing cardiovascular diseases, supporting gut health, enhancing immune function, and improving cognitive well-being.
There is also a noticeable shift towards sustainable and plant-based functional beverages. Products like plant-based protein shakes, aloe vera water, and cactus water are gaining traction. Additionally, the trend of customization in functional beverages, such as DIY smoothie kits or personalized options in cafes/restaurants, reflects the growing demand for tailored health solutions.
For a deeper dive into how these beverages are transforming health choices globally, read here:
As functional beverages redefine our holistic approach to daily diets, this trend is not limited to what we drink—it also extends to what we eat. Consumers who prioritize health in their beverage choices are also seeking out specialty foods, such as kosher, vegan, and halal options. Hence, in parallel with the rise of energy drinks, there is a growing preference for specialty foods that cater to specific dietary needs.
One of the driving forces behind the growth of specialty foods is the increasing consumer interest in organic food, non-GMO, gluten-free, and free from artificial additives. In fact, news reports say that around 50% of UK consumers are opting for healthy food.
As people explore more culinary choices, there is a growing demand for authentic international ingredients and flavors. This has opened up opportunities for small producers and specialty food retailers to introduce niche products to a broader audience.
The key categories of specialty foods encompass kosher, halal, vegan, and vegetarian diets, each with distinct guidelines and cultural significance. Kosher and halal foods adhere to religious dietary laws, while vegan and vegetarian diets focus on ethical and health considerations.
Interestingly, niche dietary trends like are keto diet, gluten-free diet, and paleo diet are becoming more popular for their perceived benefits, especially in improving gut health. Added to this is a vegan diet, which excludes all animal products and requires careful planning to ensure adequate intake of essential nutrients like vitamin B12, iron, and calcium.
Explore how these dietary trends impact consumer choices.
In the current scenario, consumers seek instant yet healthy options that fit their busy lifestyles without compromising on nutrition. This has led to the rise of processed foods—products that combine the health benefits with the convenience of ready-to-eat meals or snacks. Let us examine how processed foods cater to the modern consumer’s needs.
These foods have been a staple of the modern diet, offering convenience and extended shelf life; however, there have been debates regarding health and nutrition. Traditionally, processed foods have been associated with high levels of sugar, salt, and unhealthy fats. In response to changing consumer preferences, food manufacturers are reformulating products to incorporate more natural and wholesome components.
The UNCTAD reports that developing countries in Asia import about 35% of their total food in the form of processed foods, while developed economies import a higher proportion, approximately 48%. In food-deprived regions of Africa, these foods have helped reduce hunger and improve food security. Hence, the popularity of processed foods is largely due to the convenience they offer in the form of extended shelf life.
Despite these merits of food processing, the processed food sector still faces challenges, particularly regarding public perception. A recent study by EIT Food Consumer Observatory involving nearly 10,000 consumers across 17 European countries reveals that the majority believe ultra-processed foods are harmful to their health. To address this, the clean label movement is another significant trend where customers are seeking products with recognizable ingredients and avoiding those with artificial additives and preservatives.
Here is everything you need to know about the health concerns of processed foods.
As processed foods dominate modern diets, people are now concerned about the safety and standards of the products they consume. This has led to a greater emphasis on food safety regulations to ensure that processed foods meet stringent health and safety standards along with nutritional guidelines.
Foodborne illnesses affect 600 million people annually, leading to 420,000 deaths and costing $110 billion in productivity and healthcare, particularly in low and middle-income countries. With increasing global trade and the complexity of supply chains, collaboration between international regulatory bodies and the harmonization of food safety standards is vital. Food safety encompasses a wide range of issues like:
- preventing contamination and- combating food fraud
Some important food regulatory authorities in large economies are given below:
In recent years, the implementation of the Food Safety Modernization Act (FSMA) in the United States represents a shift from reactive to preventive measures, requiring food producers to implement risk-based controls and maintain detailed records to ensure transparency in food safety.
Emerging technologies such as AI, IoT, and Blockchain are also revolutionizing food safety practices by enhancing traceability, monitoring, and compliance throughout the food supply chain. Cold storage plays a crucial role in preserving food quality and safety by controlling temperatures, which slows bacterial growth and extends shelf life, thereby reducing foodborne illnesses.
Get an in-depth insight into the intricacies of food safety and the regulations involved.
People are increasingly concerned about not just the safety of the food they consume, but also the packaging it comes in. Safe, sustainable packaging protects food from contamination while minimizing environmental impact, aligning with modern regulatory standards and consumer preferences. Let us examine how innovations in food packaging are addressing these concerns.
Nearly 67% of consumers consider sustainability when purchasing food products, influencing brands to adopt greener practices. Regulatory pressures are also pushing the industry towards sustainable packaging solutions, aligning with global environmental goals. Hence, traditional packaging materials like plastic have come under scrutiny due to their environmental impact, leading to a surge in the development of alternative materials.
Consequently, food-manufacturing companies adopt eco-friendly materials like biodegradable plastics, plant-based packaging, and recyclable materials to meet consumer demand for sustainability. Edible packaging and compostable options are also emerging trends, offering solutions to reduce environmental impact.
In addition to sustainability, packaging is also being used as a tool for consumer engagement. With the rise of e-commerce, innovative packaging has become an important aspect for brands to communicate their values and create a memorable unboxing experience. Interactive packaging with QR codes that link to digital content or augmented reality experiences is an emerging trend that allows brands to connect with consumers in new and exciting ways.
Innovative packaging solutions are also being developed to extend the shelf life of products and reduce food waste. For instance, active packaging, which can absorb oxygen or emit preservatives to extend freshness, is an example of how technology is being integrated into packaging design.
Curious about sustainable food packaging innovations? Click here to know more.
Interestingly, the visual appeal of food packaging is showcased on platforms like Instagram and TikTok by food vloggers. These influencers play a significant role in promoting trends, with aesthetically pleasing and eco-friendly packaging often becoming a key selling point. Thus, social media amplifies consumer demand for food products and beverages within the online food community.
Did you know that the hashtag #food has attracted over 555 billion views on TikTok?
Platforms like Instagram, TikTok, and YouTube have given rise to a new generation of food influencers who have the power to make or break trends with a single post. Thus, social media has become an indispensable tool for shaping food trends, influencing consumer buying decisions, and driving the success of products in the food and beverage industry.
From viral recipes to food challenges, these digital platforms can now turn niche products into mainstream sensations overnight. For example, the sudden rise of avocado toast, dalgona coffee, vegan diets, etc., can be largely attributed to their widespread promotion on social media.
Social media also offers food and beverage brands a direct channel to engage with consumers, gather feedback, and build community. By leveraging user-generated content, brands can create authentic connections with their audience and foster brand loyalty.
Furthermore, the integration of e-commerce with social media platforms has streamlined the purchasing process, allowing customers to buy products directly from their social feeds. This has opened up new opportunities for food and beverage brands to capitalize on impulse buying and limited-time offers.
Read more on how social media is setting the stage for the next big food trends.
The food and beverage industry is at a crossroads, with numerous trends and challenges shaping its future. From the versatile alcoholic beverages and the growth of specialty foods to the increasing focus on food safety, sustainability, and health, the food & beverage industry is successfully responding to modern consumer choices.
In addition to this, innovation in food packaging and the rise of functional beverages reflect the industry’s commitment to meeting people’s demand for convenience, health, and environmental responsibility. Meanwhile, the influence of social media continues to drive trends and shape the way consumers determine their food choices.
A noteworthy trend is the adoption of AI-led marketing strategies by food brands that help them to remain agile while embracing new technologies and approaches to stay competitive. Thus, by understanding and adapting to these trends, the food and beverage industry is set to meet the needs of a diverse and ever-evolving consumer base in the coming years.
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