Food & beverages industry includes all businesses engaged in transforming unprocessed agricultural materials into consumer food items. The overall industry supply chain involves food processing, packaging, and distribution. It excludes the production of raw foods, which belongs to the closely connected agriculture sector. Food & beverages is a lucrative industry worldwide owing to rising global population, increasing per capita disposable income, and growing organized retail industry. The penetration of e-commerce in the food & beverages industry further propels its growth. The rising trend of veganism and escalating consumption of organic, gluten-free, and kosher food products are among the other factors contributing to the food & beverages industry expansion. At ingredient or B2B level, the industry is segregated into additives and ingredients. Changing consumer preferences have had a major impact on the evolution of additives and ingredients segment. In the current market scenario, ingredient manufacturers are focusing on plant-based, organic, gluten-free, natural, and clean label ingredients and additives. However, as different food categories require various production processes, the food & beverage industry is tasked with unique business challenges. Food companies are always on a schedule to prevent food spoilage. They need to plan for specialized storage and transportation, and practice careful inventory control. Hygiene and safe food handling processes are imperative to prevent the infestation of potential allergens. Therefore, the industry is constantly evolved with the introduction of new ways to produce food for consumers at the best possible price.
In terms of market competition, the food & beverages industry is highly fragmented with the presence of numerous regional and global industry players with vast product lines. To sustain in such highly competitive food & beverages market, vendors are adopting growth strategies such as mergers, acquisitions, product innovations, partnerships, and expansions.
