The Future of Food & Beverage: How the F&B Industry is Going Digital

More businesses in the food & beverage (F&B) industry are now investing in digital innovations due to the fast-paced evolution of technologies and the changes brought about by the Covid-19 pandemic.

Over the past years, digital trends in the food & beverage (F&B) industry provided alternative methods to adapt to consumers’ ever-changing demands. At present, digitalization is still the name of the game as global e-commerce sales accounted for 14.1% of retail purchases in 2019. The figure is projected to reach 22% by 2023.

Companies now turn to online platforms, including social networking sites and e-commerce stores, to bring their products right at the fingertips of consumers. The F&B industry is diverse and various strategies to boost online presence have emerged over recent years. For the majority of businesses, hiring a website design company to build their online store proved to be effective. For others, a competitive marketing team that improved customer engagement in social networking sites became the more fitting strategy.

Market insiders also noted that with the global rise of smartphone usage, detailed information about products is now an important consideration for consumers’ buying decisions. Data released by k-commerce showed that smartphone users ballooned to 3.2 billion in 2019, and is expected to increase by 600 million in the next two years.

One of the booming sectors within the F&B industry is online grocery shopping. According to a 2016 report published by Food Industry Asia (FIA), the top 10 online grocery markets worldwide are located in Asia, including in China, Japan, and South Korea. By 2022, the online grocery market is projected to be worth around USD100 billion. In the United States alone, it is expected to grow by 18% and rake in revenues worth over USD19 billion in 2020.

Yet, as the digitalization of the F&B industry continues to change the market landscape, challenges abound. Supplier and producer costs are factors that businesses should watch out for as they embark on the F&B e-commerce market. Other important considerations include all actors in the food supply chain and information management that is crucial in reducing waste, maintaining product quality and customer relations, and improving services.