We are in the midst of a sustainability revolution in food and agriculture and want to stay updated with the latest and upcoming trends in the industry. The Food Tech Congress is hosted annually and gathers the top global food industry investors, entrepreneurs, and government leaders for exclusive talks and hands-on learning experiences. We were thrilled to have our very own Worldfavorian superstar and expert in sustainable food production Najla Abdellatif Vallander attending the Food Tech’s latest congress.
To help you stay up-to-date with the experts' forecast for trends to watch out for in the food industry in 2022, Najla has shared the key takeaways from the congress. Let’s have a look!
New legislation and conscious consumers are crucial drivers for food companies to become more sustainable
There are several drivers that are pushing food companies to go in the sustainability direction. The traditional view on Food supply chains is moving away from the tunnel perspective of optimization, efficiency maximization, and cost reduction, towards operating more sustainably with a deeper purpose. According to Kim McCain, head of Sustainability at PA Consulting, this is a direct result of the pressure and growing awareness from stakeholders and consumers. We’ve seen a rapid growth of new regulations and laws on compliance being introduced in countries all over the world, pushing companies to adapt to smarter and greener supply chains. In addition, the power of conscious consumerism should not be overlooked. Just during the past ten years, consumers have become more aware than ever and started to hold companies accountable for their activities – which has been a key driver for the new regulations and laws that have been introduced.
7 sustainability trends to watch out for in the food industry
1. Increased need for Traceability
Consumers today are not only becoming more aware of what is healthy for them – but also what is healthy for the planet collectively. Product Traceability is thus key for companies to know where the food is coming from and its climate and social costs.
Matias Muchnick, CEO and founder of NotCo pointed out that companies stuck in the mindset that the company itself chooses what the consumers want will not stay relevant in the conscious consumers-era. It is the consumers who are leading the way and setting the trends – not the other way around. So, in order to keep up with the consumers’ demand and the rest of the industry, being able to follow the movement of a food product through all steps in the supply chain is a must.
2. Strengthen brand trust
Speaking of traceability – improving traceability is a great way for companies to strengthen their brand trust with consumers and stakeholders. If building trust hasn’t been high up on your agenda before – it is time to prioritize it as it has been recognized as one of the key trends companies will work on in 2022. Trust is the future that can make or break a brand and is one of the biggest reasons why consumers make the choices they do.
3. Resilience and agility
The world is always faced with unpredictabilities – and companies are on the frontline of these. This became particularly clear during the pandemic, as food companies and their product supply chains have been severely affected and disrupted. “Our supply chains have been optimized to the point of being fragile” Kim McCain from PA Consulting stated. “With all these disruptions (pandemic, climate change) the chains are breaking.” And the best way to capture this unpredictability is through resilience and agility, as stated by Tao Wang, Head of Product Supply Strategy & Transformation at Bayer Crop Science.
4. Reengineering of food supply chains
Tomorrow’s food supply chains will not mirror the operationalization as we know them today. Current global commodities supply chains have been built in colonial systems and the world hasn’t had a reckoning with that yet. Now we see these colonial trade routes being hugely disrupted, and therefore a systematic shift in the way we see supply chains today needs to occur.
Integrating sustainability aspects into the future food supply chains is integral, such as material use, reducing food waste, and sustainable functionalities. One company example leading the way in reengineering food supply chains is Carrier Global, which uses cold chain management technology to reduce food waste in supply chains.
5. Increased local production and lab-grown products
The pandemic has revealed weaknesses and hidden disruptions in our current food systems and supply chains. For example, approximately 80% of food is produced by farmers and is heavily reliant on manual labor. The lockdowns and the restrictions in people’s movement have revealed a new kind of disruption in the food supply chain no one could have foreseen.
This has increased the interest in alternative ways of producing food. Lab-grown and stem cell-based cultured meat has gone from science fiction to reality in a blink of an eye – and everyone is talking about it! 2 Billion USD has been invested in cultured meat start-ups in the past two years and 2021 ended with the biggest-ever investment in cultured meat in December on 308 Million USD!
On top of that, there is also a shift in consumer preference, from imported “superfoods” being trendy – to buying more locally and seasonally. Consumers are becoming more aware of sustainability, including food transportation and carbon footprints associated with what we are eating.
6. Money coming from big Venture Capital funds focusing on food innovation and alternative proteins
As mentioned above, non-traditional, sustainable, and resilient products are attracting investors – especially big venture capital firms. For example, Supply Chain Capital is one such investment firm that invests in seed and pre-seed startups in agri-supply chains. Another one is Big Idea Ventures, a VC fund focusing on food innovation and alternative proteins. The food and agriculture sector is in the midst of a paradigm shift and where today’s capital is being invested in tomorrow’s reality. Fortunately, we’re seeing that the innovations and solutions for today’s challenges are the ones attracting attention and capital!
7. Tech & Data is at the heart of the industry’s sustainable transformation
Elizabeth Fastiggi, Head of Worldwide Agriculture BD at Amazon Web Services, recognized that tech and science must lead the way for the industry’s transformation. With more data, companies will gain more knowledge and become more aware of risks, increase their transparency, and make it possible to ensure sustainability in the supply chain.
With the help of dedicated sustainability technology companies can:
- Manage suppliers and multi-tier supply chains more easily
- Automate the analysis of data and get actionable information that helps make informed business decisions.
- Meet Food industry standards and regulations
- Increase traceability & transparency
- Build trust between the company, industry, and the consumer
Start your sustainability journey in Worldfavor
All in all, companies that use technology for risk management are more likely to mitigate and even prevent a crisis from occurring in the first place. Some companies are frontrunners and act on risks before they occur – while other, more reactive companies are willing to tolerate such risks longer. However, what became clear from the Food Tech Congress 2022 is that today’s customer is not as forgiving as they once were – especially if a scandal could have been prevented if the company only wanted to.
Don’t take the risk to jeopardize your business’s reputation. With Worldfavor’s Supply Chain Visibility solution you gain visibility on every tier of your supply chain with crowd-sourced data. Trace impact, assess risks, and mitigate them effectively. Sounds interesting? Get your free demo today!
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