Food & Beverage Industry Transformation
Consumers demand for more flavors, different sizes and eye-catching package is driving industry transformation. Retail food market competition has increased because of alternative channels including warehouse clubs, supercenters, drug stores, mass retailers and convenience stores, online retailers and grocery delivery services. This fierce competition for the consumer’s dollar continues to drive rapid change through mergers and acquisitions among grocers. In 2016, the number of transactions more than doubled from the year before.
Grocery retailers are creating more innovative shopping experiences that emphasize fresh, organic and prepared food options. These continually evolving changes are creating more pressure on the traditional food retail model driving consolidation and cost efficiencies throughout the supply chain.
Food suppliers are consolidating as well. “In the next decade, the world’s 7 billion consumers will have more than 70% of their choices provided by 300-500 companies. Future competition will not be between companies, but rather supply systems”, states MHI.
Learn more, from MHI’s article, how the food and beverage transformation will impact the supply chain.