By Elenne Castro
The year 2020 marked the beginning of a new era for the entire world. Technological innovation applied to remote business models and mobile devices generated a global revolution that has touched all industries, changing the way they offer products and services. During the pandemic, most industries across the globe, including food and beverages, were affected. However, after two years, and with emerging technological advances, these industries have gradually recovered and have even become some of the most favored by the digital ecosystem.
The food industry during the pandemic
One of the most outstanding challenges of the Covid-19 pandemic was surviving the closure of borders and, consequently, the lack of products in many companies. Due to this, Mexico’s Gross Domestic Product (GDP) fell 8.2% year over year in 2020. Agrifood, however, resisted and fell only 0.4% that year. Additionally, it is estimated that while the country’s total manufacturing production stood at 111.4 points in May 2020, the food industry reached 117.3 points, exceeding the 113.7 it reached in the same period of 2020. The food and drink industry remained as stable as possible during the most serious period of the pandemic. Now that a period of new normality is here, the sector has emerged as one of the main players in the industrial sector. It is supported by various factors, among which technology stands out.
Innovate for greater competitiveness and sustainability
Currently, one of the great challenges of the food business ecosystem is to incorporate technology that allows it to respond to the demands of consumers and the market. This innovation, though, must comply with the standards of sustainable processes and a more efficient use of resources. If we look at prepared foods and beverages, at least three types of technology have boosted them:
e-commerce. This model reached a peak throughout Latin America during the health crisis, when prepared food and beverages was the category most purchased on the internet. Over 95% of people ordered food by this means weekly. The main reasons for buying online were delivery at home (55%), saving time and transfers (52%), and avoiding crowds in physical spaces (45%).
Last mile logistics by application. The perfect complement to distance shopping is home delivery. Saving time and money is one of the most appreciated values in this scheme, and therefore this business has increased in popularity. It is estimated that the last mile market in Mexico will grow to US$1.1 billion in 2025, 175% more than in 2020. Within this area, the delivery of food and beverages has strengthened. The report “Trends for Food Service to 2022,” by Simplot and GlobalData, reveals that “dark kitchens” (commercial cooking facilities for food consumed off-premises) will be a more viable option for restaurant entrepreneurs in Mexico, as in large part they represent a cheaper alternative in terms of personnel and operating costs than other options.
Use and management of data. Through the large amount of information that is generated daily, known as APIs (application programming interfaces), the prepared food and beverage industry has developed automation models. From these, one or more application can communicate to streamline order processes. Requests and deliveries have managed to optimize time and save money.
The main challenges for food companies
CIAL Dun & Bradstreet indicated that despite the stable scenario presented by companies in the food sector, it faces various challenges: growth in demand due to population increases; implementation of more environmentally-friendly processes; the promotion of local consumption; and a greater adaptation to technology.
