Food for thought:

The future of the

food industry
Your complete guide on what to expect in the
food industry, for this year and beyond.
Food for thought:
The future of the
food industry
2021 was a turbulent year for the food
industry, with challenges including the
ongoing implications of the pandemic
and fragmented supply chains affecting
businesses worldwide. These have also
carried over into 2022, in addition to new
trends forcing companies to adapt their
processes quickly.
To combat these, you need to know what to expect going forward in the
industry, and this guide will help your food business prepare for the future.

Contents
A brief overview of the food industry in 2021

Food trends in 2022

Is technology the right answer for food businesses?

Introducing business value:

It’s about more than technology

2
A brief overview of the
food industry in 2021
2021 saw the introduction of a new set of challenges due to the restrictions of Covid-19, with
consumers purchasing more of their goods online as a result. Here’s a brief overview of the top
emerging trends from 2021 and what will likely continue throughout the rest of 2022:

Increase in online grocery shopping The need for businesses to offer increased
According to Mintel, 90% of shoppers still plan product diversification
to look towards digital channels for their groceries Organic food boxes are amongst the most popular food
after the pandemic, and three in five Brits are products, with 37% of all subscribers subscribing to
now online grocery shoppers – up from 50% some sort of food box service2.
in 20191.
People are becoming more aware of the food they’re consuming and
the impact it has on the environment, from transportation to reducing
food waste.

Heightened outlooks on Plant-based diets are trending online,

food sustainability and vegan diets are on the rise
With sustainability goals being introduced by the In the past couple of years, plant-based diets have
United Nations, such as halving global food waste experienced tremendous growth in popularity and
by 2030, these types of initiatives are going to awareness, from online discussions to the number
increase pressure on food businesses. people getting involved in events like ‘Veganuary’. Here
Here are some examples of companies who are making are some key stats you should be aware of surrounding
strides into becoming more sustainable: the rise of veganism6:

6,439
• HelloFresh has started to use compostable packaging,
including paper straws instead of plastic on juice cartons
• Nestlé introduced their AAA sustainable quality program3,
where they teach best agriculture practices towards their

14%
farmers and build solutions to fight climate change Products were registered
with The Vegan Trademark in
• Morrisons removed their best before dates on their milk 2021 alone
cartons4, stating that it will stop millions of pints being poured
down the sink
 esco introduced their Perfectly Imperfect range5, saving
• T
over 44,000 tonnes of fruit and veg since its launch back
in 2016
629,000
People signed up for
Of adults are currently Veganuary this year, up by
following a meat-free diet over 100,000 last year

3
Food trends
in 2022
From processes and technology
to consumers, here are the main
food trends you should keep an
eye out for, if you haven’t already,
for the remainder of the year:

Consumer trends

Increased
Sustainable practices consumption of
and mindset experimental food

Functional
food

High quality food

that meets flexitarian
eating habits

Processes and
technology trends

More robust
management and
traceability processes

Wider use of
automation

Tightening
supply chains 4
Top consumer trends

01 Sustainable practices and mindset

With climate change being a hotter topic than ever before, more
consumers are striving to support businesses who adopt a sustainable
mindset (and shunning those who don’t). So, it’s no surprise that
research suggests a staggering 85% of UK consumers are making
more sustainable life choices7.
Ingredients and packaging provenance are now becoming as vital as the quality of the
product. So, consider how your business can follow responsible ingredient sourcing
strategies and make moves to reduce plastic packaging.

“From a consumer’s point of view, I think everybody is becoming

fully aware that climate change is not something happening
tomorrow, it’s happening now. If you go back five years, people
talked about 2050 and how it’s going to happen in 30 years. The
realisation is it’s here today.”
– Andrew Newton, Food Consultant at Columbus.

Listen to the episode

And this was highlighted in a recent report by Waitrose, where nearly 70% of shoppers
said carbon footprint played a role in the products they purchased8. So, if you can
provide customers with products that are ethically and sustainably sourced as well as
nutritious and high-quality, you can exceed their expectations and boost your reputation.

02 High quality food that meets flexitarian eating habits

In the Whole Foods Market report, “reducetarianism” was dubbed a top trend to watch in 20229.
Reducetarians are “plant-curious” consumers that have reduced their consumption of meat, dairy, and
eggs without cutting them out completely.

Did you
know?

The plant-based market is expected to grow in

the coming years, with Mintel predicting
meat-free food sales will exceed £1.1bn by
2024 – a significant increase from 2014’s
market value of £582m10.

Additionally, 60% of Gen Z and 30% of millennials want to eat more

plant-based foods11. Thus, by introducing these items within your
current ranges, you can adapt to both the vegan and reducetarian
markets effectively.

5
03 Functional food

Consumers don’t just want food that tastes, looks and

smells good. They’re also looking at the role particular food
items can play in promoting good health (especially in the
wake of the pandemic).
Think items like vitamin D-fortified orange juice or yoghurt drinks containing
probiotics (Activia, Yakult etc). Consumers care more about what they’re putting
into their bodies, and they want foods that can deliver multiple things in one bite
(so to speak).

Top tip

The global functional food ingredients market is

expected to reach £137.3 million by 2025 ($100
million)12. So, if you’re looking to rejuvenate your
sales and regain a competitive edge, consider if
‘functional foods’ might be your way in.

04 Increased consumption of experimental food

With hybrid working models in place,

cutting out the commute means more
consumers have time for breakfast.
In fact, during the first lockdown, one
survey found that UK consumers ate
eggs for breakfast 68% more times13 than
in the previous year, while bacon sales
were up 21% and pastries up 25%.

A Waitrose report found consumers

are becoming more adventurous with
their first meal of the day, with dishes
like shakshuka and Mexican breakfast
burritos growing in popularity13.

The increase of experimental food choices has led

to a higher interest amongst younger generations
too. A recent study found that during the first
lockdown, three-quarters of 18-24 year olds
looked at TikTok and Instagram for food recipe
inspiration. With social media activity increasing
year on year (28.5 million users in 2021
compared to 23 million in 201914), we expect the
introduction of more food trends in 2022, so the
need for better product diversification is essential.
Process and
technology trends

05 Wider use of automation

Of course, certain areas of the food industry (like farming,

for example) have been using automation for years. But
labour shortages, inflation and supply chain issues have
made automation a priority for other sectors of the food
industry like food processing, who are among the last to
embrace automation.

Some benefits of automation15 include:

• Improved quality control

When processes are automated, errors and defects can be identified,
isolated, and resolved quicker

• Increased food safety

Gain a more granular view of your food manufacturing processes and Top tip
ensure one process change won’t cause adverse consequences in another
Just make sure your team
• Better efficiency and reduced waste understands they’re not going to be
When deployed correctly, automation can boost efficiency, reduce waste, replaced by robots or machines. In
and improve cost efficiency much more than if your processes relied on fact, these machines will handle the
just human workers repeatable processes, improving
quality, efficiency and freeing up
• Enhanced traceability
more time for workers to focus on the
As soon as a product/ingredient enters your supply chain, it can be
more fulfilling tasks.
automatically scanned and entered into your ERP system, reducing the
risk of human error and ensuring end-to-end traceability

06 More robust management and traceability processes

Considering these demands for healthier ingredients

and more sustainable practices, you should ensure
your existing quality management and traceability
processes are more robust than they’ve ever been.

Some ways you can do this include:

• Product formulation
Documentation ensures quality is consistent across batches and lots

• Manufacturing process control

Sticking to manufacturing best practices and ensuring your workforce
are meticulously following your processes

• Allergen management processes

This reduces the likelihood of product recalls to ensure your
consumers are safeguarded
Allergen labelling changes has also increased the importance of having
an accurate and traceable supply chain after the introduction of the
UK Food Information Amendment – also known as Natasha’s Law.
The legislation is designed to protect allergy sufferers and give them
confidence in the food they buy.
7
07 Tightening supply chains

We’ve seen the recent surge in demand for energy, labour, and transport placing significant pressures on
just-in-time, cross-border supply chains that keep factories open and shelves stocked. And with supply chain
challenges set to continue into the distant future, a key focus for businesses for the remainder of 2022 will be
tightening their operations.

Here are four key tips for you to follow to avoid the implications of supply chain disruption:

Be flexible with your sourcing and distribution strategies

An example of this is Kellogg’s, who managed to quickly source a new supplier closer to home despite
COVID-19 restrictions16

Modernise your manufacturing operations

Think along the lines of a smart, connected factory, access to real-time data and full visibility from farm to fork

Transform your warehouse management

By implementing new technology, you can identify when food demand is going to rise (such as around
seasonal periods), and gain end-to-end visibility on your processes, resulting in minimised food waste

Optimise your production performance

Many businesses overlook the importance of getting their people on board of new processes, which can
lead to talent gaps and confusion within their supply chains. Provide training, support and guidance to
help your teams see why the change is happening and maximise your performance

8
Is technology the
right answer for
food businesses?

Technology brings several benefits that will help you improve profit margins, stabilise supply
chains and delight consumers, regardless of the size of your organisation.

But technology isn’t a blanket solution to all of the

challenges like the trends we’ve covered facing
your business.
Recently, emerging technologies in the food production industry,
such as automation, AI, and machine learning, ensure quality and
keep labour costs low. While some solutions may look like a great
fit on paper, the key is finding the right technology to suit your
specific needs.

So, how do you make the right decision with so many rapidly
evolving technologies on the market?

Know your processes

 esearch thoroughly and always think

R
in terms of need

Identify tech that can grow with your business

Ensure the tech comes with technical support

Don’t take shortcuts with training

9
01 Know your processes

It’s not enough to know that you want to improve processes and grow your business – you need to know exactly
what’s needed to achieve this. Plus, your technology should complement your existing operations.
Start from the ground up and map out your current processes. Get information from your teams who actually do the tasks at each level to give you
a clear view and understanding of what’s happening. If done well, the areas for improvement will be obvious and with this knowledge, you can make
better informed decisions on what is and isn’t needed.

Some areas that you might be hoping technology can help include:

Finance HR Manufacturing Supply chain

End-to-end solutions like an ERP system can join all of these business
processes together and remove siloed data to deliver “one version of the
truth”. Go one step further and invest in food-specific ERP software that can:

• Deal with the variances of ‘living’ products

• Cater for products that need special treatment
• Manage the goods in and out stages
• Handle the complexities of foodstuff
• Prepare for the inconsistency of food products
• Satisfy supply and demand

10
02 Research thoroughly and always think in terms of need

Rushing into a tech implementation will

inevitably end in your business building up
software waste or ignoring it altogether.
Avoid software waste by identifying the key people inside your
organisation who will be affected by the technology. They have
a clear vested interest in finding the most effective solution and
should be the team that drives your research and evaluation
efforts. Ask them about their expectations and let them come up
with new ideas.

Plus, conduct software assessments at least twice a year to

prevent any cases of duplication. It can be tricky to know what
new tech to go for, and that’s why many food businesses decide
to work with a digital transformation agency in order to:

• Mitigate risks
• Take pressure off their in-house team
• Control the cost of transformation

03 Identify tech that can grow with your business

Implementing new technology is likely to be a

significant investment, so carefully consider what
you’re going to buy. Take the time to look around
food-specific business forums and see what
people are saying. That way, you can find out:
• What technology other businesses like yourselves are using
• What difficulties they’ve faced
• If they’ve found a particular device/software package
became outdated quickly

Plus, you must evaluate if the new technology is scalable and

aligns with your future business plans. Some questions your team
should be asking when assessing the scalability should be:

• Is the solution(s) innovating at the same pace as your plans

for growth?
• Does the solution(s) integrate with any of your existing (or
planned) technologies?
• Are the systems cloud-based? This can increase agility,
flexibility, and scalability
• Will the systems be user-friendly enough for you and
your workforce?

11
04 Ensure the tech comes with technical support

The chances are you won’t have a dedicated

in-house team to support your new systems.
So, making sure your new tech comes with quality technical support
should be a top consideration. This ensures the implementation
process runs as smooth as possible and helps your existing teams
understand more efficient ways of operating your new systems.

The best business solutions should offer

support that:
• Provides ongoing development of your business applications
• Has a 24/7 service desk that serves as a single point of contact
• Helps your business maximise its technology investments
• Includes configurable services that can be tailored to
your needs
• Offers scalable infrastructure services based on the best
brand providers

05 Don’t take shortcuts with training

You can invest in new technology, but if nobody

in your business knows how to use it effectively,
your company still won’t be working at
optimum efficiency.
Don’t take shortcuts with training your team either – without a proper
process in place, your team may not understand the reason for
change, leading them to become counterproductive.

Did you
know?

By upskilling your team, you’ll not only

make sure your workforce knows
how to use the new tech, but also
maintain their buy-in for any future
technological change.

12
Introducing business
value: It’s about more
than technology

Value creation is a crucial brick to building a profitable and sustainable food business.
It’s what sets you apart from the competition, improves your customer retention, and
brings unique meaning to your brand.

Without it, your long-term future and bottom line will be threatened.

So, if my bottom line is under threat without

value creation, does that mean it’s just about
profitability?
To put it simply – no. Of course, things like improving cost efficiency will
likely be important to you, but you should also consider non-financial
factors17 such as:

• Optimising your processes

Where can you introduce technology to ease the workloads of
your employees?

• Increasing employee morale

Have you got an effective feedback loop where your employees can
understand how their actions are directly impacting the success of
your business?

• 
Boosting customer satisfaction
How can you adapt your strategies to better meet their
changing needs?

How can I create value in the

food industry?
To make your digital transformation efforts a
success, you need to work on the overall picture of
business transformation. AKA – developing the right
mindset and culture where your new technologies
can thrive.

Let’s look at some ways you can do that.

13
How can I create value
in the food industry?

Gain approval from your Align people and mindsets by

key stakeholders ensuring your messaging is ‘on target’

Change can seem scary to your people as it To accompany your vision for change, you need to
normally means altering the way they’ve been used have the support of your leaders as they usually set
to working for a long time. the vision, messaging, goals and path.
By engaging all your stakeholders affected by the change – from your Once they’re bought into the vision, they can help promote your
directors down to the teams working within your production lines – ideas and inspire the wider organisation to stay onboard.
you can help them see the value of the transition.
Keep these tips in mind when communicating the
change to your employees:
Top tip • Use second person pronouns
‘You’ and ‘your’ ensures you’re talking directly to your employees
and taking their point of view, rather than the company’s
For change management to be effective, you’ll
need to address towards your stakeholders: • 
Be clear on what you want your employees to do
• What the change is about Think back to the three areas your ‘what’s in it for me’ question
• How it’ll impact them should answer. Your teams will most likely only be interested in
the ‘what’ and the ‘how’ of digital transformation, rather than
• What they’ll have to do to facilitate the change
the ‘why’

• 
Avoid jargons or acronyms
Make it as easy as possible for your employees to understand
Don’t forget about your suppliers either – they’ll have their own
transformation challenges, so spend time understanding each • 
Keep it relatable
other’s needs. You might be able to create them some savings which By including relevant examples to each of your points, you can
help you gain more efficiencies and will ultimately make you a better make it easier for your people to understand your reasons for
company to work with. change and see it’s a decision worth pursuing

In a recent podcast episode, Natures

Way Foods sat down with us to talk
about lessons learnt from past ERP
projects. Stewart Wilmot, Head of IT
at Natures Way Foods, discussed
how prioritising change management
was key in making their latest
implementation a success.

Listen to the episode

14
What are the next
steps for your
food business?
We hope this guide has made you more aware of the trends and challenges the food industry faces
now and what’ll continue for years to come.

From ongoing supply chain disruptions to reacting to consumer trends effectively, the only way that you can
do this is by innovating your current processes.

The right technology and expertise behind the project ensures that your business stays resilient, adaptable,
and prepared for the most unexpected changes in the industry. But how do you find a solution that’s right
for your business? Columbus has been helping food businesses like yours for over 30 years, guiding them
through the entire transformation journey from start to finish.

Click the button below to learn more.

Explore how you can transform

your food business
Reference list

Click & spend: 90% of british online grocery shoppers

plan to continue online grocery shopping after peak
covid-19 passes. mintel.com

UK subscription service statistics. finder.com

Discover the aaa sustainable quality™ program.

sustainability.nespresso.com

Morrisons to scrap ‘use by’ dates on milk to reduce

food waste. The Independent

Our Perfectly Imperfect range. tescoplc.com

Campaign reports - Creating the ‘Veganuary Effect’.

veganuary.com

Four out of five UK consumers adopt more

sustainable lifestyle choices during COVID-19
pandemic. deloitte.com

Food & Drink Report 2021-22. waitrose.com

Annual Report. Whole Foods Co•op

From fresh alt milk to pea and coconut cheesecake: What is the UK’s ‘next big
thing’ in plant-based? foodnavigator.com

Amid a Growing Appetite for Plant-Based Foods, Is Your Brand Staying

Current? franchisewire.com

Global Functional Food Ingredients Market Will Reach USD.

globenewswire.com

Food & Drink Report 2021-22. waitrose.com

Number of Instagram users in the United Kingdom (UK) from September

2018 to February 2022. www.statista.com

4 benefits of automating a manual process in your business.

columbusglobal.com

How Kellogg’s, Nike, and HP handled 2020 supply chain disruptions.

fm-magazine.com

COLUMBUSCAST: Creating an effective digital transformation plan.

columbusglobal.com

16