The Food Technology Trends Emerging in 2020

More than ever before technology is changing the way the food industry operates. In 2019 it served to create efficiencies, provided better products, and save consumers and businesses money. But looking forward, what food technology trends will emerge in 2020?

Online Food Delivery Market

Revenue in the online food delivery market amounted to US $107,438 million in 2019, and this will continue to increase in 2020. Restaurant delivery has grown 20% in the last five years. This market segment is rapidly developing and start-ups in this space will continue to experience growth. Deutsche Bank now estimates that the $24 billion online grocery market will surge to $120 billion by 2025.

In 2017 Amazon made a bold move by acquiring Whole Foods in a bid to take hold of the online grocery market. And 2020 will see investment from both Google and Uber as they develop their own grocery platforms, and push grocery delivery as a part of their business models. 

Order Fulfillment Automation

Another food technology trend to rise to the top in 2020 is order fulfillment automation. It’s predicted that by 2025 nearly 600,000 autonomous robots (AMR) will be used in warehouses as the means by which customer orders are completed. Amazon has again led the way in this regard, which has encouraged other food manufacturers to invest in automation technology in a bid to improve their order processing times. With increasing labour costs, for many food retailers this is an appealing solution.  

Reducing Waste

In 2020 there will be an increased emphasis placed on reducing waste across the food and beverage production line. Demand planning software will use advanced AI and machine learning tools to help improve inventory and traceability management. Food retailers can gain access to the most up-to-date, real-time data, helping them manage their demand and stock flock, and giving them the means by which to forecast and predict demand. Inventory management software will be invested in as a means to reduce waste and spoilage, and save costs.

Farm to Fork Traceability

The concept of “farm to fork” relates to the traceability of edible products as they move across the food and beverage supply chain. 2019 saw many prominent food recalls, including a huge hummus recall in the United Kingdom, sparked by a salmonella outbreak. Food recalls cost American companies an average of $10 million, and they’re also putting consumers on guard when it comes to future purchases. A recent survey by Harris Interactive found that 16% of consumers would never buy a recalled food product again. The recent food scares highlight the need for better traceability from the farm to the fork, which again points towards growth in the food traceability and demand planning software market.

Summary

With food technology evolving at a rapid pace, food and beverage companies have an unprecedented opportunity to increase their profit margins. The challenge is to harness technology to improve customer demand for your product and make your supply chain run more smoothly and transparently.

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