Prior to the COVID19 outbreak, the Food and Beverage Industry had all tides in its favor. The estimated annual growth rate (CAGR 2020-24) was 10.6%, resulting in a market volume of USD 319,714m by 2024. The market penetration was expected to reach from 10% to 25% by 2024.
However, the Corona pandemic has massively impacted the Food & Beverage (F&B) industry. The international food exhibition and agriculture machinery expo are massively disturbed due to the pandemic.
Corporate giants of the industry, such as McDonald's, KFC, Starbucks, Subway, Coca Cola are globally affected by the crisis, especially in China, the US, Italy, and South Korea.
The offline food chains, cafes, restaurants, and other seating areas, which are parts of the F&B industry, are totally shut down in some regions.
The industry is globally impacted whereas Asia-Pacific and Europe are badly suffering. Moreover, not only production but the supply chains have been disrupted too. Many countries are facing delays and interruptions in export and import.
Recently, the WEF (World Economic Forum) alerted about the global food price risk and advised measures to prevent the food crisis. Many countries have already made restrictions on the export-import policies due to the pandemic.
The UN's Food and Agricultural Organization (FAO) declared tumbling food commodity prices for the third consecutive month as the demand gradually decreased due to logistical issues during the novel COVID-19. The price of sugar, vegetable oil, meat, and dairy plummeted in comparison with the previous month. Countries like South Africa and Mexico banned the sale of alcohol in their regions. Whereas in India, the government is imposing up to 70% tax on retail alcohol sales, to gather fewer people outside the retail shops.
Amidst this turbulent weather, there are some pleasant waves of hope and good news.
The demand for online food delivery services has increased. Its market size is expected to reach USD 200 billion by 2025.
Plus, the packaged food and beverage industry is in demand (including dairy products).
In the US, President Donald Trump has ordered the meat processing plants to stay open to prevent the shortage of meat in the country.
According to 3rd Market Reports and Analytics: Artificial Intelligence (AI) in the Food and Beverage Market is growing at a High CAGR during the forecast period 2020-2026.
The increasing interest of the individuals in this industry is the major reason for the expansion of this market.
Smartphone users are the primary online buyers and will be the leading future target audience.
SPINS retail sales data released on March 3, 2020, says the grocery sales of plant-based foods that directly replace animal products have grown 29% in the past two years to USD 5 billion.
The industry needs to learn from these tough times and make provisions for any future uncertainty. Everyone is expecting a normal future ahead.