FOOD AND THE FUTURE: Digital Transformation in the Food Industry
A look at how trends in digital transformation are enhancing the way we consume
By Diane Dominique Ting
Change is constant, and that has perhaps never been truer than today. The pandemic has turned the entire food industry upside down as they were forced to operate differently to adapt to the changes brought by COVID-19. While stories of contactless purchases and sanitizing protocols are plenty, the real changes in the food industry might be more substantial than that. Although there has always been an obvious appetite in incorporating technologies to companies, the pandemic has undoubtedly accelerated digital transformations in the food industry by allowing it to be open to new concepts and changed behaviors. In most cases, the pandemic accelerated the popularity of pre-existing trends.
The food and beverage market is expected to register a compound annual growth rate (CAGR) of over 65.3% during the period of 2019-2024. Figure 1 shows that the Americans and parts of Europe are expected to be a significant part of this explosion towards Artificial Intelligence (Al).
As more consumers demand greater access and information on the food they consume, food manufacturers must find Innovative ways to provide solutions. Today's digital Innovation is promoting efficiency at multiple points along the food chain. Digital technology has driven change on multiple fronts at accelerated rates by collecting, using, and analyzing massive amounts of data on practically every aspect of the food system. Fortunately, there are multiple ways on how the food industry can make the most out of digital transformations.
Data and Devices
Within the increasingly competitive technology landscape, data is the most essential commodity. Data has been so valuable that when managed and analyzed properly, it can provide correct insights that businesses can use to innovate and grow. Today, higher-quality data can now be captured quicker and in greater volumes due to the Internet of Things (loT).
IoT is defined as a network of devices that gather and convey data using the Internet. According to a report by Report Liner, the loT and traceability for the food and beverage. manufacturing market was valued at 4.08 billion USD in market value in 2017 and is expected to reach 8.43 billion USD by 2025, growing at a CAGR of 9.5%, loT adds a layer of technology to food manufacturers to ensure better food safety by being able to oversee the entire food manufacturing process. For example, loT devices allow the management of entire operational and quality control procedures such as the temperature of processed items, the pressure levels of items, and even the application of labels to products.
In fact, loT-enabled technologies have proven to be more beneficial today than ever. Employees with wearables are now able to monitor their own health and share verified data with their companies through biometric identification that can pick up indicators of illnesses such as high temperature.
In addition, IoT-enabled wearable devices such as smart watches, smart gloves, and smart glasses with augmented reality can be used in food processing plants to improve production processes and food safety. The implementation of lot in the food industry has also considerably diminished the risk of a food illness pandemic. loT-enabled sensors prove to be the most popular since they are able to monitor food safety, indicators such as temperature, humidity, and carbon dioxide content most especially during production, storage, and transport. These sensors can significantly improve quality control measures.
With loT, the supply chain will also be able to function jointly with global and local regulations such as automated Hazard Analysis and Critical Control Points (HACCP) checklists. When HACCP checklists are used throughout manufacturing, production, and transportation processes, companies are able to receive meaningful and consistent data to help them put food safety solutions in place.