The food and beverage (F&B) industry is transitory and constantly evolving with so many variables to be considered. In the past five years alone, the sector has had to deal with supply chain disruption, war, a pandemic and rampant inflation.
However, there now indications that as inflation eases and supply chains regain some stability, consumers are taking a different outlook and approach in how they engage with brands in the F&B industry.
Evidence of this was seen in a recent survey from 4C Associates which recorded a 11.8% drop in cost-consciousness from UK consumers, who are increasingly prioritising product range and sustainability in purchasing decisions.
Using data from '4C Associates 2024 F&B Survey', ESM examines the top three strategies F&B brands need to attract consumers.
1. Balancing Cost Management With Product Diversification:
F&B brands need to optimise their operations as much as possible to balance competitive pricing and expanding product ranges.
Reducing production and administration costs should be a priority so as not to pass on any unnecessary price hikes to the consumer.
This can sometimes be easier said than done but utilising technology in an efficient manner can help streamline this process allowing more time to be allocated to product diversification and research.
There is no doubt that AI will play a big role in the future of this endeavour.
2. Embracing Evolving Sustainability Trends:
There is not a brand or company in the world that will say cost is not important, however, it should not be the only strategy to attract consumers.
A sizeable percentage of consumers will be willing to pay a little extra for brands whose values align with their own.
F&B brands should take a measured and balanced approach to this issue. It is possible for a brand to be profitable and environmentally conscious as well. Whole foods is a great example of this.
Localising production, cutting waste and responsible packaging are just some ways that this objective can be achieved.
3. Sustaining Brand Loyalty Through Omnichannel Efforts:
In the age of social media and influencers, F&B brands have to be more innovative and dynamic in dealing with consumers.
The good news is that brand loyalty is on the rise, with the survey finding that 72.5% of consumers are sticking to their preferred brands.
Consumers no longer just want a product, they want an 'experience'. F&B brands should utilise social media and app promotions, along with integrated online-to-offline shopping experiences to really engage with their consumers.
