Mini project report 2

On

“INDIAN FOOD INDUSTRY”

Submitted in partial fulfillment of the requirements

For the award of the degree of

Masters of business administration

Batch (2022-2024)

Submitted by: Submitted to:

Prashant Tiwari Ms. Humaira khatoon

MBA 2 SEM (Asst. Prof UIM)

Id-13220157

UNITED INSTITUTE OF MANAGEMENT

UPSIDC INDUSTRIAL AREA, NAINI, PRAYAGRAJ, U.P. 211010

1
 United institute of management

Upsidc industrial area, naini prayagraj- 211010.

Certificate
Mini project report-2, 2022-2024

This is to certify that Mr/Ms PRASHANT TIWARI, roll no….2100110700143…, id

Concept/title…..Food Industry, Issues/Challenges, Emerging Technologies.......

He/she has worked on identifying issues & challenges as well as the application of emerging
technologies in above industry, under my supervision and has completed the same in
conformance with / partial fulfillment of the provisions of AKTU, Lucknow.

The work is original and has not been submitted anywhere in any manner,

Signature............................................
Name of
Mr./Ms/Dr............................
Date…………………………………
…….............
Department of business
administration

Counter Signed:

Signature…………..
(Prof K.K. Malviya)
Principal
Date……………………

2
 Declaration

This is to certify that I have completed the mini project 2 titled “Indian Food Industry Its
Issues/Challenges and Emerging Technologies” under the guidelines of Mrs. Humaira
Khatoon in partial fulfillment the requirement for the award of degree of master of business
administration at united institute of Management, Naini, Prayagraj.

This is an original piece of work and i have not submitted earlier elsewhere.

Place: Prayagraj name: Prashant Tiwari

Date: Id no: 13220157

3
 ACKNOWLEDGEMENT

I Offer My Sincere Thanks and Humble Regard To United Institute Of Management, AKTU

University, Prayagraj for assigning this valuable project.

I Pay My Gratitude and Sincere Regards To My Principal Sir (Prof. K.K. Malviya) And HOD

Sir Dr. Rohit Kumar Vishwakarma for Giving Me This Wonderful Opportunity. I Would Like
To

Thank My Project Guide Mrs. Humaira Khatoon For Guiding Me In Making This Project. I
Am

Thankful To Him As He Been A Constant Source Of Advice, Motivation And Inspiration.

I Am Also Thankful To Him For Giving Suggestion And Encouragement Throughout The

Project Work. I Take Opportunity To Express My Gratitude And Thanks To Our Computer Lab

Staff Library Staff For Providing Me Opportunity To Utilize Their Resources For The

Completion Of The Project.

I Am Also Thankful To My Family And Friends For Constantly Motivating Me To Complete Of

The Project And Providing Me An Environment Which Enriched My Knowledge.

Prashant Tiwari

Mba 2nd sem

4
 S.NO. Topics Page no.
1 Introduction

2 Objective of the project

3 Review of literature

4 Overview of the industry

5 Issues and challenges

6 Impact of technologies to resolve issues

7 Suggestive strategies

8 Learning outcomes

9 Recommendations

10 Bibliography

5
INTRODUCTION

The food industry is a complex, global network of diverse businesses that supplies most of

the food consumed by the world's population. The term food industries covers a series of

industrial activities directed at the production, distribution, processing, conversion, preparation,

preservation, transport, certification and packaging of foodstuffs. The food industry today has

become highly diversified, with manufacturing ranging from small, traditional, family-run

activities that are highly labor-intensive, to large, capital-intensive and highly mechanized

industrial processes. Many food industries depend almost entirely on local agriculture, produce,

or fishing.

India is the second biggest food producer globally, and it has the potential to become the largest

producer of food in the whole world. The food industry in India includes milk and milk products,

plantation, alcoholic beverages, vegetables and fruits, fisheries, poultry and meat, grain

confectionary, chocolates. The food industry in India exported products worth around us$ 5.8

billion in 1998, while the total world food export stood at us$ 438 billion. This shows that

although India is one of the biggest food producers globally, it accounted for only 1.5% of the

international trade in food as in 1998. The food industry is the complex networks of farmers and

diverse businesses that together supply much of the food consumed by the world population.

Although there is no formal definition for the term, the food industry covers all aspects of food

production and sale.

6
The food industry covers diverse activities including food supply, production, harvesting,

processing, packaging, transportation, distribution, consumption, and disposal. The development

of the food industry began in the early 1900s.

Food is an essential part of our lives. The food industry is the basic and important to every

nation. It is one of the seventeen national critical sectors of us economy. It plays a crucial role in

public health, food safety, food security, social development, and nutrition. Product quality,

health, and sanitation issues are major concerns in the food industry.

Through the ministry of food processing industries (mofpi), the government endeavours to urge

more investments in the business. It has sanctioned joint ventures (jv) proposals, foreign

collaborations, industrial licenses and 100% export oriented units. The indian food processing

industry amounts to 32% of the country’s aggregate food market. It contributes approximately

8.80 and 8.39% of gross value added (gva) in manufacturing and agriculture, respectively, is13%

of india’s exports and 6% of aggregate industrial investment.

7
OBJECTIVE OF THE PROJECT

Through the medium of mini project the objective are as follows:

➢ To understand the working of the food industry and its impact on other industries.

➢ To identify the issues and challenges in the food industry which are impacting to

the working of food industry?

➢ To find out the new technologies in the food industry and its effect on resolving

the problems and challenges of the food industry.

➢ To generate income for the manufacturing company.

8
REVIEW OF LITERATURE

Food processing industry is the fifth largest industry in India in terms of production,

consumption, export and growth. Indian processed foods sector stood at USD 157 billion in 2012

and it is expected to reach USD 255 billion by 2016 with 13 percent growth rate per annum

(Indian food processing industry-opportunities and outlook 2015, 2012; bowman et. Al, 2004).

Young people who eat fast food consume more calories, fat, sugar, and sugar sweetened

beverages, and less fiber, milk, fruit and vegetables than peers who do not eat fast food.1 if

today’s youth consumed fast food occasionally, this would not be a public health crisis. But

every day, one-third of American children and adolescents eat fast food.2 fast food contributes

16-17% of adolescents’ total caloric intake.3 the fast food industry spent more than 4.2 billion

dollars in 2009 to advertise their products to all audiences.4 they are marketing to children and

teens more than ever – exposure to fast food ads on TV increased by 21% for preschoolers, 34%

for children (2-11), and 39% for teens (12-17) from 2003 to 2009. Marketing goes far beyond

television ads. The companies use websites, banner ads, and social and mobile media to reach

young people.

Abstract

Proper nutrition offers one of the most effective and least costly ways to decrease the burden of

many diseases and their associated risk factors. Processed foods/ fast foods are those which have

been altered from their natural state, either for safety reasons or for convenience. The set of

methods and techniques used to transform raw ingredients into food or to transform food into

other forms for consumption by humans is called food processing. Processed foods have many

9
benefits including improved taste, prolonged self life and availability of product throughout the

year. But some ultra processed food also imposed some detrimental health risks to consumers

like obesity, diabetes, cardiovascular diseases etc. Even some of the food additives added to food

to preserve flavor or enhance its taste are carcinogenic. So we should try to avoid ultra processed

food and should give more stress on unprocessed or minimally processed foods. Government and

health authorities should also promote the healthy eating habits by regulating the excessive use

of food preservatives/food additives.

The attainment of good nutrition depends on and encompasses the entire food supply. Plant and

animal foods and their various components are the primary vehicles that provide nourishment to

human beings. Nutrition is vital, not only in the growth and development of humans and animals

but also in the prevention and treatment of disease. Fast food is a term given to food that can be

prepared and served very quickly. While any meal with low preparation time can be considered

to be fast food typically the term refers to food sold in a restaurant or store with low quality

preparation and served to the customer in a packaged form for take-out/ take away. Tran’s fats

which are commonly found in fast food have been shown in many tests to have a negative health

effects on the body. The fast food consumption has been shown to increase calorie intake,

promote weight gain and elevate risk for diabetes. Originally, foods were grown and eaten

directly from a relatively unpolluted earth. Wild foods were sought and gathered. Cleaner

oceans, lakes and rivers fed us nutritious fish. Animals in the wild provide protein foods to

hunters and their tribes. As the human population multiplied, the world expanded, farming

progressed, trade specialties developed, and town markets shared a variety of goods among a

diversity of people. Techniques for food preparation and preservation, such as pickling, salting,

and smoking, were developed to deal with the new problems of storage, waste, and food-borne

10
illnesses. With advanced technology, our modern food industry’s reliance on processing and

additives continues to increase (haas, 2004). So in this way processed foods come into existence.

They have been altered from their natural state, either for safety reasons or for convenience. The

set of methods and techniques used to transform raw ingredients into food or to transform food

into other forms for consumption by humans is called food processing. Food processing typically

takes clean, harvested crops or butchered animal products and uses these to produce attractive,

marketable and often long shelf-life food products. Similar processes are used to produce animal

feed. The methods 8 amity research journals of tourism, aviation and hospitality vol. 01, issue

02, july-dec 2016 used for processing foods include canning, freezing, refrigeration, dehydration

and aseptic processing etc. India is world’s second largest producer of food next to china and has

potential of being the biggest with its food and agricultural sector. The food processing industry

is one of the largest industries in India and it is ranked 5th in term of production, consumption,

export and expected growth. The food industry is on a high as Indians continue to have a feast

and large disposable incomes (harchekar, 2008).

In present scenario, food processing is used as a major way to enhance human nutrition. It

improves global food security by enhancing the nutritional composition of foods and its

availability to expanding population of world. On industrial scale, environment friendly advance

techniques with minimal loss of bioactivities are highly desirable for the food processing in

foods industries. Human health will be benefitted by processed food products that meet food

safety regulations. The present need of time is to meet the challenge of food security and

availability of food that is not only for feeding purpose but also rich in nutrition, because it is

associated with well development of human resources in any country and it directly affects their

contributions to the world (satyanarayana et al., 2012). Food processing increases seasonal

11
availability of many foods, often improve the taste of food significantly, enables transportation

of delicate perishable foods across long distances and makes many kinds of foods safe to eat by

de-activating spoilage and pathogenic micro-organisms. Processed foods are usually less

susceptible to early spoilage than fresh foods there by reducing the incidence of food borne

disease. Processed food freed people from the large amount of time involved in preparing and

cooking "natural" unprocessed foods. Modern food processing also improves the quality of life

for people with allergies, diabetics, and other people who cannot consume some common raw

food elements (laudan, 2010).

12
INDUSTRY OVERVIEW

India is the world’s second–largest producer of fruits and vegetables. India enjoys a similar

stature in the production of marine products, and meat and poultry. India is the single largest

producer of milk in the world, with the production estimated at 137.7 mt.

India has the largest livestock population across the globe which is equal to 512 million,

including 119 million (in-milk and dry) animals, 135 million goats and 65 million sheep. The

segment contributes about 25 per cent to the country’s farm gross domestic product (GDP).

To reduce post-harvest losses of fruits and vegetables, government plans to set up 500 cold chain

projects in the country. Moreover, 42 sanctioned mega food parks in the country are likely to

become operational by 2018

As on November 2016, food safety and standards authority of India as launched a major scheme

worth us$ 72 million to address the urgent need to upgrade food testing laboratories in India.

Given the above context, it is easy to understand that the food processing industry is one of the

largest industries in India. The country’s food processing industry ranks fifth in terms of

production, consumption and exports.

Strategic geographic location and proximity to food importing nations benefit India in terms of

exporting processed foods. Main export destinations for food products have been the Middle East

and Southeast Asia.

13
India has the largest livestock population across the globe which is equal to 512 million,

including 119 million mulch (in-milk and dry) animals, 135 million goats and 65 million sheep.

The segment contributes about 25 per cent to the country's farm gross domestic product.

Food industry comprises companies that operate by manufacturing, producing, packaging,

retailing and distribution of food products in various forms. The food industry has evolved

greatly over the past two decades thanks to technological advances, keeping pace with growing

demand for convenience foods. This sector calls for greater demand for packaging to ensure safe,

fresh, easy-to-use products. Demand for better quality foods and in greater quantity means the

food industry drives several other industries such as convenience stores, supermarkets,

hypermarkets and gasoline outlets with grocery sections. Supermarkets and hypermarkets

represent the biggest market share in terms of sales.

Food retail is dominated by outfits in the growing their market share in emerging nations and

small retailers accounting for an increasing share of food sales. The 15 leading global

supermarket companies represent around 30% of global supermarket sales. The industry is not

concentrated, with the 50 leading food manufacturers representing less than 20% of the global

packaged food sales. Food manufacturers are developing specialized product lines to remain

competitive and direct growth rather than the traditional approach of diversifying product

portfolios. Regional markets and product lines may be concentrated, though the global food

industry is not. Areas exhibiting market concentration include sales of branded goods such as

baby food and breakfast cereal. Natural highs, convenience, foraged ingredients, flavor-full

benefits and next generation proteins are the five key foods and drink trends to watch in the near

future.

14
ISSUES AND CHALLENGES

The food industry faces several challenges. Various areas of the industry have been criticized

and the food industry works hard to discredit its critics. Challenges associated with the current

food system such as climate change, pollution, manure disposal, soil and water damage,

deforestation, environmental degradation, and strain on natural resources are forcing every

country to create a more sustainable food system. The food industry needs to deal with new

legislation and increased regulation on environmental issues. The excessive use of fertilizers,

pesticides, and food additives may adversely affect the environment and human health.

Compliance with regulatory standards is an issue for many food manufacturers. As public shifts

toward a greener planet the food industry should implement green policies. Bringing to market

new products in a timely manner is difficult for many food companies. The process of creating

new, relevant products and moving them through r&d, testing, and marketing to retail takes time.

Consumers' tastes are fickle and targeting them is increasingly more crucial. A big challenge

facing the food is transparency. Consumers are reading the back of packages now more ever.

They want to know what ingredients are going into their products. Their interest for transparency

continues to hold food companies accountable. They are becoming more educated on the benefits

of healthier choices.

Enterprises in the food industry are operating in a highly competitive, glob al environment and

they must constantly engage in product development. They are in a state of change driven by

cost of operations. This change is heading change driven by cost of operations. This change is

heading for automation solutions that can enable the industry to become more lean and agile.

15
The food industry is widely known as having strong economic and political power. It is creative

in both its technological innovation and desire to satisfy the requirements of consumers, health

professionals, and its critics. It is striving to economically and efficiently produce high quality

products. It has also begun to take responsibility for healthy eating issues.

The food industry has undergone a series of changes in the last decade due to the rapidly

changing behaviors of consumers, technological advancements, and stringent regulations. Such

factors have plagued the industry with a series of obstacles. Being a consumer-driven industry,

this industry is facing serious challenges with the change in the perspective of the consumers as

they have become more focused on maintaining healthy lifestyles.

Today, food products are judged based on not only the quality but also the nutritional value. As a

result, food manufacturers need to bring about significant changes in their existing

manufacturing processes. In this article, our food and beverage industry experts have highlighted

some of the major challenges that companies in this industry are going to face in 2021.

ENFORCEMENT OF PLASTIC BAN

Food and beverage companies and manufacturers are now striving towards making the food

manufacturing process highly conducive to the environment by adopting numerous recycling

practices. In 2021, the need for deploying green business practices right from production to

Packaging and supply chain management will become very important to tackle the current issues

In the food and beverage industry.

16
STRINGENT REGULATORY LANDSCAPE

Most of the food and beverage companies adhere to the regulatory norms perfunctorily. But the

consistent changes with respect to surplus production, waste disposal, quality of food, raw

material, and documentation are emerging out to be major hurdles for food and beverage

manufacturers. To deal with such challenges, companies in the food and beverage industry need

to improve their business operations right from manufacturing to distribution processes.

THE PERVASIVE PRESENCE OF E-COMMERCE

Another major challenge that the food and beverage industry is facing in 2021 is the challenge of

improving online visibility. Today consumers have become more tech-savvy and digitally

informed and this has raised their expectations. Unlike e-commerce companies, food and

beverage companies are still lagging when it comes to analyzing their online presence. With the

emergence of the newer market, changing nature of consumer spending, and advancing

technology, it is high time for companies in the food and beverage industry to focus on

marketing products online. This can also help them serve their customers better and stay ahead in

the competition.

RISE OF VEGANISM

With the increasing number of consumers turning vegan, the demand for meat and other products

has witnessed a significant decline. This has posed a serious challenge to the food and beverage

industry. Food and beverage manufacturers today need to maintain their reputation with regard to

17
ethical treatment of animal concerns. As a result, companies have come up with meat-free

alternatives to keep the retail and supply chains running.

LABOUR SHORTAGE

Grocery stores have seen an increase in demand lately, and the food industry is dealing with labor

shortages across the board. This makes it kind of an anomaly when considering that many other

industries are downsizing at the moment.

More demand means more employees, and more employees mean higher carrying and overhead

costs. Companies also have to pay more to recruit, onboard, and train employees. They will have to

work harder to retain them with better pay and packages as well, which further increases costs.

Having more employees also increases the risk of contamination. Entire shop floors will have to be

remained to facilitate distancing. Some companies may have to institute new rules for lunch breaks to

keep contact to a minimum. Ventilation and filtration will also need to become a priority and

protocols will need to be implemented if an employee contracts covid-19.

SUPPLY CHAIN PRESSURES

The fragility of the global and local supply chain has been exposed over the last year, and many

Companies have realized how poorly prepared they were. Shortages or irregular supply puts a lot of

stress on manufacturers and retailers who now have to better manage their inventory and diversify

their supply chain. More manufacturers also understand the importance of tracking in the shipping

process. Human error can lead to even more stress on the supply chain, delays, and loss of product.

This is why more are implementing barcode solutions for enhanced traceability.

18
For those in the sector who would like to learn more about bar-coding and how it could improve the

manufacturing process at every stage, we suggest you give diagraph a look. Diagraph has an

extensive selection of product, case, and pallet coding solutions, as well as software solutions for

management.

AVAILABILITY OF RAW MATERIALS

Agricultural produce is an important factor for sustaining food processing activities. Due to

seasonal availability of certain crops, the sector faces delays in production resulting in low

supply. For oil production, the majority of oilseed producers are small and marginal farmers with

poor access to resource bases such as fertilizers, manure, etc. Hence, oilseeds grown by such

farmers have low yield. Rabi crops like wheat, barley and mustard are sown around mid-

November and harvested in April or may. These food grains are dependent on forces of nature,

which are rather unpredictable. Seasonal scarcity and high cost of raw materials constitutes one

of the major constraints affecting the growth of small-scale food processing enterprises. This

scenario results in scarcity and higher pricing of raw materials.

STORAGE CONSTRAINTS

Many of these shortage or scarcity issues can be solved by following proper storage norms for

raw materials. However, this is a major challenge faced by the Indian small-scale food

processing industry. The absence and inadequacy of infrastructure facilities to store raw

materials lowers the quality and availability of the end product.

There are two ways for proper storage – warehousing and cold storage.

19
In warehouses, problems arise due to scarcity of space and how commodities are optimally

stored in that space. Product damages are another problem faced in warehouse; few damages are

inevitable but can be reduced with a rack safety netting and avoiding overload of shelves.

Cold storage for frozen food is a massive sub-industry in and of itself. With ever-evolving food

trends there are growing varieties of ready-to-eat food, beverages, processed frozen fruit and

vegetable products, marine and meat products and so on – many of these items require

specialized storage environments.

The lack of availability of these types of facilities poses a major constraint for the food

processing sector.

TRANSPORTATION ISSUES

Perishable food items must be shipped with proper packaging to avoid breakages and damages

during transportation. Also, timely delivery is important to avoid spoilage – certain food items do

not last long even if stored in climate-controlled facilities.

TECHNOLOGICAL EQUIPMENT

In the Indian food processing sector, we stick to traditional production processes where the

quality of agricultural and food products is being inspected by human evaluators. This manual

inspection is time-consuming, labor intensive and prone to human error. To lessen the impact of

these issues, computerized inspection of these products must be implemented.

20
HIGH COMPETITION

This industry is highly competitive with many players in the organized, as well as, unorganized

sectors. A few of the top indian food processors include nestle india limited, britannia industries

limited, amul india, parle agro private limited, haldiram’s food international limited and itc

limited. In order to survive in a competitive environment, the food processing industry can

definitely develop through marketing channels, improving food quality standards and strengthen

manpower to face global challenges.

In spite of the problems faced, food‐processing technology in India has continued to make steady

progress towards modernization. The sector will continue to witness increases in the number of

food processing units. Some key drivers include the entry of international companies, availability

of cheap work force, rising demand of Indian products in international markets, and demand for

processed food.

INCREASING DEMAND FOR MEAT-ALTERNATIVES

A rising percentage of the population is becoming plant-forward, reducing their meat

consumption. We believe this trend will continue with a diet. This needs to be met with a

corresponding increase in vegetarian and vegan products. This has led to giants in the food and

beverage industry such as sainsbury, nestle, and aldi launching meat alternatives at retail outlets.

The main checkpoints are taste, texture, and nutrition. However, the challenge has been the time

frame. With evolving expectations and demand, consumers and retailers alike are looking for

new options.

21
LACK OF TRANSPARENCY

With growing ethical concerns, consumers want to be associated with brands that maintain

transparency and accountability. International and fragmented supply chains often cause gaps in

traceability. Transparency covers aspects ranging from the source of fresh produce, the kind of

farms, the employees, and their working conditions to the type of processing, packaging, and

more.

While large brands in the food and beverage industry can cover the gaps, tier two and three

brands will have a hard time. This leads to a lack of transparency across the global food supply

chain.

22
Impact Of Technologies/Application To Resolve Issues

The impacts of technology on the food industry have gone extensive. The food industry has

developed tremendously in the 21st century and it has now become more complex to maintain

the long chain of supply and satisfy the human love for food.

It requires innovation to maintain the processes in the food industry because food is one of the

most important and the most loved obligations of human life.

It is important in maintaining a healthy life and normal growth. Due to the love of humans

towards food, this sector is going to exceed $3.1 trillion by 2022.

Modern food industry uses a wide variety of sophisticated technologies. Agricultural machinery

(such as tractor) has practically eliminated human labor in many areas of production. Robots

have the potential to transform food processing, food handling, food packaging, and food

serving. They have incredibly increased the productivity as compared to the manual production.

Block chain can be used to see where delays and waste occur in the supply chain for food

products. Microwave heating or infra-red energy from a hot surface is widely used in food

preparation. Evaporators are used in a number of food processing industries. Metabolic

engineering has been used for the production of carotenoids by different yeast cells. Ultrasound

is another technique which offers the potential of non-invasive, hygienic measurement for the

food industry. Nanotechnology has been used in food processing, food packaging, and food

preservation. It has the potential to revolutionize agriculture and food systems. Ozone has been

used to disinfect water for various purposes such as drinking and swimming pools. Enzymes, the

natural catalysts for chemical reactions, are produced by all living cells. They are used in food

processing and the food industry, Computer simulation is used in R&D in the food industry. It

plays a key role in solving complex operational problems. For example, through the use of

23
simulation, production and service aspects of Pizza Hut restaurant and delivery unit operations

can be examined. Computer networks (such as the Internet) provide the support infrastructure to

allow global movement of food. The food industry is getting into the e-commerce game slowly.

As consumers are shifting to a preference for online shopping, the food industry are finding ways

to adopt e-commerce as part of their marketing strategies.

Modern food production is defined by sophisticated technologies. These include many

areas. Agricultural machinery, originally led by the tractor, has practically eliminated human

labor in many areas of production. Biotechnology is driving much change, in areas as diverse

as agrochemicals, plant breeding and food processing. Many other types of technology are also

involved, to the point where it is hard to find an area that does not have a direct impact on the

food industry. As in other fields, computer technology is also a central force.

Technology is providing convenience and aid in every aspect of life. It is providing human

beings with convenience related to food.

Technology is playing a role in all aspects including food production, processing, packaging,

safety, etc.

All those technological processes that help us in providing food to our belly can be incorporated

into the positive impacts.

Let’s discuss those interesting benefits of technology in bringing food.

24
1. Alternative Proteins

Consumers are shifting towards alternative protein sources due to both health and environmental

concerns, making it one of the most prominent food technology trends. Cultured meat, lab-grown

food, plant-based nutrition, edible insects, and mycoprotein are the primary alternative protein

sources. Not only are they nutrient-rich, but they also minimize resource use from farm to fork,

unlike protein from livestock. They reduce the overall costs as alternative protein sources

demand only marginal dietary requirements and health monitoring. Advancements in 3D

printing, fermentation, and molecular biology enable startups to develop sustainable alternative

protein production solutions. This aids food companies to offset the ethical concerns and carbon

footprint of industrial meat production.

2. Nutraceuticals

There is an increasing concern about the impact of food habits on health and a growing need for

essential nutrients for a healthy lifestyle. With the COVID-19 pandemic, consumers are focusing

more on eating healthy, making nutraceuticals a top trend in the food industry. This is a critical

element in driving the demand for nutraceuticals. These include nutritional supplements,

functional foods, medicinal food, and gut micro biomes enhancement foods such as prebiotics,

probiotics, and postbiotics. Scientific research on nutraceuticals suggests that various

25
nutraceuticals provide health benefits against disorders related to oxidative stress such as allergy,

Alzheimer’s, diabetes, and immune diseases.

3. E-Commerce

E-Commerce has been in the spotlight in the food & beverages industry for a while now. But, the

COVID-19 situation further pushed innovations in food supply chains. Food brands utilize

digital platforms to offer on-demand online delivery services and reach customers through direct-

to-customer (D2C) distribution models. Also, the safety concerns during the pandemic are

promoting the growth of ghost kitchens or cloud kitchens that offer only food takeout and

deliveries. Along with D2C, brands are focusing on omnichannel distribution to improve

customer experience and improve sales. Moreover, food & beverage E-Commerce allows food

manufacturers to reach their customers better as well as ensure availability.

4. Food Safety & Transparency

As customers now are more thoughtful about the quality of food products they buy, food safety

is a significant concern. With smart labels and standalone food grading devices available to

customers, it is easy for them to make knowledgeable decisions before choosing food items.

Also, advancements in block chain and real-time food monitoring using Internet of Things (IoT)

devices enable food brands to provide end-to-end traceability. Startups are furthering food safety

26
and transparency by developing cost-effective and scalable monitoring solutions. This increases

the trust between food producers and consumers, positively impacting brand credibility and

sales.

5. Personalized Nutrition

The rise in nutrition awareness among consumers is driving the demand nutrition personalized

solutions. These are not only limited to nutrigenomics-based diets but also include personal

preferences such as sugar- and gluten-free diet, vegan diet, and clean label food products.

Innovations in 3D printing and the adoption of robotics in food assembly lines allow food

manufacturers to provide nutrition personalization at scale. Also, at-home blood- and urine-based

testing kits enable consumers to determine food habits that best suit their genetic profiles.

Furthermore, various tracking devices allow users to track diet and health conditions to

streamline their diet. This allows consumers to dictate their dietary preferences, thereby

improving customer convenience and sales.

6. Restaurant Digitization

Restaurant digitization provides enhanced customer experience and enables smooth operation

management. Additionally, it allows restaurant brands to gather data points at each stage,

enabling data-driven decision-making throughout operations. Moreover, the disruption of the

27
food & beverage industry due to the COVID-19 is causing a shift in restaurants adopting digital

management systems across the supply chain. To reduce direct human-to-human contact,

restaurants integrate digital menus, self-service kiosks, and cashless payment methods.

Furthermore, chat bots and voice bots are up-and-coming tools for assisting customers with food

orders and other restaurant-related queries. With customer preference and behavior data, AI-

enabled tools offer food recommendations to the customers and develop new recipes.

7. Digital Food Management

Big data analytics and AI, along with real-time monitoring, enable digital food management

from farm to fork. Startups develop food management solutions to optimize manufacturing

processes and supply chain operations. Moreover, restaurant digitization enables customer

behavior analysis and demand forecasting based on consumer preferences. Altogether, these

solutions allow food producers to better understand market requirements and predict disruptions,

thereby reducing losses and managing surplus food. For example, quantum computing enables

startups to analyze critical disruptions, such as pandemics, and simulate market fluctuations

efficiently. Additionally, customer and market intelligence allows brands to optimize their

marketing strategies and effectively reach the relevant audience, boosting sales.

28
8. Food Waste Reduction

A large fraction of the food produced globally is lost or wasted. Therefore, curbing food wastage

is critical to addressing food insecurity. Food entrepreneurs and large corporations now focus on

reducing food wastage to minimize environmental footprint and save costs. Food monitoring

solutions allow food producers, restaurants, and smart cities to reduce their food waste. Also,

there is a paradigm shift from food waste reduction to zero waste approaches in food

manufacturing. Food brands are up cycling and reusing food waste to generate value and

increase their reach to consumers interested in sustainability. For example, 3D food printing

solutions that use food waste to print edible food products curb food waste at restaurants and

other food outlets.

9. Robotics

The food industry incorporates into the entire value chain to advance efficiency, consistency, and

scale during food production. Food brands also deploy hospitality robots at hotels and restaurants

to improve customer convenience and safety. Robotic chefs and food processing robots further

fuel food robotics as a prominent food technology trend. Autonomous drones and vehicles are

emerging to be efficient substitutes for manual delivery services while saving overall costs.

Drones and other food handling robots at warehouses and grocery stores enable fast and cost-

29
effective food tagging and monitoring. In effect, the robotics bloom in the food industry is

expediting food production revenue with enhanced speed and precise food quality control.

10. 3D Food Printers

3D food printers enable personalized diet and alternative protein-based meals, as well as precise

and reproducible nutrition. Even though material extrusion is the most common food printing

method, startups are using laser and inkjet food printing, as well as bioprinting methods, to

develop food products. These approaches focus on increasing the quality and precision of 3D-

printed food products. Since food brands need products with exact specifications and quality

reproducibility, more research is ongoing in 3D food printing for large-scale food production.

Such solutions reduce the complexity and costs of food production. Also, 3D printing allows

food brands to offer personalized food products at scale without additional tooling and

operational costs.

Improved food storage

Impacts of Technology on the Food Industry are that technology has enabled the food industry to

safely store food for longer periods.

Companies have developed large storage facilities for food products. The storage area has the

prescribed cooling or warm environment with the best nitrogen and oxygen levels.

30
Storage facilities are installed on transport vehicles to safely store and transfer food commodities

with the required levels of chemicals, moisture, and air.

An oxygen absorber is used in storage facilities to prevent rotting and insect attacks on fruits,

vegetables as well as meat.

Food packaging:

One of the greatest impacts of technology on foods is food packaging. It is the most important

and basic component of the food industry. The technology of food packaging has revolutionized

the food industry.

Packaging protects food from the physical contamination of germs and ensures safe delivery to

consumers.

The packaging is made according to the food items and their characteristics. Every food item has

its type of packaging.

Dairy products are delivered in tetra packaging keeping in mind the delivery and shelf life while

for beverages tins and glasses are used with a specific amount of O, CO2, and nitrogen to

protect, increase shelf life and ensure quality.

31
LEARNING OUTCOME

➢ How to manage the human resources within a food services organization or department.

➢ Communicate appropriately with clients, staff and management.

➢ Develop nutritional menus for food service production.

➢ Where/how to manage food service production.

➢ Manage food services budgets.

➢ Provide customer service to clients within the food service industry.

32
RECOMMENDATIONS

1. Design your facility layout for future growth

If you’re building a new plant, design the layout to accommodate future expansion. Ensure you

don’t just meet today’s demands, but that you also create space for projected manufacturing

needs five to ten years down the road. Processing lines don’t get shorter or slower; they get

longer and faster.

Don’t design a floor plan just big enough for today’s equipment; set yourself up for success by

factoring in that extra breathing room. An experienced design firm that specializes in the food

and beverage industry, like Stellar, can help you analyze your current processing, strategically

plan for future growth and design a facility that can meet current and future needs.

2. Plan for food-safe facility expansions

Any time you expand or renovate a food plant, you heighten the risk for exposure to

contaminants. Cutting into walls creates dust and workers coming to your facility can introduce

cross-contamination that threatens food safety. Especially with a RTE facility, you want to

avoid penetrating the building envelope, if possible, to reduce this risk during construction. You

can proactively avoid these issues by designing a building to more easily accommodate future

expansions.

For example, consider selecting a site with enough space to build an additional facility next

door to your existing one, if that will be needed. Or consider locating storage tanks or other

infrastructure so they’re not immediately adjacent to an exterior wall. Plan logistically for future

add-ons, even if that means building an extra hallway now.

33
This so-called “end-state design” process is a win-win: It reduces the risk of contamination

when you decide to renovate/expand and you minimize downtime when the addition is under

construction.

3. Consider geographic expansion

Growing with the market isn’t always about leaving room for expansion at a particular facility.

Depending on the segment and company, you may want to prioritize looking at the geographic

market to see where future plants are needed. If you have substantial operations on the east

coast, but demand is growing in the west, it may make more sense to build a facility there rather

than build upon existing operations. It is possible to build a plant that is too large and not

sustainable for a company’s supply chain.

4. Prepare for automation and robotics

As RTE food manufacturers prepare for the future, they must account for the growth

of automation and robotics. Traditionally, RTE plants have had more people working in them

than highly mechanized beverage facilities, for example, but advancements in technology and

equipment have led to a growth in robotics in the RTE space as well.

You must consider what you can afford and where it makes sense to incorporate automation

into your process. It’s not just about efficiency, either. After all, people are the biggest culprits

when it comes to bringing bacteria and contaminants onto the plant floor.

5. Put quality and safety first

Of course, these are just a few considerations for how you can grow your RTE manufacturing

business sustainability and successfully when it comes to your brick-and-mortar processing. The

34
best advice is to partner with a qualified, experienced engineering firm who understands all the

variables to building a successful facility: architecture, building design, process engineering,

refrigeration, construction and beyond.

Food is an essential part of our lives. The food industry is the basic and important

To every nation. It is one of the seventeen national critical sectors of us economy.

It plays a crucial role in public health, food safety, food security, social

Development, and nutrition. Product quality, health, and sanitation issues are

Major concerns in the food industry. Figure 1 shows the double pyramid which

Suggests a virtuous model to promote sustainable food choices for health and the

Modern international journal of trend in scientific research and development (ijtsrd)

@ www..com eissn: 2456-6470

@ ijtsrd | unique paper id - ijtsrd23638 | volume – 3 | issue – 4 | may-jun

2019 page: 129

Can influence food behaviors by moderating socio

Cultural elements of the food environment

Food industry technologies

Modern food industry uses a wide variety of sophisticated

Technologies. Agricultural machinery (such as tractor) has

Practically eliminated human labor in many areas of

Production. Robots have the potential to transform food

Processing, food handling, food packaging, and food serving.

35
They have incredibly increased the productivity as

Compared

Food is an essential part of our lives. The food industry is the basic and important

To every nation. It is one of the seventeen national critical sectors of us economy.

It plays a crucial role in public health, food safety, food security, social

Development, and nutrition. Product quality, health, and sanitation issues are

Major concerns in the food industry. Figure 1 shows the double pyramid which

Suggests a virtuous model to promote sustainable food choices for health and the

Food is an essential part of our lives. The food industry is the basic and important

To every nation. It is one of the seventeen national critical sectors of us economy.

It plays a crucial role in public health, food safety, food security, social

Development, and nutrition. Product quality, health, and sanitation issues are

Major concerns in the food industry. Figure 1 shows the double pyramid which

Suggests a virtuous model to promote sustainable food choices for health and the

Food is an essential part of our lives. The food industry is the basic and important

To every nation. It is one of the seventeen national critical sectors of us economy.

It plays a crucial role in public health, food safety, food security, social

Development, and nutrition. Product quality, health, and sanitation issues are

Major concerns in the food industry. Figure 1 shows the double pyramid which

Suggests a virtuous model to promote sustainable food choices for health and the

36
37
BIBLIOGRAPHY

❖ https://www.rentokil-pestcontrolindia.com/food-processing/10-ways-to-ensure-food-

safety/

❖ https://www.foodmanufacturing.com/home/blog/13247949/readytoeat-food-

manufacturing-5-recommendations-for-future-growth

❖ https://www.edlong.com/top-7-food-industry-trends-for-2021/

❖ https://www.researchgate.net/publication/334123694_Food_Industry_An_Introduction

❖ https://www.ibef.org/industry/indian-food-industry.aspx

❖ https://www.ciiblog.in/recommendations-to-food-processing-industry

38