Food Production in Review

Industry Highlights

Over the past few years, the North American food manufacturing industry has been in a steady upswing. In both Canada and the United States, food manufacturing has been one of the major leading economic industries, with development happening at many levels.

The construction of new plants and the expansion of existing facilities have been in the works for a couple years now, with breweries, bakeries and distilleries leading the way in terms of project numbers. Organic food sales are also skyrocketing, showing just how rapidly consumer tastes are changing.

That isn’t to say that there aren’t any major hurdles to overcome. Processed foods have become an increasingly controversial topic amongst the general public. Millennials in particular have begun to reject products viewed as being high in sugar and chemicals. This trend has lead to profit losses for many major companies, who now need to act quickly in order to introduce healthier products to their brands, or reformulate existing products to accommodate changing consumer tastes. Indeed, even new governmental food regulations are a reflection of new consumer demands, for instance some areas will begin to roll out taxes on sugar, salt and fats.

Food Safety and Regulation

Food safety has been one of the biggest concerns for industry players these past couple of years, and 2017 is no exception. 2011’s Food Safety Modernization Act (FSMA) is the single biggest reform of food safety laws in the United States since before the Second World War. With a focus on preventing food contamination, it has lead to an increase in FDA inspections and compliance pressures on the food manufacturing industry.

As of 2017, even pet food manufacturers and smaller companies will have to fall in line with FSMA regulations. All companies should expect to have food safety plans and recall plans put into place as soon as possible, in case FDA inspectors come across any issues. This may require hiring employees who are specifically trained to implement preventative food safety measures. Companies may also want to look into freeing up their budget in order to take advantage of recent technological advances, investing in contamination prevention equipment such as specialized food grade metal detectors.

On that note, beyond investing in solid equipment, companies need to become increasingly involved in the world of social media. Social media plays a huge role in consumer trends today, and as the line between information and misinformation begins to blur in alarming ways, it is important for companies to take proactive measures in controlling their public image. Dishonesty comes at a high price in an age where news spreads at the click of a button, and any slip-up can mean the death of consumer trust. As such, it is imperative to have public relations plans ready to go in case of crises related to events such as recalls and scandalous news leaks. 

In terms of the future, companies may also want to begin planning for the day when GMO foods will need to be labelled and regulated, as consumers begin to become increasingly vocal about this particular demand. Companies may also want to think about hiring tech-savvy employees capable of using increasingly specialized, high-tech equipment, and position themselves accordingly with colleges and technical institutes.

Hiring bright students educated in the STEM fields is going to be vital to industry growth as technology begins to play a bigger role in all manufacturing industries. This is true not only in terms of equipment use, but also in terms of research and development. When it comes to keeping up with the latest healthy food trends in light of new transparency laws and safety regulations, employees with the right skills are going to make or break a product’s success.

Top Food Manufacturing Trends

Speaking of healthy food trends, 2017 is the year of “clean eating”. Consumers have made it clear that they want food to be labeled with full disclosure in terms of where and how the ingredients in a product are made. GMO products in particular are seen as Public Enemy Number One, and the public is growing increasingly vocal in their demands for such products to be clearly indicated.

High amounts of sugar and chemicals are also targets of the healthy food trend. Stevia and other cane sugar alternatives like agave are growing in popularity. However, replacing sugar in processed products is proving to be a challenge when it comes to maintaining food taste and texture. That said, it looks like the healthy food trend is here to stay, and companies will need to invest in their research and development departments to satisfy changing consumer tastes.

Fiber and proteins from natural ingredients like fruits, legumes and vegetables are also much more in demand. Ancient grains and sprouts are a hot commodity this year, as consumers look to the past for ‘healthy diet’ inspirations. Take note that the FDA is changing the regulations in relation to what is considered a fiber, as this may influence product formulations in the years to come.

On the flipside, ‘healthy fats’ are making a comeback because consumer have started to turn away from processed products like margarine. They are now embracing foods that had been once been rejected as unhealthy, such as real cream and butter. This development is also reflected in governmental regulations; the FDA have ruled that partially hydrogenated oils (PHOs) must be phased out in 2018. On another note, some consumers have begun seeking “animal-free” products that mimic the taste and texture of genuine animal products like butter, requiring further research and development investments to meet these demands.

In terms of flavour, anything hot and spicy is big this year, as “exotic” spices like piri-piri begin to rise in popularity amongst the new generation of consumers raised on a wide variety of cuisines and tastes. Sweet heat – that is a mixture of hot spices and natural sweeteners such as honey, fruit or molasses – is also a popular trend this year, targeting those who aren’t a fan mouth-burning spices.

Either way, the underlying message is clear: bland cuisine is out. Consumers want exciting palates, and they want them to reflect tastes from all around the world. Asian, Hispanic, Indian and North African cuisines are particular flavour influencers. Fusion flavours such as the currently popular Asian-Hispanic spice mixes are also on the rise.

Industry Outlook

It has been predicted the United Nations that the world’s population will increase by over 30 percent in the next three to four decades. Undoubtedly, the food production industry will continue to grow as a result. However, accommodating new food consumption habits in North America and around the world will have to also reflect changing ecological realities. It will be increasingly important for companies to invest in hiring STEM educated workers responsible for meeting consumer tastes for healthier, eco-friendly products and respecting their demands for safety and transparency at all levels of production.

As such, a focus in food safety will have to remain at the top of the books in 2017 and in the years to come, especially in light of new FDA regulations, which have resulted in ramped up safety inspections. Companies will have to be forward-thinking, preventing contaminations from the source by installing specialized equipment like industrial metal detectors, training their workers on a regular basis, and hiring personnel with the appropriate skills to produce great tasting food that is healthy, safe, and affordable.