The food and beverage industry of the United States plays a vital role in the country's economy and growth. According to the US trade data by country, the food sector accounts for about 5% of GDP and 10% of jobs in the nation. However, the COVID-19 pandemic has brought a greater impact on the food and beverage industry of the US. It has turned the entire food and beverage industry upside down.
The US trade data of 2020 suggests that between April and July, take-home grocery sales increased by 17%, setting the record for the highest growth period since 1994. Moreover, online food shopping has also grown in popularity, attracting new audiences.
Change In Consumer Preferences
One of the major factors that affected the food and beverage industry due to COVID-19 is the dynamic consumer needs. As a result, the population became more health concerned and took the steps accordingly. Several points that have contributed to this shift include:
- People are growing more health-conscious, seeking more natural and organic products and eating fewer packaged and excessively processed foods.
- Due to safety concerns, consumers stopped approaching street vendors for snack needs, hence a threat to unemployment.
- Consumers around the world are more likely to emphasise healthier and locally-based products than they were before the pandemic.
- Nearly a quarter of all Americans now eat more plant-based foods. Therefore, a great opportunity for the food and beverage industry.
- According to some studies and research, approximately 50% of the US population is cooking at the home post the pandemic. Therefore, the new normal in the United States points towards eating at home through cooking or home delivery of food products.
- COVID-19 posed a huge threat to the meat industry as people reduced meat and fat consumption due to safety and health concerns. Moreover, the prices of animal-related products such as meat and beef increased to a greater extent.
Technology Driven Food And Beverage Industry
The food and beverage industry of the US has undergone innovations for the increased safety of the country's population. The following points are into observation:
1. Smartphone Applications
The pandemic has resulted in a heavy decrease in restaurant dining. A major part of the food and beverage industry has shifted to online mode. Hence, provisions of contactless delivery have been. Moreover, foods and beverages are delivered on doorsteps with just a click on smartphone apps.
2. Innovative Alternatives
COVID-19 has hastened the adoption of innovations that had previously struggled to gain attraction. It includes virtual tip jars and mobile order-and-pay alternatives, such as those offered by fast-food titans that include KFC, McDonald's, Burger King, Subway and more.
3. Contact-Less Machines
Various machines have been installed in restaurants for the circulation of food and cash in a contact-less manner. For instance, the coca-cola beverage company has introduced a new innovative technology in which customers can self pour without any external contact with just a scan on their smartphone.
Hence, consumers are increasingly ordering groceries and other food products online due to increased internet penetration and growing demand for convenience. The food sector is never failing to impress the world with its innovative technology and changes.
Food And Beverage Industry: Import-Export Trends
It is very important to analyse the US import-export data to gain more insights into the performance of the food and beverage sector.
Due to the pandemic, there has been a huge restriction in the movement of workers and food trade policies. Moreover, there has been a major disturbance in the food supply chain due to financial constraints and other factors.
The manufacturing sector of each industry in the world has been hit badly due to the pandemic, and the food and beverage industry is no exception. The food sector being a fundamental unit of survival, has undergone several challenges.
Due to COVID, the government has laid multiple restrictions on transportation facilities that have affected the country's exports and imports significantly. As a result, some labour-intensive industries such as cattle production, horticulture, planting, harvesting, and agricultural processing experienced major difficulties, thereby causing a threat to the food production and supply chain.
As a result, as per the US trade data by country, the exports of food and beverages were as low as 9,950 million USD.
Furthermore, in importing countries, panic-buying behaviour has been observed due to export limitations imposed by major exporting countries, and prices have risen due to increased demand for items.
As a result, in 2020, the food import to the US gradually declined to 6.8%. Moreover, due to an increase in demand, the prices of food products accompanied by alcoholic beverages stretched upwards.
The New Normal
Hence, the global crises led due to COVID-19 has brought numerous changes in the food and beverage industry in the United States. As a result, the sector underwent several obstacles but came up with innovations to serve the customers globally.
Many employees lost their jobs, and many started their businesses. At the same time, technology has been a major factor in the success of the food and beverage industry. The US import-export data showed a tremendous increase.
This new normal won't change overnight, even when the pandemic leaves no traces. Moreover, the whole industry has started to adapt itself to new policies and demands, thereby ensuring good health and safety.
As per the US trade data, in May 2021, the food and beverage export of the country has risen to 13,981 million USD. This reflects how the government is trying to cope with the harms caused by the pandemic and is showing commendable performance everywhere.