Food manufacturing businesses can be highly profitable when done right. As a company, you have the ability to manufacture food products that can be distributed around the world. They can be sold by retail vendors, online stores; or even bought by restaurant businesses. There is so much potential, but a lot of these businesses are struggling right now.
In 2022, there are lots of things for food manufacturing business owners to be concerned about. Today, we list the three biggest fears you might have when running one of these companies:
Supply chain issues
Perhaps the biggest struggle is the supply chain. For a food manufacturing business, you rely on getting supplies and sending your products out to buyers. Consequently, it is hard when there are elements of your supply chain breaking down. Businesses are still feeling the effects of the pandemic, with global shipping continuing to be an issue. For food manufacturing companies, it means that goods aren’t getting to them as regularly as they used to. It means you have to seek out other suppliers and try to establish a new supply chain, which is very challenging and costly.
Food hygiene concerns
Again, another problem that boomed with the pandemic. The main reason the pandemic spread was through people ingesting animals. As such, the public has begun to worry about food hygiene more than ever before. Food manufacturing companies are under scrutiny, meaning more money needs to be invested in ensuring that all food products are safe and free from contaminants. It means investing in lots of dolav liners and other products to protect food during transportation. If a food manufacturing business doesn’t keep hygiene a top priority, it could be the end of the company altogether.
Lastly, it is no surprise that carbon footprints are a concern for businesses like these. According to some scientific research, the global food production industry contributes to 17.3 billion metric tonnes of carbon dioxide every year. For context, that’s nearly twenty times the commercial aviation industry. It’s a serious problem that more and more people are becoming aware of.
Therefore, there’s more pressure on food manufacturing companies to work on lowering their carbon footprint. This means altering the way that things are done to use as little energy as possible. It’s a very big struggle for many smaller companies who are trying to compete with the big boys. You have to juggle the profitability of your business with its environmental impact. A lot of owners are unable to do this, leading to the business failing.
Truthfully, these three problems aren’t unique to the year 2022. They have existed in this industry for a long time, but have been exacerbated by recent events. Now, they are more prominent than they’ve ever been. It doesn’t mean that food manufacturing is a dying industry, it just means that you have more to think about when starting a business in this sector. In fact, if you want to be successful, focus on these three struggles and how you can deal with them. That should set you up for a brighter future.