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2022 Food & Beverage Industry Report
The global food & beverage services market is forecast to grow from $3,232.94 billion in 2021 to $3,678.61 billion in 2022. That represents a compound annual growth rate (CAGR) of 13.8%. Growth is primarily due to companies rearranging operations amid recovery from the COVID-19 pandemic that resulted in so many challenges for the industry. By 2026, the market is expected to surge to $5,235.52 billion at a CAGR of 9.2%.In 2021, the largest region in the food & beverage services market was the Asia Pacific region, followed by North America.The industry will continue to benefit from the increasing digitalization of food services. Consumers ordered more food online during the pandemic and are continuing to prefer to do so. This trend is likely to continue and will drive the market in the future.Technology is also being adopted in more restaurants to improve customer satisfaction and drive sales. These innovations include self-ordering touchscreen kiosks and a variety of mobile apps for customized orders, quick payment, digital entertainment, and gaming.Inflation, Supply Chains, and Labor ShortagesWhile COVID lingers, numbers improve, and many restrictions are lifted. But other issues are facing the industry. These include inflation, ongoing supply chain problems, and widespread labor shortages. Inflation is a problem everyone faces, including consumers, food processors, grocers, and restaurateurs. This high inflation is expected to persist through most of 2022. Meat processors now have to predict how inflation and supply issues will impact consumer behaviors. Most supply chain issues were due to restrictions and shutdowns during the pandemic. But that is not the only cause. There have been unpredictable and increasing demand from overseas. And extreme weather issues have been causing problems for agriculture, affecting the production of a wide range of products and services.But the common thread that can be identified through all of these issues is the lack of labor. Nothing gets produced, processed, packaged, transported, cooked, or served without struggle. Labor shortages are expected to be a massive factor for the food & beverage industry this year. Plant-Based FoodsPlant-based alternative proteins continue to disrupt the food & beverage space as more companies get in on the trend, causing the prices to drop. Consumers are becoming more interested in trying these products, especially as meat costs are up due to inflation. Data shows that more customers are willing to try these products for the first time. However, there are challenges to getting them to come back. Many people still find the flavor unappealing. These products are also highly processed, so the nutritional numbers are not as good as one might expect from a “vegetarian” type of product. Most plant-based products are still high in fat and sodium and some mysterious-sounding ingredients. Food companies view the plant-based category as one of its own rather than a replacement for actual meat products.