Top 3 Challenges in the Food Industry

What do your peers think about Food Industry?

Food Industry professionals have 3 major problems in their sector: they suffer from high operating costs, and from strict regulations that put additional pressure on companies because of changing directives. Moreover, sustainability is one of the main social issues in the industry.

Food Top 3 peer challenges

number-1Production Costs

Bringing new products to the market and making a profit is essential to the continued existence of a company, and high production costs create challenges in the sector. The increasing interest for more locally grown or raised products makes it difficult for companies to reduce their production costs like they need to, specifically in developed countries.


Changing and tightening food safety legislation and regulations require companies to employ good manufacturing practices and improve quality control standards which, again, has a cost.


Consumer demand for organic food is increasing and the impact of food production on the environment is a big concern, and companies are more and more under pressure to change their habits. By not conforming, they could suffer from bad press and difficulty to sell their product to intermediaries. 

Other Challenges

  • Customer loyalty
  • Pests and diseases, force majeure
  • Shelf life
  • Opportunities in the market

Research-­based trends and short-term forecast

Research shows that food market globalization, food security, sustainability, food waste, malnutrition, resource scarcity, climate change, or the production of healthier foods are some of the biggest challenges in the food industry. By 2050, there will be an increase of 70% in the global food production. (European Commission, Grant Thornton International).

From 2015 to 2019, the dry processed food variety is forecasted to decline a negative CAGR of 1.0% in value terms in Japan, and by 2019 the chilled processed food variety is going to post a CAGR of 1.04% in value terms which will be US$57.0 billion (Agriculture and Agri-Food Canada).

Whether you are an expert in the food industry who would like to keep up with the latest trends or if you are a consultant looking to know more about the sector as a whole, visit us at to get the best market research experience.