Have you ever wondered how the food industry determines which products to launch, which flavors to emphasize, or how to price their offerings? The secret lies in food market research because by deepening into the preferences, behaviors, and habits of consumers, this research guides the strategies of food businesses (both big and small).
The food and restaurant market is a vast and demanding industry that is expanding at a rapid pace.
Whether it is the changing dynamics of dining or the latest in chain restaurant geo-location, food and beverage industry market research requires the most advanced, up-to-date information to create a successful strategy. To thrive in this highly competitive sector, our clients need the best in business intelligence.
Food and Beverage Industry Market Research
The food and beverage industry is in a state of flux. Several factors are creating change in the industry. These factors include urbanization, increased population growth, and changing consumer trends. The trend towards food and drinks made from natural elements is rising worldwide. Also growing is the trend towards online food delivery, which will be the focus of this report.
The recent innovation of Food Delivery marketplaces has been accelerated by the rise of mobile payments, GPS tracking, and Big Data. These platforms use technology to match supply and demand similarly to the ridesharing industry. For app companies, reaching “critical mass” is an important priority, and managing supply and demand is especially important in time-sensitive food delivery solutions.
Food and Beverage Industry Delivery Market Research
Consumers can now order from a broad selection of eateries with a single tap of their mobile phones. Online food delivery platforms continue to increase accessibility and choice. New online platforms are racing to capture consumers and new markets. Platforms are springing up across Asia, the Americas, the Middle East, and Europe. The industry of transporting restaurant meals to the home is experiencing rapid change.
Convenience is an important factor driving the global online food delivery app market. The Americas are the most extensive online on-demand food delivery services market. This demand is due to the high penetration of smartphones. The market for these services is also growing in South America. In that region, several startups are building successful on-demand solutions for food delivery. These startups are taking advantage of South America’s young, well-connected population.
Compared to calling a restaurant, the food delivery app is an appealing solution. Food delivery apps avoid customer pain points of being put on hold for extended periods when calling in during the traditional food delivery ordering process. Consumers also benefit from convenience as opposed to the traditional tedious process of calling out their credit card information. Apps open up consumers to trying new foods and restaurants. The downside is that they reduce human-to-human contact.
Why Is It Important? What Are the Benefits of Food and Beverage Industry Market Research?
Food market research provides a window into the consumer’s mind by uncovering what flavors they are drawn to, what dietary restrictions or preferences they may have, and what price points they are comfortable with. Such insights ensure businesses can create products that resonate deeply with their target audience.
Moreover, with new food trends emerging rapidly (like plant-based diets, keto-friendly snacks, or international cuisine fusions) food market research helps businesses anticipate these trends. It gives them the foresight to innovate and adapt before the market becomes saturated. In-depth research also ensures that businesses understand the regulatory landscape, ingredient sourcing protocols, and quality benchmarks they must adhere to, ensuring the safety and satisfaction of their consumers.
However, this research isn’t merely about understanding what consumers want to eat; it’s about optimizing the entire business process, from product development to marketing strategies. Therefore, it has multiple benefits such as:
• Informed Product Development: By understanding the tastes, preferences, and needs of consumers, businesses can craft products that have a higher likelihood of success. Whether it’s a new flavor of chips or a health drink, being informed by research significantly reduces the risk of product failures.
• Strategic Marketing: Knowledge about the target audience’s preferences and behavior aids in the creation of tailored marketing campaigns. For instance, if market research indicates a rising trend in vegan diets among millennials, businesses can align their marketing messages to resonate with this demographic.
• Pricing Strategy Insights: How much are consumers willing to pay for a gluten-free cookie versus a regular one? Research can answer these critical questions, ensuring that the pricing strategies employed strike a balance between profitability and consumer acceptance.
• Supply Chain Optimization: Understanding market demand through food market research can streamline the supply chain process. If there’s a surge in demand for organic fruits, retailers can ensure they stock up adequately, minimizing wastage and maximizing sales.
• Risk Mitigation: In an industry where recalls and negative publicity can be detrimental, food market research provides insights into areas of potential concern. It could be about ingredient sourcing, packaging materials, or production processes.
Key Players in the Food and Beverage Market
Certain companies and entities have managed to carve out significant market share in this industry, influencing consumer preferences, setting industry standards, and driving innovation.
Understanding these key players provides a clearer picture of the market’s dynamics, as they not only determine current preferences but also influence future trends through their research, innovations, and marketing strategies – and here’s a brief overview of the role these key players have in the food market:
• Multinational Food and Beverage Corporations: Companies like Nestlé, PepsiCo, and The Coca-Cola Company are leading the industry. Their vast resources allow them to conduct exhaustive food market research, helping them stay ahead by understanding global consumer trends and launching products tailored to regional preferences.
• Fast-Food Chains: Global chains such as McDonald’s, Starbucks, and KFC have a significant influence on the food market. Their vast reach enables them to introduce new items that cater to local tastes in different countries, often setting food trends in the process.
• Supermarket and Retail Giants: Walmart, Carrefour, and Tesco play a pivotal role in shaping consumer purchasing behavior. Their decisions on product placement, promotions, and stock directly reflect their extensive food market research insights on consumer purchasing habits.
• Specialized Health Food Brands: With the increasing focus on health and wellness, brands like Beyond Meat and Chobani are gaining traction. Their rise to prominence underscores the importance of food market research in understanding and tapping into niche markets driven by health-conscious consumers.
• Local and Artisanal Producers: While they may not have the vast market share of multinational giants, local producers, often focusing on artisanal and organic products, hold a special place in the food market. Their understanding of local preferences, traditions, and ingredients, often gathered through grassroots food market research, enables them to create products with authentic and unique selling propositions.
• Trade Associations and Organizations: Entities like the World Health Organization and the Food and Agriculture Organization, while not commercial entities contribute to food market research by publishing reports and studies on global food consumption, nutrition, and food security patterns. Their insights often shape policies and influence market trends.
Food and Beverage Industry Market Research Uncovers Opportunities
Market Research can identify opportunities to recruit delivery personnel, boost customers, and manage demand and supply. Additionally, app companies find that Usability Research (UX) can be beneficial in achieving customer satisfaction and increasing sales conversions.
Partnering with a food delivery company has several advantages. It allows restaurateurs to expand their market, giving them access to the entire city. This market is way more significant than the few blocks surrounding their establishment. It also enables them to gain new customers. Once a dominant food delivery app features the restaurant, it increases its visibility.
Restaurateurs are turning to food delivery as a method to boost declining traffic. Food delivery apps are a secret weapon in the fight to induce more patrons to eat out. Food delivery sales have grown in recent years, while restaurant traffic has flatlined.
Other major opportunities for companies are as follows:
• Spotting Emerging Trends: The world of food is continually evolving. From the rise of plant-based diets to the growing demand for sustainable packaging, food market research provides timely insights into consumer behavior, enabling businesses to jump on emerging trends before they become mainstream.
• Expanding to New Geographies: Every region has its unique palate and culinary traditions. Food market research helps businesses understand local preferences, allowing them to tailor products to regional tastes, thus maximizing market penetration and profitability.
• Innovation in Product Development: By understanding what consumers are seeking (be it health benefits, convenience, or a unique flavor) businesses can develop innovative products that meet those needs, ensuring higher sales and customer loyalty.
• Enhancing Brand Positioning: Food market research can uncover gaps in the market, allowing brands to position themselves distinctively and craft compelling narratives based on research insights.
• Effective Marketing Campaigns: Armed with insights from food market research, businesses can craft marketing campaigns that resonate with their target audience, ensuring higher engagement and return on investment.
• Diversification Opportunities: By exploring uncharted territories in the food market, businesses can diversify their product offerings, ensuring multiple revenue streams and reducing dependency on a single product or category.
About SIS Food and Beverage Industry Market Research
SIS International Research is a leading provider of global market research and strategy. With over thirty years of experience, SIS conducts comprehensive primary and secondary research to deliver the most accurate and updated results. Active in over 120 countries, SIS owns and operates state-of-the-art focus groups and in-depth interview facilities to provide superior data and answers for our clients. We maintain an expansive database with quality recruits, all experts in their field of work.
SIS has extensive experience in food industry market research, particularly in areas of interest including market segmentation, taste testing, customer loyalty, and market opportunity. Additional services range from trend analysis to mobile application development. Due to our international focus, SIS also specializes in emerging markets, particularly site feasibility and market entry strategies. For a full list of our experience in food industry market research, we have provided a sample of resumes and clients that we have previously worked with.