What is FoodTech? (4th part)
The last week we introduce what FoodTech was.
- If you missed it here is the link: https://medium.com/@licasventures/what-is-foodtech-9f37fe5b8b9a ( First part)
- https://medium.com/@licasventures/what-is-foodtech-2nd-part-c94ca865a0c8 (Second part).
- https://licasventures.medium.com/what-is-foodtech-3rd-part-90a0fcf0e07 (Third part)
Food producers want to produce more efficiently
Market demands higher volumes and low prices
Major buyers in the food industry, such as supermarkets and restaurant chains, are consolidating. The concentration of the market share in food retail* means that supermarkets require higher volumes at lower prices per product unit. Food producers facilitate this by increasing their production capacity, innovating, and improving their efficiency.
- In most Western European countries, the five largest supermarkets have a combined market share of 70–80%.
Food industry invests in automation and digitalization
Further automation, digitalization, and new technologies enable the food industry to improve efficiency. As a result, the number of machines and the availability of hardware and software per employee increase.
Investment potential is high
In the future, several factors will stimulate further growth of tech investments.
- New application areas of technology Innovations increase the applicability of the technology in the food industry.
- Improved affordability Reducing the cost of technology and improving specifications.
- The demand for more and higher quality products Food demand is rising and the market requires higher and more consistent product quality.
- Reduced availability of staff and higher costs Wage costs are rising and the availability of technical personnel is under pressure.
What do the interviewed experts say about the use of technology in production?
“No product is touched by a human hand in the production line anymore.”
“Without highly trained operators, it is no longer possible to run this factory.”
“Our team of data analysts has grown strongly in recent years.”
That’s it for this article about what FoodTech is. Stay updated about new articles by following our LinkedIn page, Twitter page, and, of course, our medium page.
Thanks again for reading this article from the Licas Ventures Team