The food & beverage sector has always been one of the fastest-moving markets on the planet. Every year, major shifts in consumer behaviours, marketing trends, technological advancements, and industry practices change the F&B landscape in surprising ways.
2024 will be no different.
As always, F&B businesses will need to stay ahead of the curve to remain competitive, innovating and evolving to keep up with the times. Strategies that worked in previous years aren’t guaranteed to work again, and companies that can adapt to the latest trends will be infinitely more likely to succeed.
However, it’s not just external market trends that F&B brands need to focus on. To drive sustained growth and develop effective strategies, companies will also need to attract and retain industry-leading talent - particularly in the finance department.
In this guide, we’ll highlight a few of the biggest trends likely to dominate the F&B sector in 2024 - and explore how businesses can navigate this dynamic, fast-paced industry.
1. Embracing new customer priorities - and new technology
The F&B industry is constantly evolving, and businesses frequently need to re-evaluate how they create their products, engage their customers, and run their operations.
One major industry-wide focus in 2024 will be transparency in product labelling.
While F&B companies will need to keep up with ever-changing regulations around packaging and labelling, they’ll also need to focus on being transparent. Consumers are more clued-in than ever when it comes to ingredients, so they’ll want to know as much as possible about what they’re buying - including more information about ethical sourcing and supply chains.
The more open and candid businesses are with their labelling in 2024, the more likely they are to win customer trust.
Unsurprisingly, sustainability will also remain a hot topic this year. Many shoppers are now keenly aware of the importance of sustainability, so F&B companies that can offer environmentally friendly, innovative product alternatives will be ahead of the pack.
Alternative chocolate, for example, is already becoming incredibly popular. These products taste and smell exactly like the real thing, but push back against the deforestation associated with using cocoa - and this is a winning combination for many consumers.
Finally, the rapid rise of artificial intelligence will continue to deliver new opportunities for businesses in the F&B sector. Food and beverage brands can utilise AI in a mind-blowing number of ways, from optimising production lines to monitoring market trends and creating financial forecasts.
F&B companies that are making big strides in sustainability and effectively leveraging AI will be in a strong position to grow in 2024.
2. Harnessing the power of social media marketing
An effective social media marketing strategy isn’t just a bonus for F&B companies in 2024 - it’s mandatory for success.
The worlds of social media and food/beverage are now intrinsically linked, and if businesses want to flourish this year, they’ll need to ensure that they’re actively engaging customers through social channels.
Not only does social media marketing enable F&B businesses to reach a colossal audience of potential customers, but it also allows them to jump on (and pioneer) new content trends that have a direct impact on shopping behaviours.
Mochi dessert brand Little Moons, for example, utilised TikTok marketing to engage younger audiences online. The result? A staggering 1,300% sales increase in a matter of months.
Social media is incredibly influential when it comes to popular F&B products, and the right video ad or influencer partnership can skyrocket sales. Both established corporations and ambitious start-ups can achieve outstanding results through social media, and this will continue to be a key battleground for the F&B sector in 2024.
3. Maintaining competitive pricing
The cost-of-living crisis has forced many consumers to look for cheaper F&B products. While it’s true that shoppers are becoming more conscious when it comes to sustainability, that doesn’t mean they’re not also keen on affordability.
In December 2023, 46% of UK adults claimed they were buying less food when shopping. 52% also reported an increase in their general living costs, and 91% cited higher food prices as a primary reason behind it.
All of this data confirms that pricing will be extremely important for F&B businesses in 2024.
Brands will need to build a pricing strategy that enables them to attract customers in a fiercely competitive marketplace, while also maintaining profitability. That means knowing how to leverage discounts and promotions without eating away at long-term revenue, and developing a clearer understanding of customer behaviours.
Economic conditions will inevitably shift throughout 2024, and those F&B companies that can stay agile with their pricing will be the most likely to see consistent growth.
4. Recruiting high-level finance talent to fuel growth
F&B brands that build qualified, experienced, and ambitious finance teams will have a serious competitive advantage in 2024.
The finance department is the beating heart of any business, and in a fast-moving industry like F&B, companies need finance experts who can help them navigate changing conditions.
For one thing, finance professionals will help F&B brands establish solid business foundations. They’ll help companies set effective budgets, manage resources, optimise processes (i.e. production & distribution) and forge relationships with key supermarkets.
However, senior finance leaders will also play a pivotal role in generating long-term revenue.
Experienced finance experts will work closely alongside business founders to look beyond the short term and build strategies for sustained growth. They’ll establish clear revenue targets, identify areas for improved efficiency, and allow F&B companies to prepare for different business scenarios.
At Harmonic, we specialise in helping growth-oriented F&B businesses connect with market-leading finance talent. Our extensive industry knowledge enables us to find the best hires for your company, meaning you can recruit candidates who are aligned with your culture and equipped with the expertise you need to drive growth.
2024 is undoubtedly going to be an exciting year for the F&B industry.
While companies are sure to face challenges along the way (i.e. economic turbulence and high competition) they’ll also be able to capitalise on massive opportunities in social media marketing, sustainability, and artificial intelligence.
If F&B businesses can anticipate these trends, and work alongside qualified finance professionals to develop future-facing strategies, they’ll be ready to tackle 2024 head-on!
If you would like to discuss potential hires for your team within the F&B space, please get in touch with [email protected]