How the Organic Eating Trend is Transforming the F&B Industry and How ERP Can Help

The global food market is expected to reach USD 446.2 Billion by 2030.  The same is true for Sri Lanka. Due to health, sustainability, and ethical concerns, consumers are increasingly interested in organic food. This trend has transformed the global F&B industry, since consumers demand maximum convenience in satisfying their needs. Companies in the sector have started seeking technologies to adapt to the new trend.

How the Organic Eating Trend is Transforming?

Organic eating is not a trend but a change of direction in consumers’ behavior. People are increasingly seeking food that is:

Organic products contain no chemicals added: Non-synthetic pesticides and fertilizers are not used to grow organic products.

Non-GMO: Consumers prefer food free of genetically modified organisms.

Organic grown: People prefer to have foods produced through proper farming practices by considering the environment.

Hygienically sound and much more compliant with nutritional value:  Organic foods are associated with minimum interferences in natural compounds.

It has forced F&B companies to redesign their supply chains and adopt sustainable acquisition methods to meet consumers’ expectations of organic products.

Issues Arising in Meeting Organic Demand

While the organic trend presents opportunities, it also brings unique challenges for F&B businesses:

Complicated distributions: An aspect that makes a detailed tracking of the sources of organic products a little challenging.

Planning: Adhering to the specific regulatory organic certifications can take many hours and money.

Stock management: Organic products can have a shorter shelf life than conventionally produced food items, making turnover and management important.

Pricing limitations: It lowers the chances of processing, packing, and distribution since organic ingredients are usually costly.

Most organizations use ERP systems to overcome these challenges and enhance effective operation and compliance.

How ERP Solutions Support F&B Companies?

ERP for F&B systems offer a single-platform approach to supporting different aspects of F&B outlets, making it conceivable to support the organic eating trend. Here’s how ERP can help:

Supply Chain Transparency

Food and Beverage ERP systems provide up-to-date information about the position of the complete supply chain. So businesses may be informed about how the organic ingredients reach them from the farms. This transparency helps create trust with the consumer and, most importantly, in passing the certification test for organic products.

Regulatory Compliance

The small farmer organizations must follow organic standards. ERP software can assist in this process by automatically creating documentation, tracking certification, and ensuring compliance with set regulations.

Inventory Management

Organic products are perishable and require efficient inventory management. ERP systems control this to prevent excess stock and forecast the stock required in the market.

Cost Management

Organic food has high acquisition costs, so contending expenses are vital. With ERP Software System for Food and Beverage Industry, cost structures can be evaluated, procurement can be optimized, and cost savings can be determined without reducing quality sharply.

Enhanced Quality Control

ERP solutions can also be incorporated at each processing stage to fulfill organic requirements. This is important for avoiding contamination and maintaining the company’s brand image.

Improved Forecasting

Knowledge of market trends is essential, especially in an industry that favors competition. ERP software provides information as an analytical tool to forecast consumer demand. So companies can prepare themselves for the demand for organic products.

Real-World Applications

Most F&B firms have adopted ERP systems as the way forward in the organic trend. For instance:

• Organic food brands use ERP to determine the origin of the consumed products to meet accreditation of international certifications.
• The supplier relationship of restaurants sourcing organic menus leans on ERP to handle and cut food wastage.
• Superb markets of chain retailing of natural foods depend upon ERP sort and analysis of buyer behavior to inventory merchandise.

The organic eating trend is transforming the F&B industry, pushing companies to prioritize transparency, sustainability, and quality. While challenges exist, ERP systems provide the tools needed to adapt and thrive. Thus, F&B businesses should adopt ERP technology to meet these changing market to help the industry succeed.

Conclusion

The organic eating trend is reshaping the F&B industry, emphasizing transparency, sustainability, and quality. While the shift brings challenges such as managing perishable inventory, meeting regulatory compliance, and controlling costs, ERP systems offer a comprehensive solution to overcome these hurdles.

By streamlining supply chain transparency, optimizing inventory, and enhancing quality control, ERP technology empowers F&B businesses to adapt to evolving consumer demands and maintain a competitive edge.

At Blue Lotus 360, we specialize in ERP solutions tailored for the F&B industry. Contact us today to explore how our technology can help your business thrive in this organic-driven market transformation!