How the Food & Beverage Sector Can Adapt to the Rise of E-Commerce

The role of e-commerce is growing even in the food and beverage sector, and the only thing that can be done is to accept the change and adapt to it. Around 36 percent of specialty food and beverage sales currently come from e-commerce platforms, making it a top contender for rising trends with the food and beverage industry, according to the Boston Business Journal. Long story short, getting things like your groceries delivered right to your door is going to quickly become the new norm, and businesses in that industry need to find ways to adjust their business model. Online grocery sales are expected to jump to $29.7 billion by 2021, which is a growth of over 500 percent compared to 2012.

Online shopping might not completely replace grocery shopping, but it’s becoming a staple in society. Research from FMI and Nielsen found that over 80 percent of people who have done their grocery shopping online plan to do so again. Since society must now accept online grocery shopping in its life, it’s time to discuss how the sector can adapt to the rise of e-commerce.

The Role of Technology

Innovation helps fuel development, especially when it comes to the food and beverage sector. According to a 2017 RSM Food and Beverage Monitor survey, 64 percent of successful companies within the industry have developed e-commerce technologies. Consumers want their products streamlined and easy to access. Being able to easily choose, buy and get your food delivered to your door is the name of the game. On top of that, being able to access nutrition information is also key to e-commerce and the food and beverage sector.

Another key thing that connects buyers to products is through the use of social media. Social media helps improve accuracy, boosts buyer satisfaction and increases sales. Sales of specialty beverages and foods are up 15 percent from 2014. The number accounts for the rise of millennial snacking trends, which has a direct correlation to online outlets like Amazon and Costco.

The Job Impact

The speculation is that the move to online sales would result in the loss of jobs in storefronts. However, moving to a new market means that there will be a need for new experts in this type of field. Thos top-talent jobs will most likely have high-paying salaries. Overall, the job impact will be positive, according to Slate. Instead of pushing out low-wage work, there will be an influx of decent paying jobs. These innovations can ensure better work in areas like engineering and software development, thus providing better career trajectories for workers. Cashier jobs are good, but they don’t need to be saved. It’s important to focus on moving forward to the future. Other areas will appear that will be in need of workers.

As the industry changes, it becomes more important than ever to have a Food and Beverage Insurance program special-tailored to operations within this sector. Changing industries bring changes within businesses, and every business should make sure that their coverage does not waver during this transitory period.

About ISU / The Olson Duncan Agency

At ISU – The Olson Duncan Agency, our goal is to provide clients with a total solution, not just a quote or a contract. We provide businesses and individuals with insurance and risk management solutions, and we aim to provide real value and build trustworthy, long-term relationships with our clients. To learn more about our services, give us a call today at (310) 373-6441 to speak with one of our professionals.

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