Another new year is almost upon us, meaning food and beverage distributors will be taking a look at their results and the trends that will influence the industry in the coming year. For businesses to operate as effectively as possible, it’s important to take a close look at the conditions shaping the industry, including the various challenges. Here are some of the challenges still facing this industry and three technology trends food distributors are likely to embrace in 2023.

Environmental protection and sustainability have been hot-button issues for some time. Driven largely by consumers who want healthier options that don’t cause damage to the planet, sustainability is having a significant impact on the global food supply chain.

Ask anyone in the restaurant industry right now, and they will probably tell you that supply chain issues, along with increased food costs, are their most pressing challenges. Everything, from fryer oil to meat and vegetables to dish soap and freezer parts, is in short supply. And, when a restaurant can get its hands on the items it needs, they find themselves paying much higher prices. 

The U.S. restaurant industry has been regaining momentum after extended periods of shutdowns due to the COVID-19 pandemic. Diners are enthusiastically returning to take advantage of new and favorite options for in-house dining. However, supply chain issues continue to disrupt the restaurant industry.

The global food supply chain is facing significant challenges. From widespread staffing shortfalls, the war in Ukraine causing increased energy prices and grain scarcity, and rising levels of food waste, there’s a growing concern about food price inflation and potential shortages.

You aren't wrong if you've noticed that food prices are skyrocketing along with everything else. Because global supply chains tend to be interconnected, when one price goes up, others tend to follow. Back when traveling and shipping something was simple, price hikes weren't a concern. Of course, things have changed.

Some of the biggest challenges facing the food supply concern things like visibility, traceability, and skyrocketing costs. These are happening at the same time consumer shopping behaviors and preferences are shifting, putting additional pressure on food growers, manufacturers, logistics companies, and sellers. 

It’s not unreasonable for consumers to expect fresh, safe, and delicious food on their tables at mealtime. But the job of getting food to the right places at the right time has become increasingly challenging. 

One thing that the COVID-19 pandemic truly brought home is that smooth, efficient communication between parties is one of the most crucial aspects of successful food supply chain operations.

Effective communication helps companies to respond quickly to counter each disruption while anticipating future challenges. One of the best ways to do that is by using technology.

More consumers are thinking about how the delicious food they consume arrives on their dinner plates. There are a lot of steps involved, and some of them can be unappetizing or even unsafe. 

And the businesses that bring food to consumers have a lot to consider as well. Every farmer, processor, and seller is responsible for some form of food management. Organizing delivery, arranging suppliers, and figuring out food costs are all part of the supply chain process.