As 2022 nears its end, the EnSight team takes a look back at the year’s challenges and wins, and then shares what we expect to see as we enter 2023.
2022 Recap
The year was a busy one for the food processing industry. Whether they were producing food for humans or pets, organizations saw demand for quality products continue to grow throughout the year.
This growth and demand pushed many organizations to expand their production facilities, are at least consider it, to enhance their production capabilities. For some, this meant adding on or even building new facilities to accommodate the growing demand for their products.
In addition, after years of fighting labor shortages, some processors made the decision this year to consolidate their teams and facilities. This meant that rather than having satellite offices, various plants and remote team members all over the country, some organizations chose to move their processes and people to their home base, even requiring some remote workers to move closer to the headquarters. This is likely because companies have spent the last couple years learning how to operate with fewer team members. Now, they’re embracing those changes and codifying them to create a leaner organization going forward.
Those labor shortages have also pushed organizations to stop “kicking the tires” on automation integration and actually adopt it. EnSight saw and helped a number of organizations move forward with new robotics and/or automation integration. The biggest area of growth was palletizing and case packing–two areas that are typically repetitive jobs that can be easily automated.
The cost of labor has also influenced robotics and automation integrations. Processors are now paying more for qualified labor. This means that if there are areas where they can install a robot instead of a human, they will likely consider it.
Labor costs have also caused product prices to increase as processors work to recoup those extra expenses.
Another reason that processors adopted more automation solutions in 2022 is information. Robotics are still fairly new to the food processing industry, and there was still confusion as to what exactly these machines could and couldn’t do. Before 2022, EnSight talked to a variety of organizations interested in pursuing robotics and automation, only for them to be discouraged when the project was too complex for the systems. Now, though, processors have a more realistic idea of what is truly possible, as well as insight from their peers and competitors into their benefits. This pushed organizations from “just looking” to actually pulling the trigger on these projects.
In regard to specific categories, the EnSight team saw demand for beverages (especially energy and nutrition drinks), “easy” meal kits, baked goods and pet food continue rising in 2022.
Families and individuals are busy, but still emphasize health, hence the beverage, meal kit and baked goods growth. Consumers want food they can often grab and go, or at least put together in less time. But, they still want more natural ingredients and good taste. We have watched numerous food and beverage producers work to meet those needs.
During the pandemic, many families adopted pets. Those pets still have to eat! Plus, like on the human food side, we’ve seen pet food consumers looking for healthier, more natural foods for their pets.
In addition, the EnSight team found that two more food categories were gaining attention and causing discussions in 2022-alternative proteins and cannabis.
Plant-based foods absolutely blew up in 2022. What used to be a small section of the market has grown exponentially. Now, consumers can find plant-based foods at virtually any chain restaurant or grocery store. In addition to that, our team has noticed other alternative proteins, e.g., crickets, garnering attention. And then, in November, the New York Times reported that the FDA officially cleared a California company’s lab-grown meat as safe for humans.
Alternative proteins and lab-grown meat face an uphill battle, of course. They both depend on consumers changing their mindsets and getting over the stigmas associated with those protein options.
Cannabis is along the same lines. Companies are talking about it, but none of the big players are pursuing it at the moment. That’s likely due to its sketchy legal status, which varies from state to state. It’s legal in some states, decriminalized in others and outright illegal in the rest. Plus, it’s illegal at a federal level. This makes it harder for larger companies to consider it too much, let alone actually produce food products using it.
On the negative side, the food processing industry continued battling labor shortages in 2022. But, as previously mentioned, many of them have found ways to overcome those challenges by streamlining their teams and/or investing in robotics and automation solutions.
An issue that’s not so easily overcome would be lead times for new machines and prices. Food processing machine OEMs are still struggling to reliably secure controls and electronics systems for new machines. These supply chain issues have the potential to delay orders by weeks at a time, and can also result in unexpected price changes.
2023 Outlook
There is no indication that any of 2022’s trends will fade anytime soon. Instead, we would urge food processors to think ahead to overcome potential challenges. If a processor knows they need a machine, don’t wait until the last minute to order it. That’s just inviting disaster. Instead, start conversations with machine OEMs early. And have patience. Remember, everyone is working with the same challenges.
At EnSight Solutions, we specialize in providing turnkey solutions that help organizations overcome their challenges and improve their output and quality. We offer everything from high-shear blenders to conveyors to robotics systems and more, all ready to help you reliably provide your customers the product they’re looking for. In addition, we have developed ways to help us overcome supply chain issues, allowing us to continue offering industry-leading lead times.
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