Food Manufacturing Industry Trends to Watch: Automation, AI, & the Skills Gap
If you’re in food manufacturing, you’re riding a wave of exciting change. Our industry is booming with innovation, adapting to evolving consumer tastes, and embracing cutting-edge technologies.
The latest data shows the industry’s total revenue in the US is $831.80 billion this year, with the market expected to grow at a compound annual growth rate (CAGR) of 4.06% through 2029. It’s a thrilling time to be in the business of feeding the world. But with great opportunity comes great challenges.
How do you stay competitive in a crowded market? How can you make your operations more sustainable without breaking the bank? And perhaps most pressingly, how do you keep up with the dizzying pace of technological change?
At Alpha Executive Search, we’ve got our finger on the pulse of the food and beverage manufacturing industry. We’ve identified three key trends you need to have on your radar in the year ahead: the rise of automation, the impact of artificial intelligence (AI), and the widening skills gap.
As experts in executive search for leading food and beverage manufacturers, we understand the pivotal role visionary leadership plays in navigating industry change. In this blog, we’ll explore these game-changing trends and their implications for the future of food manufacturing. So, grab a seat at the table and let’s dig in!
The Rise of Automation
The food manufacturing industry is increasingly embracing automation, with larger companies leading the charge thanks to their ability to more easily fund technological upgrades.
For example, ABB developed a compact robotic palletizing cell for Nestlé’s chocolate manufacturing facilities in Brazil, featuring an IRB 660 robot with SafeMove technology that allows safe human-robot collaboration. The robots boosted productivity by a whopping 53% and reduced the cell’s footprint by 30-40% compared to previous installations. Due to its success, the system has been implemented in three other Nestlé factories in Brazil, with 13 palletizing cells already operational and more being installed.
Additionally, Tyson Foods has spent over $1.3 million over the last few years to increase automation in their meat plants. Specifically, they’re increasingly using machines, instead of people, to debone chicken, a labor-intensive job and consequently one with high turnover. One major part of their investment is their new $300 million fully-cooked food production facility in Danville, Virginia, featuring advanced automation and technology to enhance efficiency and safety.
The 325,000-square-foot facility will produce approximately four million pounds of fully-cooked poultry products weekly, meeting increased demand for Tyson brand products in retail and foodservice sectors. The plant created nearly 400 new jobs in the region and incorporates industry-first technologies, including wearable devices for worker safety and high-speed automated packing and palletizing systems.
Looking ahead, the future of automation in food manufacturing is poised for exponential growth and innovation. The use of automation and robotics around the globe has been on a steady upward trend over the last ten years. In fact, the latest World Robotics report recorded 4,281,585 units operating in factories worldwide—an increase of 10% from 2022 to 2023.
We don’t anticipate this shift towards more flexible and adaptable automated systems to slow down any time soon. As the industry evolves, the role of human workers will likely shift towards overseeing and managing these advanced automated systems. Your organization will need a workforce skilled in both food science and technology, capable of programming, maintaining, and optimizing these sophisticated machines to meet changing consumer demands and regulatory requirements.
AI’s Food Industry Impact
AI is rapidly reshaping food production, offering unprecedented capabilities in process optimization and quality control. Leading companies like Kellogg’s are using AI to optimize supply chains and improve inventory management. Their AI-powered systems help predict demand patterns, allowing the company to adjust production schedules and distribution strategies more effectively. By analyzing historical sales data and market trends, AI helps Kellogg’s reduce waste, improve inventory accuracy, and maintain optimal stock levels.
Similarly, olam food ingredients (ofi) recently combined AI-powered research with insights from innovation experts in key regional markets to predict a growing fusion of Eastern and Western flavors in confectionery, bakery, beverages, and snacks. Their research identified Asian flavors like dragon fruit, sesame, and yuzu gaining popularity in the US and Europe, while Western flavors such as butterscotch and salted caramel are becoming trendy in South Asian countries. ofi then created innovative cocoa pairings and concepts to capitalize on these cross-cultural flavor trends, offering food and beverage companies the opportunity to develop new products that appeal to evolving consumer tastes globally.
In the years ahead, the integration of AI with other technologies promises to transform supply chain management and predictive maintenance in food production. As these technologies mature, we can expect to see AI playing an increasingly central role in driving efficiency, sustainability, and innovation across the food manufacturing industry.
The Widening Skills Gap
As cutting-edge innovations surge forward, the food manufacturing industry is simultaneously facing a talent crunch, struggling to find workers whose skills can keep pace with the speed of technological progress.
A recent study by Deloitte and The Manufacturing Institute projected that the U.S. manufacturing sector could see a net need for as many as 3.8 million employees between 2024 and 2033. The shortage is most acute in a combination of digital skills, soft skills, and high-level technical skills (Fig. 1).
To address the skills gap, forward-thinking companies are implementing innovative strategies. Seneca Foods, one of the largest fruit and vegetable processing companies in the US, partners with Cornell Food Venture Center (CFVC) to provide comprehensive support to food entrepreneurs, offering product safety evaluation, process development, and regulatory guidance to help businesses introduce new food products to the market.
Similarly, Mars, Incorporated prioritizes employee development through a comprehensive learning approach, offering guidance, mentoring, and diverse training opportunities from day one. The company’s learning model, Mars University, comprises 11 functional colleges and partnerships with top institutions, emphasizing a 70/20/10 approach that combines on-the-job experience, peer learning, and formal training.
As technology evolves, so will the skills needed to keep pace with industry advancement. As you work to build a robust leadership team, focus on executives who demonstrate adaptability, technological savvy, and a commitment to continuous learning. Look for leaders who have successfully navigated digital transformations or have experience integrating new technologies into traditional food manufacturing processes. Additionally, prioritize candidates with strong change management skills and the ability to inspire and upskill teams. To stay competitive, food manufacturers will need to not only attract new talent but also continuously invest in the development of their existing workforce, fostering a culture of adaptability.
Prepare for the Future of Food Manufacturing with Alpha
As we’ve seen, automation is revolutionizing production lines, while AI is optimizing processes and driving innovation. However, the full potential of these technologies can only be realized with a workforce that possesses the right skills and leadership that understands how to leverage these advancements strategically.
That’s where Alpha Executive Search comes in. Our deep understanding of the food manufacturing industry positions us uniquely to help you future-proof your leadership team. We specialize in identifying professionals who can drive your company’s success in the years to come.
Whether you’re looking for a COO who can optimize your automated production lines, a CTO who can lead your AI initiatives, or key directors and managers in operations, quality control, or supply chain management, Alpha has the expertise to find the right fit. Let us be your guide in navigating the exciting changes ahead in this new era of food manufacturing.
Got a hunger for top-tier food manufacturing talent? Let’s cook up your dream leadership team—reach out to Alpha Executive Search today.