The term food industry seems quite confusing to many people. It is even perplexing to think about what functional areas of foodstuff are covered in the food industry. Or what activities are covered under this term?
The answer is that the food industry is a broad network that covers entire industrial services related to the world’s food. It comprises a chain of industries that are interconnected to each other. To have a deeper knowledge of the food industry, let us move forward.
8 Segments of the Food Industry
To understand this industry thoroughly we have to comprehend its segments which are as follows:
1 – Agricultural Segment
The basic or core sector of the food industry is the agricultural industry. It includes the cultivation of crops, and the raising of livestock, and sea animals. Mostly, conventional methods are used in this industry. Hence, it collects or produces the primary items of our foodstuffs. For instance, the tea that comes in custom tea box packaging is the cultivation of this segment of the food industry.
2 – Production Segment
The production segment is a combination of the manufacturing and processing industries. These industries use harvested or raised items from the agricultural sector. After applying advanced techniques and methods, the process finished goods for markets. This is a step-by-step process and each step is a must. Examples of the products of this sector are food supplies for human consumption. This ranges from basic to special consuming items.
3 – Marketing Segment
People think it is a separate industry that has nothing to do with the food industry. However, it is an essential part. The marketing segment of the food industry includes all the advertising and promotion of foodstuff. Whether the food item is new or old in the market their marketing campaigns come under the marketing segment of the food industry. An example of food advertising is custom tea box packaging.
4 – Distribution Segment
For the food industry to grow its customer line, its items should reach every food market. Therefore, it has a distribution structure that is composed of multiple businesses, companies, wholesalers, and retailers. These organizations gather items from manufacturers. For storage, they accumulate the items in stores or warehouses. On-demand, they deliver these products to other producers, marts, grocery stores, retailers, restaurants, cafes, etc. For instance, green tea is sold out in custom tea box packaging or tea packaging wholesale.
5 – Regulatory Segment
Just as other industries have a regular body, the food industry also has a regulatory part. This means that all other segments of the food industry have to report this segment regarding every activity. Besides this, regulation is done regarding the manufacturing and selling of food products. However, this regulation is operated under national, international, local, or regional rules. This ensures food quality, safety, and security.
6 – Research And Development Segment
The research and development area is based on finding innovative technology or ideas regarding foodstuff. This is also a diverse portion whose sole purpose is to contribute to the food sector. The research fields are food science, food technology, food microbiology, etc. Recently, a new research field is adopted namely food engineering which is focusing on food manufacturing, conservation, storage, control, etc. Hence, scientists are expecting increased development in this industry.
7 – Educational Segment
The educational segment of this industry involves all academic approaches and consultancy. The purpose of this segment of the food industry is primarily to educate people on how to work in a particular segment of this industry. For example, food science is being taught to students who want to join the food industry in the future. Chances are that other particulars will also be taught to students in the future.
8 – Consumption Segment
The consumption portion of the food industry refers to the overall consumption of energy by it. This industrial sector consumes almost 30% of the overall energy of the world. Different techniques are being employed by the food industry all over the world to conserve energy. This is achieved by automation, using alternative energy sources, employing fewer power-light systems, and implementing cultural efficiency.
Challenges In the Food Industry
Just like other industries also face criticism from the corporate world and the public. Its different segments face different challenges day by day. Some of the challenges faced by the food industry are listed below:
- Huge losses due to high levels of inflation.
- Enforcing plastic ban in all the segments of the industry.
- Increased demand from customers for innovative food items.
- Coping up with constantly changing regulatory policies.
- Taking care of hygiene, food safety, and food security.
- Labor shortage due to inflation or pandemic.
In short, the food industry is primarily acting to take care of our need for food. It is operating at a large scale to ensure that you eat healthy food. However, it has been facing numerous hurdles due to the pandemic. But don’t worry the increasing population demand for food is still here to push this industry to operate. Hopefully, it will cope with all the obstacles.
