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January 14, 2022updated 01 Feb 2022 10:48am

Food industry interest in digitalisation – which companies are active?

The digital transformation of the food industry is a hot topic among manufacturers and GlobalData has analysed interest in the area.

Mentions of digitalisation within the public filings of companies in the food manufacturing industry have more than trebled in five years, analysis by GlobalData suggests.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

References to digitalisation were 242% higher between October 2020 and September 2021 than in 2016, GlobalData.

When food manufacturers publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Digitalisation is one of these topics – companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether digitalisation is featuring more in the summaries and strategies of food manufacturers, two measures are calculated. Firstly, GlobalData looks at the percentage of companies that have mentioned digitalisation at least once in filings during the past twelve months – this was 82% in the year under review compared to 44% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to digitalisation.

Of the 50 biggest employers in the food manufacturing industry, Turkey-based Yildiz Holding was the company that mentioned digitalisation the most between October 2020 and September 2021. GlobalData identified 19 related sentences in the McVitie’s owner’s filings –  some 3.5% of all sentences.

Nestlé mentioned digitalisation the second most often among the companies analysed. The issue was referred to in 2.5% of sentences in the KitKat’s maker filings. Other noteworthy companies include India-based FMCG group ITC, Reckitt Benckiser and Unilever.

Across all food manufacturers, the filing published in the third quarter of 2021 that exhibited the greatest focus on digitalisation came from ITC. Of the document's 5,221 sentences, 83 (1.6%) referred to the subject.

In the last quarter, food manufacturers based in western Europe were most likely to mention digitalisation with 0.62% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in the United States mentioned digitalisation in 0.44% of sentences.

This analysis provides an approximate indication of which companies are focusing on digitalisation and how important the issue is considered within the food manufacturing industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning digitalisation more regularly is not necessarily proof that they are using new techniques or prioritising the issue, nor does it indicate whether the company’s ventures into digitalisation have been successes or failures.

Asia-Pacific leads on hiring for digitalisation jobs in food – data

Asia-Pacific sees hiring boom in food-industry cloud roles

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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