BY CHARLES BRAND
EVP C PRODUCT MANAGEMENT & COMMERCIAL OPERATIONS, TETRA PAK
The dairy industry is changing fast. To succeed, dairy businesses really need to be dynamic, drive category creativity, embrace technology and stay in front of changing consumer demands.
There can be a range of global factors cruising this change: demographic patterns, digitalisation, setting and resources, and Marketplace 4.0, to name a few.
Each aspect presents different challenges to the cogs in the global dairy importance chain, from farm to fork. For example, farmers at the start of the chain are being heavily impacted by the global forces impinging on the movement of milk.
Demographic evolution is also a key factor which affects the overall value chain, that has a particular impact on the producers. Mega cities are becoming environments in themselves, which forces the worthiness chain to evolve, as well as pushes the producer to adapt to fulfill rising demands.
As consumers are turning into progressively more demanding and the customisation of products and categories boosts, dairy producers are confronting falling profits on in the past standardised and stable categories. In order to counteract this, companies need to become more efficient by implementing a range of digital remedies. Adopting a holistic approach utilizing insight driven production, joined plants, and automation companies can combat the adverse impact of change along with streamline the supply chain.
Another force pushing the value chain to improve dramatically is consumers’ online pastime. This is transforming the retail price scene as well as the shopper expertise, altering the entire shopping vacation. The fast growth of online supermarkets has a disruptive influence on small business strategies and the physical expansion of retailers. Consumers are also more and more demanding of the brands in addition to categories they consume, seeking products that are customised to satisfy their needs. They want to fulfil their particular aspirations of having a healthy, rounded lifestyle and therefore require goods that will provide them with this shame free wellbeing. Producers really need to adapt and provide new products in order to meet these new needs.
With fads in mass customisation, as well as the increase of consumers wanting to recognize and experience new things, we’ve identified some areas that people can work on as an industry to turn these challenges straight into opportunities.
Cracking new categories
To meet the switching needs of consumers, dairy producers can look for new opportunities through diversifying into new categories, or simply driving the evolution of existing categories. This makes sure flexibility in the supply chain as well as the invention of relevant merchandise.
Think beyond your niche
In light of market changes, it is important that dairy makers think beyond their central area of product offering as well as identify gaps in the market, where they can expand to attain needs of the consumer.
To find their way the changes in the dairy importance chain, no one can succeed on your own. Whether a small, medium or large business, irrespective of the actual geographic location, you need experienced partners that can help to enhance operations from start to finish. Expertise from end-to-end, across product development, finalizing, packaging and digitalisation, is vital.
End-to-end encounter integrates processing, packaging, automation and technical services. This means looking across an entire surgery to identify opportunities to extract equally as much value as possible. The result is not only added convenience, it is also elevated efficiency, quality and dependability.
As an example, we identified a new whitespace in the ambient drinking yogurt category, and went on for more information regarding different ways to understand the potential during this category. We looked at homework and design capabilities, product development, the labels and processing technology so that you can offer our customers the very best solutions to enter this category and to guarantee a high level connected with quality.
This has resulted in some sort of seamless end-to-end solution for surrounding drinking yoghurt and we have right now also created a capability for the inclusion of fruit and cereal particles. This accessory is of significant value that will consumers and increases the motivation to pay a higher price.
We can certainly all see how quickly transform is happening, and that only dynamic businesses are the ones which will succeed. Our industry needs to glance at the value chain holistically in addition to adopt an efficient end-to-end approach in an effort to stay ahead.