What’s Eating Us in 2024? Inflation, Automation and Meatless Meals, Oh My!

Food Trends 2024

The last few years have seen big changes in the food industry, from pandemic home baking frenzies to supply chain disruptions and record-high inflation. In spring 2024, it appears that avian flu is affecting chicken farms and even dairy cow herds in Texas and Kansas, indicating some food producers may be in for continuing disruptions.

Financial conditions — U.S. inflation and global supply chains — appear to be stabilizing, at least for now. But market conditions are always in flux, and food companies need to stay on top of changing consumer preferences in order to remain profitable and prepared for the future.

For restauranteurs, U.S. food-away-from-home prices (year over year) increased by 4.2 percent from March 2023 to March 2024. Prices aren’t going down, but the increases are expected to keep slowing. Restaurant prices will likely show a larger increase than food-at-home costs, expected to increase 4.2 percent for 2024 as a whole, compared to 1.2 percent for food at home.

What trends should food, beverage and hospitality companies be watching in 2024?

• Demand for more meatless, plant-based or vegan options, with more innovations in tasty meat replacements based on soy, legumes or mushrooms; more fermented products; and even cell-based products, although lab-grown meats face technical, regulatory and consumer acceptance hurdles
• New technologies, particularly automation and wi-fi connected systems that can improve the efficiency of manufacturing lines and enable new capabilities such as high-pressure processing (a low-temperature pasteurization technology)
• Changing consumer tastes, as more people seek out spicy global flavors; in addition, mushrooms and fermented foods continue to show strong demand for their perceived health benefits
• Continued strength in meal kits for home delivery, either prepped for home cooking or pre-cooked
• Inflation-spurred changes in consumer habits, as rising costs prompt people to seek out less expensive alternatives

Even trends that are short-lived can still affect your cost contracts, sourcing, material costs and inventory. They can also leave a permanent mark on consumer habits. Thriving in these times will require your company to stay informed and be prepared to adapt your strategies.

How to Prepare for Success in the Coming Year

No one knows exactly what’s ahead, but these are some tactics Weaver recommends to help you stay successful:

Meet a Meatless Market. Every company will be affected differently by the rising demand for plant-based options. Is your business likely to see demand drop? You might consider adding one or more meatless or vegan alternatives to your product line.

Keep an Eye on Inflation, not just nationally but up and down your specific value chain. Watch for demand tapering off, or sales shifting from more expensive offerings to lower-priced ones. Be prepared to tailor your purchasing decisions throughout the year, if conditions shift.

Investigate New Technology. AI, automation and robotics are all hot topics right now, and they could revolutionize everything from purchasing algorithms — allowing you to reduce your cost of goods sold and minimize waste — to processes on the manufacturing floor. What technologies hold the most promise for your business?

Weaver professionals can help you prepare for these changes and many others. Our team serves clients in all segments of the food, beverage, and hospitality industry, and we can help you thrive in changing times. Contact us today.

Authored by Thomas Morris, CPA

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