How food and beverage companies can succeed in the microvertical space.
You can see it happening in supermarket aisles. Shoppers are moving their carts away from the big food brands and toward niche brands and specialized, fresher products.1 You can see it in the financials as well. The top US food and beverage companies have lost about $18 billion in market share since 2009, reports Fortune.
In this period of change, companies are differentiating themselves by focusing on specific niche, microvertical markets. By going niche, they can offer consumers unique products that appeal to highly specific consumer demand. But, developing a microvertical or niche business means taking on a range of new challenges. You must learn new skills, develop new and unique products, and rely on smaller production runs to produce higher margins.
You can only go big by going small.
Being profitable as a food and beverage manufacturer requires you to have comprehensive visibility into what works for you, the right data to help inform your decisions, and the flexibility to adapt to changes.
What the consumer wants can change with each year, but there are some consistent trends we’re seeing that will continue in the years to come. Fresher foods, fewer ingredients, micro-local ingredients, alternative flavors, and eco-packaging and labeling, are just a few trends that are especially suited for microvertical food and beverage companies.
These demands will change over time. New microverticals will come into play, while others will disappear. When you’re using the right data and analysis tools to inform your sourcing and procurement, you can know for certain where you have to be, what’s profitable and what isn’t, and how to get ready for the next big market—whatever that may be.
Read this paper to help you spot new opportunities quickly.
And, as always, contact ICCG to help provide you with insight and information. Schedule a complimentary consultation to review your questions.