Food and Beverage Production

The food beverage and industry has changed dramatically in a very short time. Frozen foods, for example, were a novelty in the early 1950s. Now, millions of homes in the United States use frozen foods in some form. Many products that formerly could only be processed by hand can now be completely processed by automated equipment, so it is possible for products to be harvested, processed, and packaged without ever being touched by human hands.

Some areas of the food and beverage industry have become virtually obsolete, while others have gained in importance. It is difficult to predict what this dynamic industry will be doing in another 30 years, but one thing is certain: People will always need to eat.

The growth of the food and beverage industry has not happened simply because people have to eat and drink or because of the population increase. This extra growth has resulted from many things—good management at all levels, teamwork among all segments of the food and beverage industry, heavy investment in research, new and improved products, modernization of plants, new equipment, automation, and a great deal of advertising and promotion.

The U.S. Department of Labor projects that employment for food processing equipment occupations will grow by 7 percent through 2033, while employment of some workers will decrease slightly, such as butchers, 2 percent decline, and others will have job growth, such as bakers, 5 percent. The sorting, cutting, and chopping tasks performed by these workers have proven difficult to automate, so employment among hand workers will rise along with the growing demand for food and beverage products. Automation is likely to decrease opportunities for machine operators and increase jobs for industrial machinery mechanics. Employment of technologists and scientists in the food and beverage industry is expected to be faster than average, at 8 percent, through 2033. Efforts to improve safety, particularly against the risk of bioterrorism, and find solutions for major issues such as feeding the increasing population, loss of arable land, deforestation, the availability and cost of usable water, pollution, and climate change will drive opportunities.

Also, despite industry efforts to self-regulate and provide consumers with healthier, safer food and beverage choices, problems remain:

• up to 40 percent of food is not eaten or is wasted, according to the U.S. Department of Agriculture
• each year, 48 million Americans are made ill by food they have eaten, according to the Centers for Disease Control and Prevention
• About one-third of Americans surveyed say that their food and beverage choices are affected by climate friendliness, according to a 2023 Foodinsight.org survey
• Approximately 60 percent of the foods that Americans purchased in 2019 contained food additives, representing a 10 percent increase since 2001, according to a study by the Journal of the Academy of Nutrition and Dietetics.

As researchers discover new links between health and the types of foods and beverages people consume, the food and beverage industry will continue to respond with new foods, beverages, preparations, and processing techniques to meet the latest consumer demands and government regulations.

The 2020 coronavirus pandemic had a negative effect on the food and beverage industry. Consumer habits and demands changed abruptly. Demand for snacks, such as potato chips and pretzels, sweets, such as ice cream, alcoholic beverages increased. Consumers also stockpiled staple foods and meats, creating temporary shortages at grocery stores in some areas. At one point in 2020, 87 percent of consumers reported that they found products out of stock. Restaurants nationwide closed in response to restrictions on public gatherings, but many found creative ways to continue serving customers with takeout orders and outdoor dining. Grocery store and other food distribution workers were deemed essential workers, which allowed them to continue working. Some employees, though, chose to stay home or change their employment to avoid risk of being exposed to coronavirus.

The global food and beverages industry experienced slow growth in 2020 and early 2021, but has since rebounded and strong growth is forecast for the years to come. Statista predicts more than 4 percent annual growth for the U.S. food industry and nearly 10.7 annual growth in the U.S. beverages industry, from 2024 through 2029. According to the research group Markets and Markets, the food and beverages industry will continue to have an increased focus on sustainable practices, growth in plant-based alternatives, and innovations in food automation, precision fermentation, and other technologies. Food and beverage companies will also continue to experience heightened competition as they work to satisfy customers' preferences and to source products ethically.