There is a rising market for fresh, organic, gluten-free, non-GMO, and antibiotic-free foods, triggering a greater need for more versatile food storage systems. To meet changing consumer demands, businesses in the frozen food industry are scrambling to develop the best warehousing solutions and invest in materials handling equipment for their facilities.

Frozen food suppliers will do well to study industry trends and do market research to identify gaps that they can fill. For example, one of the challenges in the food and beverage warehousing industry is managing a wide range of temperature zones to store the different types of foods consumers want. Bringing these to distribution channels in the freshest condition possible is another logistical challenge.

Another opportunity companies can take advantage of is one that was observed during the World Travel Catering & onboard Services Expo in 2015: the demand for new in-flight food offerings. New Food Magazine reported that visitor feedback from the expo showed a genuine interest in ice cream in particular, so the airline industry is one area wher frozen food suppliers can definitely expand their business horizons to.

In this article, we will delve into those kinds of consumer demands – the factors that would require companies involved in the entire supply chain to step up their processes and come up with solutions to deliver.

By looking into the latest industry trends, as well as the innovations and solutions that some of the world’s top food service companies are using, we will be able to paint a picture of what the future holds for the frozen food industry.

3 key industry trends and their impacts on frozen food warehousing and supply

Consumer appetites are rapidly evolving, presenting food suppliers with new challenges. Foodservice companies would need to increase the efficiency of their operations and make improvements to their warehousing and supply chain processes to meet those industry demands.

The top three key trends in the foodservice industry and their impacts on warehousing and supply chain operations are as follows:

• Diversified consumer preferences

Consumers continue to look for food that fit their lifestyle and nutritional needs, such as gluten-free, non-GMO, and organic food products, among others. In the UK for example, data from market research company Kantar Worldpanel shows that the most popular food category with consumers in 2016 was frozen confections, with total sales exceeding £300 million. That’s a 7 percent increase from the previous year.

Aside from frozen confectionery, another category that saw a rise in demand was frozen fish, with a 1.5 percent increase in sales totalling more than £760 million. Market experts predict that sales in these two food categories will continue to increase in the next five years.

The market for frozen fruits and vegetables also continues to grow. Global Industry Analytics conducted a study wher it notes that the market for frozen produce “is projected to reach 28.2 million tons by 2020.” In the United States, frozen fruits and veggies are considered to be healthy options and key components to nutrient-rich family meals.

“Waistline watchers have found a friend in the numerous low-fat frozen food offerings,” says the Frozen Food Foundation.

The same heightened demand is seen in frozen meals, which provide convenience to consumers with busy, hectic lifestyles.

Along with a greater transparency and traceability about how these kinds of foods are processed and wher/by whom, this would entail a more dynamic approach in terms of network management.

With this demand, companies are expected to source food from several regional suppliers in order to meet the demand for fresher produce, effectively reducing costs and reducing the risk that perishables will spoil in transit. Optimising systems may also be done by moving inventory among stores as opposed to handing it over to and from distribution centres, keeping supermarket shelves stocked and consumers happy.

• Supply chain modernisation

As supply chains strive to meet consumers’ changing appetites for diverse kinds of food, companies continue to find ways to use technology – both hardware and software – to modernise their facilities and processes.

Foodservice companies as well as warehousing and distribution centres are using data management software more, including mobile apps. Everyone across the supply chain is beginning to be connected digitally, allowing companies to take orders, coordinate supply and delivery, track inventory, and forecast demand.

This trend impacts how managers and operators look at their business, making their gazes shift inward to see how things can be modernised to meet industry needs. For instance, addressing the consumer demand for different types of frozen food would involve a more careful planning of warehouse spaces for the accommodation of different temperature zones.

This move toward supply chain modernisation impacts how warehouse operations are done and which materials handling equipment are used to not only improve workplace efficiency but also ensure worker safety.

• Innovative food storage solutions

The different kinds of frozen food in demand today require different kinds of storage. Another industry trend that continues to be seen is the innovation in food storage technologies, warehousing solutions, and refrigerated transportation, which would make companies adopt the tech needed to gain a competitive advantage.

Food producers continue to develop ways to keep food fresher through new freezing and storage techniques including innovative, air-tight packaging.

The introduction of new technology, spurred along by studies on workplace ergonomics, may also prompt many companies to finally overhaul how they operate, especially in terms of materials handling, warehousing, and logistics.

• Stepping up to the frozen food plate with warehousing tech

Technological innovations are being developed and used across different industry sectors–robots are doing surgery and assisting shoppers, drones are starting to deliver packages, smart home speakers are helping people organise their day-to-day lives. Businesses, including companies involved in the frozen food supply chain, are steadily going digital, automating work processes wherver possible and implementing the latest advancements in technology to meet industry demands.

Here are some of the best tech innovations around the world used by warehousing companies.

EDI technology

Electronic Data Interchange or EDI helps companies work with big data. This technology enables the exchange of information between two different computer systems using a shared standard document format.

The integration of EDI into warehouse management systems allows for the seamless flow of information and more efficient collaboration among business partners that may have different systems. EDI makes it faster and easier for companies to manage purchase orders, warehouse shipping orders and stock transfer receipts, as well as collate shipping and inventory advice.

Drone revolution

Drones are being used to capture aerial views of everything from destination weddings to concerts, survey dangerous areas, deliver small packages, shoot movies, and even keep an eye on wildlife. With companies on the road to increase levels of automation on facilities, drones are now doing a bit of warehouse work as well.

DroneScan, a startup based in Africa, developed drones that can scan bar codes in warehouses, which are often stacked to the roof with inventory. With DroneScan’s airborne data collection system, large warehouses are provided with an alternative to traditional, labor-intensive methods requiring large materials handling equipment and hundreds of hours.

The drones are used to scan bar codes on pallets, and the location of each item is then entered into the warehouse management system. The drone technology saves time and eliminates safety risks associated with manual methods of taking inventory in hard-to-reach warehouse areas