Protein Industry Adapts to Pandemic-Driven Increase in E-Commerce

Preparedness for this shift varies among companies, with about two out of five respondents currently involved in e-commerce saying it did not require them to make any changes to their processing or packaging strategies.

“About half our business is e-commerce, but it has not required any major changes in our operations," according to a vice president of operations at an SME processed meats company.

On the other hand, 55% of surveyed industry stakeholders are still not shipping through e-commerce channels. Of those, 10% are now considering adding e-commerce capabilities in the future.

“E-commerce is a small percentage of our business model, and we’ll only make changes to our line production if demand increases,” a CEO at an industry leading company said.

PMMI Business Intelligence, 2022 Meat, Poultry, Seafood & Alternative Proteins: Automation, Expansion, Sanitation.The rigors of e-commerce distribution have required manufacturers to re-evaluate their packaging priorities, placing greater emphasis on durability. VSP is a particularly attractive option for e-commerce distribution, as it can withstand the rigors of more frequent handling while retaining an aesthetically pleasing packaging presentation.

Sustainability Questions Remain

The waste generated by e-commerce channels has been a topic of discussion among sustainability-minded industry experts, but this concern has not always translated into public opinion.

Despite the significant increase in online grocery shopping during the pandemic and the general concern that consumers have for the sustainability of their products, only 36% of consumers felt that the fresh foods delivered to them from the grocery store had too much packaging, a survey from Deloitte found.

While not a majority, this statistic still signals room for improvement when it comes to reducing packaging material usage.

AI Helps Shape Digital Meat Storefronts

Larger meat and poultry manufacturers are tapping into the power of AI-driven analysis to optimize their digital product presentations. AI programs analyze buying patterns and compare them to how images of products are presented, examining packaging type, product/packaging orientation, size/quantity, and accompanying information such as usage suggestions and instructions.PMMI Business Intelligence, 2022 Meat, Poultry, Seafood & Alternative Proteins: Automation, Expansion, Sanitation.

Tapping into this big-data analysis helps meat and poultry manufacturers present the most desirable product image to consumers in the digital space, increasing buying confidence in the absence of physical handling and inspection.

To continue encouraging online purchases, manufacturers will need to carefully examine the role packaging plays in online sales and buying choices.

B2B E-Commerce Ordering

The pandemic upended consumer buying behaviors, but it also forced many suppliers and retailers to adjust their purchasing strategies.

Some B2B food purveyors noticed that businesses were placing orders through consumer-oriented digital storefronts during high-volume crunches at the height of the pandemic.

Some manufacturers have since instituted dedicated B2B e-commerce pages. While only a small percentage of overall business, these B2B online ordering systems represent another evolution in omnichannel protein distribution. 

Source: PMMI Business Intelligence, 2022 Meat, Poultry, Seafood & Alternative Proteins: Automation, Expansion, Sanitation

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