Food Manufacture: What’s driving food factory closures – and how to avoid them

It’s a challenging time for industry that has comprised a multi-year period of shocks that have struck one after the other.

This has set about a catalyst for change, in which businesses have had to rethink their strategies in light of ever-changing circumstances, and it’s also resulted in a period of consolidation.

Is this a plant-based problem?

With some well-known plant-based brands entering administration in the last few months, it has left many spectators wondering whether closures are just a ‘plant-based issue’.

According to business management and research consultant firm ChemBizR, there are those who have concluded that the market for plant-based products is simply not as large as some industry analysts predicted.

Despite sustainable choices being a big tick for consumers and a link between plant-based diets and planetary health, the amalgamation of the cost-of-living crisis, concerns around ultra-processed foods, and some products just not meeting expectations when it comes to taste and texture, appears to have tipped the scales the other way.

Alongside market saturation in plant-based, it also hasn’t been easy to make these alternatives competitive on price (compared to traditional meat products) because the cost of making plant-based is still quite high, note the experts at ChemBizR.

“The industry is heavily dependent on private investments, the withdrawal of which might have a significant impact. When the money runs out, closures become almost inevitable.” a spokesperson for the consultancy explained.

To read the full story visit this link.


This story was originally published in Food Manufacture, material provided by Shreya Rajput and Shivani Bisht, Associate Consultants at ChemBizR.

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