GROWING IMPORTANCE OF FOOD DISTRIBUTION (2024)

GROWING IMPORTANCE OF FOOD DISTRIBUTION (1)

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Dr Janet Huang GROWING IMPORTANCE OF FOOD DISTRIBUTION (2)

Dr Janet Huang

Published Nov 14, 2017

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Executive Summary

Food Distribution, which involves the transportation, storage and marketing of food to the general population, is an important process that is often undermined. Food distributors have to maintain and ensure food safety, reduce damage of goods and manage timely deliveries, all at the same time. They also face challenges in meeting with the lifespan of the products, refrigeration needs, and multiple points of delivery. The importance of Food Distribution is gaining traction, due to the convenience and popularity of online food-related platforms, growing consumer affluence and the need to address the lifestyle of busy working executives, amongst others. These trends, which are elaborated below, bode well for food distributors globally.

KEY HIGHLIGHTS

  • Technological transformation of Food Distribution. The advent of online food-related platforms has provided consumers with an alternative to conventional supermarkets as well as access to a wider selection of goods. While online food-related platforms are not substitutes for conventional supermarkets, consumers enjoy the conveniences that come with it. For instance, the comfort of shopping from home and having the goods delivered to the doorstep, which meets the lifestyle of busy working executives today. In addition, food manufacturers and distributors are leveraging these platforms to market and sell their products, either through collaborating with e-commerce players, or by incorporating an online store within their website. Food distributors, therefore, stand to benefit from maximising the use of such technology. These benefits include, but are not limited to accessing a larger consumer base, and new potential markets worldwide.
  • Rising affluence and increased spending on food. Consumers tend to spend more on food when income increases. Such spending indicates changes in buying attitudes, which, in turn, affects the demand for food - in particular, the quantity purchased, quality sought and varieties offered. Furthermore, a change in buying attitudes is also reflected in the dining habits of consumers. Rising affluence indicates more expendable income to eat out. This, coupled with the willingness to spend, propels the demand for food from the retail and hospitality markets, and thus, the need for more Food Distribution services.
  • The need to feed 10 billion people by 2050. Over the last decade, the global population has increased significantly, at an estimated 80 million persons per year. As there will be more people to feed, there is a need for further food supply, particularly in the world’s most densely inhabited countries like China and India, where population is expected to reach 1.4 billion and 1.7 billion, respectively, by 2050. The impending growth in population numbers requires food to be distributed further globally, leading to the need for extended food supply and distribution networks. For food distributors, the increased need for distribution networks signals opportunities (and a challenge) to serve a larger global market.
  • Growing food demands from the travel industry. Globalisation has facilitated open skies agreements, and hence, the growth in numbers of people travelling. As a result, airlines are increasing their inflight catering services to meet this demand, which, in turn, allows food distributors the opportunity to support them. Likewise, through the interconnectedness of trade, sea travel has also been made more accessible. Increasing trade between countries has also resulted in the rise of the number of vessels at sea, providing food distributors the opportunity to supply provisions to cruise ships, passenger and commercial vessels.

Ravi S. Sharma

Educator & Research Advocate

6y

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Have you thought about blockchainning for food security?

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GROWING IMPORTANCE OF FOOD DISTRIBUTION (2024)

FAQs

Why is food distribution important? ›

Food distributors provide a bridge between the people who produce food and those who sell it. They gather products from farmers and food processors, store them in warehouses, and then transport them to retail and wholesale buyers.

How can we improve food distribution? ›

Efficient Distribution and Logistics

Distributors can enhance the supply chain by streamlining logistics and transportation processes. Leveraging data analytics for demand forecasting, optimising routes, and minimising delivery times can lead to reduced costs and improved product availability.

How important is food for growth? ›

Food is one of the basic necessities of life. Food contains nutrients—substances essential for the growth, repair, and maintenance of body tissues and for the regulation of vital processes. Nutrients provide the energy our bodies need to function. The energy in food is measured in units called calories.

What is an example of food distribution? ›

Companies, programs, and organizations are involved in collecting food products from producers, storing them in warehousing facilities, and distributing them to restaurants, grocery stores, cafeterias, and government aid programs such as Feeding America, food banks, and an emergency food assistance program.

Why is distribution so important? ›

Distribution channels play a vital role in business by ensuring efficient product distribution, expanding market reach, and enhancing customer satisfaction. They facilitate the movement of goods from manufacturers to consumers, handling tasks such as warehousing, transportation, and inventory management.

What is distribution and why is it important? ›

Distribution is a management system within logistics that is focused on order fulfillment throughout distribution channels. A distribution channel is the chain of agents and entities that a product or service moves through on its way from its point of origin to a consumer.

What affects food distribution? ›

Projected rising temperatures, changing weather patterns, and increases in the frequency of extreme events may affect the food distribution system at the local, national, and global scales.

How does food distribution affect the environment? ›

Food needs to be grown and processed, transported, distributed, prepared, consumed, and sometimes disposed of. Each of these steps creates greenhouse gases that trap the sun's heat and contribute to climate change. About a third of all human-caused greenhouse gas emissions is linked to food.

How does food distribution work? ›

In general, food distribution is composed of a variety of companies, organizations and programs that collect food from producers, store it in warehouses, and then distribute the food to manufacturers, grocery stores, restaurants, cafeterias, government aid programs and more.

How does food affect growth and development? ›

Good eating habits strengthen bones and support muscle function. In addition, good eating habits keep the teeth, skin, and eyes healthy. Furthermore, good nutritional eating habits in early childhood can have a significant impact on the development of language.

What are the 10 importances of food? ›

10 Reasons Good Nutrition is So Important
  • Good Nutrition Improves Well-Being. ...
  • It's Expensive To Be Unhealthy. ...
  • Helps You Manage A Healthy Weight. ...
  • Maintains Your Immune System. ...
  • Delays the Effects Of Aging. ...
  • Gives You Energy. ...
  • Reduces The Risk of Chronic Disease. ...
  • Healthy Eating Positively Affects Your Mood.

Why is food distribution a problem? ›

For example, poor storage can lead to infestations or mold that ruin food before it can be eaten. Or, a country might produce or be able to import enough food for its population but shocks like climate disasters or political upheaval prevent the equitable distribution of food to vulnerable or isolated communities.

What is general food distribution? ›

General food distribution (GFD) is the term used for food rations that are given out to selected households affected by an emergency. The food ration consists of a number of items (the minimum three are cereal, pulses and oil, but items such as salt, sugar, fresh vegetables, canned meat or fish can be added).

What is the distribution stage of food? ›

Distribution

Once packed and ready, the food products are shipped from the packaging plant to their final destinations. Typically, these destinations include markets; however, food can also be transported to other segments of the food industry.

What is distribution in the food industry? ›

Food distribution is the process of getting food from producers and manufacturers to consumers. It's essential to clearly understand the role of a distributor so that you can strike the right partnership and unlock growth for your product.

What is distribution in the food system? ›

Food distribution involves a series of post-harvest activities including the processing, transportation, storage, packaging and marketing of food as well as activities related to household purchasing power, traditions of food use (including child feeding practices), food exchanges and gift giving and public food ...

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