Transparency, traceability, and consumer loyalty
The highly competitive market of perishables has today led to manufacturers looking for new ways to placate the consumers’ demand for the highest security standards without letting go of their budgets. High importance is placed nowadays on building trust and ensuring authenticity from the manufacturer’s perspective. From a customer’s point of view, they want as much transparency as possible in their consumables.
Keeping a track
With the increasing awareness among Indian consumers, the need for food safety and proper tracking has taken up center stage. Consumers are concerned about the origin, quality, and manufacturing process of the food that is coming to them and want to be on top of every bit of knowledge that they can have regarding that. This requires manufacturers to implement effective methods that help them remain true to their consumers without compromising on the quality, and without going over budget.
The consumer wants more knowledge
Consumers today want to know everything – what the product is made from, calorie content, allergens if any, where the ingredients came from, and how it was produced and packaged. The more aware consumer goes a step further and also wants to know whether what they are buying has been produced using sustainable means, the product’s carbon footprint, the authenticity of the local ingredients, etc. They are more interested in the bigger picture and want to even know the ethos of the brand they are thinking of associating with.
Traceability trends
The global market for food traceability was valued at $16.8 billion in 2020 and is estimated to reach $ 26.1 billion by 2025, with a CAGR of 9.1% [1]. This market will be entirely driven by the growing demand for ‘safe to consume’ products. The Asia-Pacific market specifically is projected to lead this growth, owing to its high population. It is going to be the fastest-growing market, especially after the COVID outbreak that started in China. The demand for safety and security in consumables is at an all-time high.
Blockchain-powered traceability is now crucial at a global level. While the concept is still in its early stages in India, manufacturers are now looking at the latest technologies to ensure proper food safety norms and end-to-end traceability.
Why do we need traceability?
Having a well-developed traceability system in place allows everyone to have access to all information and ensures full transparency regarding any packaged product. The requisite information from every step of the supply chain is recorded and kept in check for any future reference. It is also a risk management tool in case of any emergency which demands the withdrawal of a particular food item or recall of a food product by the manufacturers or regulators. In the wake of a disease outbreak or a pandemic, a robust traceability system can reduce response time greatly and help all stakeholders in identifying the cause, ingredient, or source, and arrest it at the right time.
While food traceability is a demand from consumers to have a greater check on what they are eating, it also helps businesses recall products from the market in an effective manner. It minimizes wastage and operating costs while increasing overall productivity. Eventually, it also enhances the consumers’ confidence in the brand.
How can SIG help?
SIG is dedicated to designing new-age solutions that can help manufacturers manage and control their entire supply chain and provide consumers with full traceability on any product. SIG’s track-and-trace solution PAC.TRUST[2] uses an integrated system that collects data throughout the product journey, stores it in one comprehensive database, allows for real-time access to data, and attributes each data set to an individual QR code on every package, to create a connected pack.
Manufacturers can also opt for SIG’s innovative Smart Factory solutions, all of which make it possible to optimize the production process and ensure end-to-end visibility.
Using new-age tools to ensure traceability enables the decentralization and security of food data. It is an important step in maintaining health standards in consumables. It creates a transparent environment and builds trust and accountability not only for the consumers but at every level of the supply chain. It brings responsibility to the entire spectrum instead of just one entity. With the consumers gaining more knowledge and awareness, it is pertinent to adopt the latest means for tracking and tracing every product that they consume.
- August 16, 2022