Managing Seasonal Demand In The Food Industry

Updated in 2025

Seasonal variations in consumer demand and ingredient supply are a major issue facing many food and beverage manufacturers. Forecasting pressures up and down the supply chain are an everyday part of business. In fact, recent data shows UK manufacturers increased purchase orders by 103% in Q2 2025 and allowed excess stock to rise by 206%, largely to hedge against longer lead times and seasonal volatility. However, accurately forecasting can be difficult if customer orders and the performance of your supply chain are subject to seasonality

Table of contents:

1. How can food manufacturers manage seasonality?
2. Strategies for managing seasonal demand in the food industry
3. Inventory management Software for managing seasonal demand
4. Frequently asked questions

The pressures of seasonality

Businesses are generally poorly equipped to manage the consequences of seasonal instability. Seasonal lows are naturally difficult times for a business to weather - lower revenue measures up poorly against consistent fixed expenses. Businesses often struggle to meet demand at the height of a product’s season, particularly if they cannot temporarily reduce production of out of season products.  The effects of seasonal demand typically ripple back through the entire production chain, creating supply pressures for a wide range of inputs and raising ordering costs.

Dealing with peak demand

The most significant challenge during a period of peak demand is securing supply. Competition between businesses can result in ordering costs escalating steeply during this time. By entering into medium or long-term procurement agreements, your business could secure enough supply to trade through a period of seasonal demand at current ordering cost levels. If your business is unable to secure enough supply to meet customer expectations, proactive communication with customers is crucial. If you are a manufacturer, peak demand can also pose capacity challenges. Rather, consider flexible solutions such as running second or third shifts or (if possible) producing some buffer stock in the weeks or months leading up to peak demand.

Dealing with seasonal lows

As you approach the off season, your business should focus on reducing unneeded inventory. While it may be prudent to carry a very small level of winter stock during the summer season, holding a significant amount of off season stock will unnecessarily increase inventory carrying costs. Food manufacturers generally retain relatively little stock between seasons as most food products have a relatively limited shelf life, so this should not be a major issue for most food producers.

Forecasting and data analysis

• Analyse historical data: Review past sales to identify seasonal patterns, popular products, and order volumes. This helps anticipate demand and plan production accordingly.
• Incorporate external factors: Track weather, holidays, and local events to refine forecasts. These variables often influence consumer behaviour and purchasing trends.
• Use technology: Leverage machine learning tools for time-series forecasting and social listening platforms to better understand consumer sentiment and demand shifts.

Inventory and supply chain management

• Optimise inventory: Use historical usage trends to predict needs, maintain safety stock for high-demand items, and apply lean practices to avoid overstocking.
• Ensure supplier flexibility: Work with suppliers who can adjust order volumes quickly. This agility helps manage fluctuating seasonal needs without overcommitting.
• Diversify sourcing: Avoid relying on a single supplier. Building relationships with multiple sources reduces risk during seasonal disruptions.

 Menu and Product Diversification

• Adjust menus: Introduce seasonal specials using fresh, in-season ingredients. This not only reduces costs but also creates excitement among customers.
• Focus on core items: During slower months, streamline operations by focusing on best-selling products to minimise waste and complexity.
• Introduce new products: Develop seasonal product lines to attract new customer segments and maintain revenue throughout the year.

Staffing and Operational Efficiency

• Adjust staffing: Hire temporary staff during peak periods to meet increased demand without long-term overheads.
• Cross-train employees: Equip staff to handle multiple roles during quieter periods to improve flexibility and efficiency.
• Optimise warehouse layout: Reorganise storage to make high-demand items more accessible, speeding up order fulfilment during busy seasons.

Financial Management

• Manage cash flow: Use peak seasons to build reserves for quieter months. Invest in product development and marketing to maintain momentum year-round.

To manage seasonal demand effectively, food manufactures need real-time visibility and control over their inventory. Unleashed inventory management software features batch tracking, expiry date management, live stock updated and much more allowing manufactures to optimise their purchasing decisions, reduce waste and respond quickly to seasonal fluctuation. 

Explore how Unleashed can help you manage seasonal demand – start your 14-day free trial today.