Obstacles Facing the Beverage Industry

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The beverage industry is a highly competitive industry. It is constantly progressing and changing. The change is driven by necessity. In order to stay in-tune with customer demand and nutritional trends, the beverage industry has to constantly adapt. Recent trends have driven the beverage industry to provide more healthy and organic products. Alongside consumer demands, there are pressures from other competitors to keep prices low and have new innovative products. On top of this, there is pressure to have environmentally friendly products and use locally grown ingredients. The beverage industry has many challenges responding to consumer demands and operating in such a competitive field.

Using Local Products

Consumers want to see where their ingredients are coming from; they want transparency and reassurance. They want to know that the ingredients are locally sourced and supporting local businesses. However, local products can be more expensive. They can also be more difficult to acquire. In addition, the quality and quantity might not be as consistent as other growers. This can be a challenge for the beverage industry but if they are able to manage it, their consumers will appreciate it.


In order to stay on top of these trends, manufacturers need the right technology to manage design and production of new products. Once developed, beverage manufacturers need to have the tools in place to manage new inventory. Having an online inventory management system allows manufacturers to track the production and stock of a new product. An online inventory management system gives up-to-date information in real-time. This can help identify any gaps or difficulties in the supply chain or production of a new product. Without an online inventory management system, manufacturers in the beverage industry might have difficulty dealing with old inventory stock, new products, and forecasts.

Wholesome Product Lines

The trend of healthy and organic beverages follows alongside with new health and nutrition information. With new information available, people want to be proactive about their health. They are seeking natural, organic, and health conscience choices. This demand requires beverage manufacturers to shift what’s in their drinks.

They are trying to take out heavily processed ingredients and unhealthy additives. They are even trying to change how they colour drinks. Instead of using chemical dyes such as yellow #5, they are trying natural ingredients such as spices. A spice such as turmeric can easily dye drinks a yellow colour.

However, to make these changes it requires a change in suppliers. It is not a seamless shift away from chemicals towards more natural ingredients. It is a big challenge. Manufacturers do not want to compromise quality or price. Therefore, they have the challenge of sourcing applicable ingredients, in the right quantity, and at the right price point.


Not only does the beverage industry need to stay on top of these trends, they need to produce a finished product that is better than their competitors. On top of this, they need to get it to market quicker than their competitors. Smaller manufacturers may have the advantage here to respond faster. They might be able to reach local and regional markets before large manufacturers and beat their competition to the shelves.

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Melanie - Unleashed Software

Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.

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