The COVID-19 pandemic has broken the global food supply chain due to heightened regulatory pressure and limited mobility from transportation carriers. Businesses globally are still suffering from the effects of the pandemic to this day. A 2021 survey conducted by HLB Global found that 81% of the food and beverage industry leaders still consider the pandemic the most substantial risk factor for their businesses. In a much larger picture, this has led to equally pressing issues for consumers as food and beverage supply becomes limited.

Foreign Trade Challenges Post-COVID

The biggest threat to foreign trade is logistics. Transportation of food and beverage products was disrupted by varying border controls and air freight restrictions which vary country per country. These, in turn, have made trade more expensive and difficult for exporters as they have lost significant resources to manage regulatory compliance and battle food waste due to the limited shelf life of food and beverage products. Likewise, logistics challenges also threaten importers as they fail to restock on food and beverage products. Consequently, numerous importers cannot sustain consumer demand due to limited transport and delays.

The Driving Forces

The challenges surrounding foreign trade in the food and beverage industry are fueled by three key factors: consumers, technology, and regulation.

The COVID-19 pandemic has made consumers more health-conscious and careful about the products they consume. A survey conducted by the International Food Information Council found that 54 percent of Americans mind the healthfulness of their food and beverage choices. This trend will continue even after the pandemic as consumers continuously seek fresh, additive-free products with traceable origins.

The restrictive nature of the COVID-19 pandemic also strengthened mass digitalization. The mobility and physical interaction challenges brought by the pandemic have transformed digitalization into a necessity rather than a choice. As a response, multiple exporters have transitioned to integrate digital solutions within their internal systems. In the food and beverage industry, these advancements have made functions such as order taking and inventory management more convenient. These technological investments will continue post-COVID as export leaders look into ways to improve efficiency, sustainability, and supply chain visibility.

Food safety concerns were a huge point of concern in foreign trade. With this, regulations surrounding foreign trade within the food and beverage industry have become increasingly stringent to ensure the safety of consumers. Despite the easing COVID-19 situation, regulatory pressure will continue as trade rules and standards are further tightened.

A TRADEblazing Partner

With foreign trade challenges surrounding the food and beverage industry, exporters need to have a system that addresses these pain points for them. Ropaar’s expertise in deploying SAP Global Trade Services helps streamline foreign trade processes by allowing exporters to automate, standardize, centralize, and manage global trade compliance requirements.

In the context of food and beverage operations, SAP Global Trade Services help simplify product traceability and regulatory compliance with comprehensive supply chain management. These enable exporters to implement their business processes with excellent accuracy and precision. Ropaar’s food and beverage domain expertise allow export leaders to:

Ropaar is your expert TRADEblazing partner as it provides best-in-class SAP Global Trade Services that were formulated and honed from years of industry experience.

Leverage Ropaar’s food and beverage expertise today by connecting with us through this link.