Global population hit 8 billion in 2022 and is expected to reach 9.8 billion by 2050.
The UN has estimated that food production will need to increase by 70% to feed everyone1 by the middle of the century.
Yet even before the COVID-19 pandemic, the food and beverage industry was facing massive challenges, including:
- Climate change
- More frequent and more severe natural catastrophes
- Water and labor shortages
- Human and livestock pandemics
- Land degradation and deforestation
- Further global urbanization
- Pollution and ocean acidification
In this review, WTW colleagues in the areas of crisis management, supply chain disruption, environmental risk, product recall and business continuity look at what our latest global food and beverage survey tell us about the emerging risk landscape for the food and beverage industry.
The review is based on our webinar of 25 January 2023.
Key themes covered in the report include:
Navigating geopolitical risks
The geopolitical challenges facing the food and beverage industry in 2022 were dominated by the conflict in Ukraine, with the impact felt well beyond those operating in the region.
At the same time, several other geopolitical themes are also impacting the food and beverage industry, underlining the need to understand likely global and local risks.
In this report we look at how the sector can steer a safe course in turbulent times.
Reducing the impact of supply chain disruption
Recent global events, such as port congestion, shortage of shipping containers and haulage operators, along with a lack of infrastructure investment, have severely disrupted supply chains.
Managing these supply chain risks has become a top priority, with just-in-time methods facing increasing scrutiny.
In this report, we look at seven key ways that food and beverage businesses can address supply chain disruption.
Environmental exposures
The increased public and political awareness of the impact businesses can have has resulted in an increase in public expectation and regulatory focus on environmental, social and governance (ESG) standards.
This continues to push environmental issues up the boardroom agenda.
In the report, we provide an overview of the key environmental exposures in the food and beverage industry.
Maximizing the benefits of automation and digitalization
Automation and digitalization continue to revolutionize the food and beverage industry, giving businesses the opportunity to optimize processes through new technologies, leading to increased efficiency, flexibility in production and sustainability.
We outline how food and beverage businesses can maximize the benefits of automation and digitalization within the report.
Managing product recall risks
The claims cost to recall, remove and replace products in the food and beverage industry can be high.
The impact of a recall on a brand’s reputation cannot be underestimated, with social media providing a platform for dissatisfaction to potentially reach an audience of millions within minutes.
We provide overview of how food and beverage businesses can manage product recall risks in this report.
Business continuity and resilience
The food and beverage risk landscape has changed exponentially in the last three or four years.
Extreme weather events are expected to become more commonplace, while rising energy costs, environmental concerns, and geopolitical tensions have become ever-present.
Finally, in this report we expand on how food and beverage businesses can ensure business continuity and resilience.
How WTW can help
We work with clients in the food and beverage sector to help them understand what their potential losses could look like, what scenarios they should be concerned about, and advise on placement strategy.
Our analytics team offers powerful modelling tools and systems to help businesses assess risks and quantify probable losses.
We also run workshops to help clients identify their exposures and tailor cover appropriate to their business.
For further information, please contact our experts listed at the bottom of this page.
Footnote
1 United Nations UN News
Disclosure
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