In today’s booming prepared food industry, more and more companies are entering the market, hoping to claim a share of the sizable opportunity. However, behind this prosperity lie bottlenecks and challenges that cannot be ignored. This article delves into the critical obstacles faced by prepared food companies in their development journey.
1. Difficulty in Breaking Through Product Innovation
One of the main bottlenecks in the development of prepared food companies is the challenge of product innovation. As market competition intensifies, basic frozen food no longer captures consumer interest. Consumers are increasingly concerned about “nutrition” and “health.” Yet, finding ways to genuinely incorporate these concepts into prepared food—while maintaining taste and meeting health standards—remains a significant challenge for companies.
Innovation Challenges: Many companies rely heavily on classic dishes and traditional flavors, with limited investment in up-to-date research and development. As a result, their products tend to lack variety and fail to meet the growing diversity of consumer demands. To truly achieve “convenience that coexists with nutrition and health,” companies need substantial breakthroughs in research, formulas, and processing techniques.
2. High Costs Due to Incomplete Supply Chains
The supply chain for prepared food is relatively complex, requiring high coordination across raw material procurement, production processing, and cold-chain logistics. Currently, many companies face inefficiencies in supply chain management, leading to high operating costs and further squeezing profit margins.
Supply Chain Challenges: Particularly in terms of ingredient quality and cold-chain storage, many small to medium-sized companies lack the management experience and resources to ensure the freshness of prepared foods during storage and transportation. Additionally, recurring pandemic waves and inflation have made supply chains even more challenging, with companies grappling with logistics disruptions and increased costs.
3. Low Brand Recognition and Unclear Market Positioning
As more companies enter the space, there is minimal differentiation among brands. Consumers often struggle to remember specific brands and are more inclined to choose lower-priced options. This dynamic has made some prepared food companies victims of price wars.
Lack of Brand Differentiation: Most prepared food brands lack clear positioning and unique selling points in their marketing efforts, making it easy for them to get lost in the competitive landscape. Building a unique brand image that consumers can recognize and identify with among numerous options has become a crucial task for companies looking to grow.
4. Misalignment Between Policy and Market Demand
Currently, local regulations on food safety standards, environmental requirements, and cold-chain logistics are becoming increasingly strict. While these policies support the standardized development of the industry, they also pose considerable operational pressure for companies. Achieving scalable production, cost reduction, and food safety within stringent standards raises the bar for companies’ management capabilities.
Regulatory Challenges: Many prepared food companies struggle to respond to these policies, often facing issues with process adjustments and equipment upgrades that require significant investment. For smaller companies with limited resources, adapting to rapid policy changes can be challenging, diminishing their competitive advantage.
5. Mismatch Between Consumer Expectations and Product Experience
Consumers have high expectations for prepared food, but the actual experience may leave them disappointed. For example, some prepared foods lose their original flavor after reheating, and nutritional value might also come into question. Such negative feedback has led to declining consumer acceptance of prepared foods, creating challenges for companies facing unstable demand.
User Experience Challenges: Companies need to continuously improve prepared food in terms of freshness, flavor retention, and nutritional content to boost consumer satisfaction. However, this improvement process involves increased investment in technology and research, which can be a substantial burden for most companies.
Conclusion: Breaking Bottlenecks and Embracing the Future
In the competitive prepared food market, standing out requires companies to face these bottlenecks head-on and find unique ways to break through. From product innovation and supply chain management to brand building and market positioning, every aspect requires a clear strategic layout. Only by consistently enhancing product quality, optimizing supply chains, and refining brand image can companies secure a foothold in this highly competitive market.