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Why consumers lost trust in the food industry, and how technology can help restoring it

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For the consumers, it seems like the state of food safety would be worse each year. What led to this growing dissatisfaction? And how can food companies restore the trust with the help of technology?

Veröffentlicht in: Lebensmittel
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Why consumers lost trust in the food industry, and how technology can help restoring it

  1. 1. How can we restore trust in the food industry? And how technology can help reaching it
  2. 2. For decades, consumers did not have access to food quality information, or the state of outbreaks and frauds. This was the internal matter of food companies and food safety authorities.
  3. 3. As consumers rarely saw any news on food frauds and outbreaks in the media, they had the (false) assumption that lack of information means everything is OK, and the trusted authorities and food companies are taking care of their safety. Many of them still believe that traceability from farm to retail is widespread.
  4. 4. In the recent years, the development of better quality inspection methods and technologies reveal more contamination cases than earlier. At the same time, emotional headlines in the news, and the ability to share the news quickly through social media resulted that more and more people notice food scandals. For the people it seems like the state of food safety would be worse each year. The common dissatisfaction grows, which puts a growing pressure on food companies and authorities.
  5. 5. This trend can be seen in survey results as well. This one shows that the consumer demand for more food information grew significantly between 2016 and 2018. Now three consumers from four are willing to change to a brand which provides more information. Label Insight and the Food Marketing Institute (FMI) Yes No Yes No Would you switch to a brand that provides more in-depth product information, beyond what’s provided on the physical label?
  6. 6. These tendencies led to the 2018 IFIC Report, which listed food traceability as one of the top five food trends in 2019
  7. 7. Is it true? The most important thing is that you – as a consumer – can’t really know if it’s true. You have to trust the food company that they tell the truth about their policies. But due to the continuous food scandals, people started to question their credibility... Sometimes it is, sometimes it isn’t.Believe me, this food is • Safe • Organic • Non-GM • Made in Italy Usually, food companies state something on the labels about the food they sell.
  8. 8. Current food industry relies on trust And now, this trust is fading… According surveys, 66% of consumers don’t believe the information which is displayed on the food labels.
  9. 9. How can we restore trust again? Food related data can be falsified at these three steps: Data capture Data storage Data processing
  10. 10. Data capture Data storage Data processing BlockchainInternet of Things (IoT) We need technologies which verify these steps Sensors, cameras, smart labels, machine data are trusted data sources. Immutable, distributed ledger technologies can verify that the information is not corrupted.
  11. 11. We are on the verge to generate unimaginable amount of IoT data by each supply chain participant. However, as IoT is an investment, adoption will take time. Today
  12. 12. But blockchain is here, and it can improve supply chain transparency by making each participant accountable for the information they provide. Besides the marketing power of transparency, companies can get deeper insight of their processes by using traceability.
  13. 13. Blockchain can also improve traditional quality assurance methods, like quality inspections, and quality certificiation compliance. Blockchain based traceability technologies can improve food safety.
  14. 14. Test lab Food company Blockchain Anonymous sample Anonymous test result By channeling quality inspections to blockchain, the decentralized process itself verifies the results.
  15. 15. Non-GMO/GE Organic Halal NSF HACCP G.A.P FSSC 22000 GFSI BRC Currently, food quality certification compliance relies on personal audits. A big part is missing: the analysis of constant operational data flows. Food traceability data can fill this gap, and will have an important part in quality certification monitoring.
  16. 16. 6000 Supply chain companies trust us 400 000 Transactions daily 10 000 Users trained We are happy to help you exploring how blockchain based food traceability can help your business. Please reach out to us! Marton Ven - marton.ven@te-food.com