While micro environment factors such as competition norms impact the competitive advantage of the firm. After that, manufacturing and packaging took place in the food and beverage industry. The meat industry is leaving a very deep carbon footprint on the environment. The restaurant industry is thriving! It has reduced the sale of food and beverage companies. According to an estimate, the volume of the food market would be around 2,782,974 m kg by the end of 2025. It is important for International brands to know that there is no specific citizenship required to own an American company. Similarly, more fish are being grown in a small space which is unhygienic and questionable. Other technological factors include social media which links Innocent to its customers (Innocent 2017). The beverage industry contains two main categories, and each of them forecasts to reach a positive number in market value: Non-alcoholic segment : USD 1.60 trillion by 2025 (according to Intrado GlobalNewswire, 2020) Alcoholic segment : USD 647.7 billion in 2023 (according to Grand view research, 2017) 'PESTEL-PESTLE Analysis of Restaurant Industry | Free PESTEL Analysis', PESTLE Analysis, [online]. These include: obesity-fighting programs immigration reform The food industry must recognize and appreciate the tendency of their consumers to shift to a plant-based diet owing to the damage the meat industry might contribute to the environment. Socio-cultural factors which impact on Innocent includes changing consumer tastes, which helped Innocent become successful due to its ethos of natural ingredients and premium price (Britvic 2016). Lets proceed further and conduct a food and beverage industry analysis to see the food and beverage industrys life cycle, the industrys competitiveness, and what external and internal factors impact the industrys operations. Innocent was also able to address a growing interest amongst consumers regarding health concerns and the willingness of consumers to pay a premium price for this (Britvic 2016). The uncertainty around Brexit has led to a weakening of the pound making raw ingredients more expensive to import and this may also impact on the cost of sales, if food prices increase. Data from the Australian Bureau of Statistics found that almost a third of employing businesses are having difficulty finding suitable staff. Available online at www.sciencedirect.com Procedia Social and Behavioral Sciences 24 (2011) 188"197 7 th International Strategic Management Conference The Firms Survival and Competition through Global Expansion: A Case Study from Food Industry in FMCG Sector Yasemin Oraman a* , M.Omer Azabagaoglu a , I.Hakki Inan a a Namik KemalUniversity, Tekirdag 59030, Turkey Abstract This . 1 . The Essay Writing ExpertsUK Essay Experts. Some food businesses like McDonalds have adopted the tech automation tools like cooking robots, self-ordering, payment systems, and online orders and delivery systems. If you want to know more about how to make a PESTEL analysis diagram in EdrawMax Online, just check this PESTEL guide, it may help you to create diagrams without efforts. Factors including innovation, automation, technical awareness, and more influence the production, distribution, and communication operations of a business come under the technical parameters. The UK legal context may face substantial changes due to Brexit and this may include the amendment, abolition or retention of EU legislation relating to employment rights and health and safety. Currently, around 15 million cafes, restaurants, and pubs all over the globe contribute significantly to the industrys growth. The company needs to implement the data gathered by PESTEL to gain the maximum benefit. After constructing the industry life cycle and assessing the competition in the food and beverage industry, lets conduct an environmental analysis of the food and beverage industry. On the other hand, climate change poses a threat to PepsiCos supply chain. The moderate rate of regulatory change gives opportunity for PepsiCo to grow with the expectation that its current strategic decisions will satisfy regulatory requirements in the long term. 12 trillion dollars yet spent on the food industry, are expected to increase up to 16 trillion dollars in the upcoming years. Political Factors: Impacting Telecom Industry UK It will lead to less profit for the owners. The PESTLE analysis (Political, Economic, Socio-Cultural, Technological, Legal, Environmental) will analyse the macro framework within which Innocent operates (Johnson et al 2014; Angwin et al 2011). FSMA ( Food Safety and Modernization Act ) has been passed to shift the focus from the treatment of foodborne diseases towards its prevention. The five mandatory components for the label include nutritional information, list of ingredients, net contents of the package, contact information, and the statement of identity. The employees below 20 years are to be paid above 4.25 dollars per hour in the initial three months of employment. This has increased the risk of food-borne illnesses. The usage of automation technology and robots would make food preparation efficient and reduce labor costs. PEST analysis for beverage companies in China in its general format can be formulated as illustrated in the following table: Political. Available at: https://www.marketingtutor.net/pestle-analysis-of-a-restaurant/ (Accessed 26 June 2021). Since the food and beverage industry is one of the biggest industries, we have decided to conduct a Food and Beverage Industry Analysis in todays article. Yuksel, I. Political Factors. Arabian Food Ind. The pandemic of covid-19, masking, and social distancing have amplified the growth of e-commerce and online businesses. Available at: https://bizfluent.com/info-7911098-restaurant-pest-analysis.html (Accessed 26 June 2021). PESTEL is the most vital factor affecting the expansion of country. The laborers hired for the farm face many difficulties in their daily life. As a result, the food and beverage industry generates high revenue. 'Restaurant PESTLE Analysis', PESTLE Analysis, [online]. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Trends affect the food industry. The food and beverage industry is one of the biggest industries since it has a broad customer base. The growing population and its increasing demand, sensitivity towards transgender employees are some other social factors directly or indirectly influencing the restaurant industry. A need to address this wasted food is to bring back the money into circulation. The following are some of the key points that PepsiCo . This is true for our PEST analysis example for the food industry. United States Small Business Administration (2015). The food and beverage industry has a huge customer base since every human is a consumer, and some are producers. PESTEL analysis of the macro-environment. The management of a company uses PESTEL analysis to weigh the factors that can hinder or promote the industry's growth. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. The PESTEL/PESTLE analysis model is a strategic management tool that identifies various external factors relevant to firms, based on the conditions of their remote or macro-environment. PESTLE Analysis: Telecom Industry UK To conduct the environmental analysis, we will conduct the SWOT and the PESTLE analysis of the food and beverage industry. In other words, the hospitality industry and food & beverage industry are complimenting each other. By studying these factors, companies can also determine a potential market. The SWOT analysis is used by business analysts to analyze the internal and external factors affecting an organizations operations. That, means that individuals in the lower, middle, and upper classes all. For instance, they have to clarify the amount of oil and salt theyre using, the right temperature, rightly grilled, food storage system, expiration date, cleaning, and food transportation. Policies have been made which will reduce meat production and consumption. They are worried about being watched by NSA but do not express the fear as they are unexpressive. Lets identify some external factors impacting the food and beverage industry. No plagiarism, guaranteed! Bidens administration made sure that government policies reflect consumers needs. They are- traditions, cultural values & beliefs, population growth, age distribution, career attitude, and more. The introduction of the latest software to manage the accounts of companies can lead to fewer errors and more profit. PepsiCo must develop strategies that enhance its abilities to withstand the external factors in its remote or macro-environment. Understanding these forces is critical for business managers to take effective decisions. There are massive PESTEL templates and symbols to choose from, and creating a PESTEL analysis diagram could be really simple. Technological. PepsiCo Five Forces Analysis (Porters Model), PepsiCos Vision Statement & Mission Statement Analysis, PepsiCos Generic and Intensive Growth Strategies, PepsiCos Organizational Culture Characteristics: An Analysis, PepsiCos Organizational Structure Analysis, PepsiCos Operations Management, 10 Decisions, Productivity, Wendys PESTEL/PESTLE Analysis & Recommendations, Burger King PESTEL/PESTLE Analysis & Recommendations, Harley-Davidson PESTEL/PESTLE Analysis & Recommendations, Home Depot PESTEL/PESTLE Analysis & Recommendations, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Whole Foods Market PESTEL/PESTLE Analysis & Recommendations, Ford Motor Company PESTEL/PESTLE Analysis, Sony Corporations PESTEL/PESTLE Analysis & Recommendations, Microsoft Corporations PESTEL/PESTLE Analysis & Recommendations, Toyota PESTEL/PESTLE Analysis & Recommendations, PepsiCo Announces Strategic Investments to Drive Growth, Political stability in major economies (opportunity), Improved intergovernmental cooperation (opportunity), Government initiatives against carbonated drinks (threat), Economic stability of most major markets (opportunity), Rapid growth of developing economies (opportunity), Higher health consciousness (threat & opportunity), More discriminating attitudes about product quality (opportunity), Moderate R&D investments in the food and beverage industry (opportunity), Improving knowledge management systems (opportunity), Increasing automation in business (opportunity), High focus on business sustainability (opportunity), More complex expectations and standards on waste disposal (opportunity), Regulation on GMO ingredients (opportunity), Health and product safety regulations (opportunity), Moderate rate of regulatory change (opportunity), Product innovation to address concerns on quality and health effects. Technological innovations in various business processes. Besides the safety standards, maintaining minimum daily wages and the welfare of the employees are also some vital aspects that the restaurant industry must consider if they want to grow steadily in any given environment. Such software is beneficial, especially, for start-ups helping them target the potential market. Without a doubt, this makes the food industry one of, the most tightly-regulated industries of all. There has been increased automation in the food industry. New investments are preferred at a local level. In the maturity stage, the industry is at its peak since it maximizes its market share. Also, no specific certification is required to distribute food in the USA. The technological external factors significant to PepsiCo are as follows: Based on moderate research and development (R&D) investments in the industry, PepsiCo can boost its own R&D investments to improve its competency in this business aspect. There are broadly two categories, fast food, and casual dining. Background of Restaurant Industry France takes pride in opening the first restaurant ever in the world. Food wastage has been minimized through it. Adamkasi., 2021. Free Summary Report This report contains the table contents only. Available at: https://pestleanalysis.com/pestle-analysis-of-the-food-industry/ (Accessed 26 June 2021). They have created awareness videos that guide one about reducing food wastage, eventually saving money. Plastic deteriorates the environment. The US food Industry shall keenly follow the guidance reducing maintenance cost, disposal costs, toxicities, transportation charges to further enhance profitability. Joe Bidens administration emphasized the importance of Bidens transition team in maintaining infrastructure so that the country feed will be continued. Thats why food and beverage businesses should research their customers preferences. This emission is expected to increase up to 30-40% by 2050 due to the rising population. Governments are external factors that impose requirements on PepsiCo. have more money to spend on luxuries including restaurant food. The US has started growing commodities from genetically modified seeds. He announced billions of dollars of cuts to USDA and FDA which was alarming to food safety. PepsiCos long-term growth trajectory is partly dependent on how the company addresses the major issues identified in this PESTEL/PESTLE analysis. They must focus on materializing the long-term benefits of this shift. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Literature Review Consumers are shifting towards green food consumption and this behavior has increased after the pandemic breakout of Covid-19. In the US, pandemic prepared certification is being provided by AIB International which ensures employees and the customers that the particular company is establishing best practices in this pandemic. This element of the PESTEL/PESTLE analysis considers the effects of governmental action on companies remote or macro-environment. Its because the meat farmers are expanding their farms in order to feed their animals. Our main markets are Russia, Eastern Europe and The Middle East. Similarly, fluctuating taxes on raw materials and ingredients can result in high prices of products. Labor unions and government legislators are considering increasing the minimum wage rate. PepsiCo's PESTEL/PESTLE Analysis - Recommendations. The US professionals focus on what they can see right in front of them and not on the long-term goals. Political factors. This industry operates round the clock. Nowadays, many people have become cautious about their diet and they avoid salty, spicy, oily, and sugary based food. Its going to focus on the macro-environmental factors impacting the worlds most profitable business. The shakeout stage in the food and beverage industry arrived in the 20th century when big brands in the food and beverage industry, such as Nestle and Pepsi, arrived and established themselves. This factor analyses the suppliers power to dictate prices in an industry. The wasted food doesnt only impact the food industry but also the household budgets. There is immense production of greenhouse gases along with the food, which is necessary to diminish. The article explores each force in-depth and tries to decipher its impact on the business already operating within the food industry or aspiring to internationalize their company within the USA. These regulations require food and drink manufacturers to meet the standards provided by the EU for food safety and labelling. The farmers are the food producers and they supply it to the food processing factories, vegetable markets, andhotels, and restaurants. Therefore, food and beverage businesses should know the beliefs and values of the target market. The UK has signed up to the Paris Agreement and this will impact on Innocent's organisation in terms of how they address their impact on climate change in areas such as production. Thanks to the peoples inclination towards experimenting with food and their ever-changing preferences. The last and most important segment of the food and beverage industry is the consumers, who control the demand in the industry. Estimated value of global store-based and e-commerce sales in the edible grocery category in 2021 and 2026 (in . Purchase the PEST Analysis: The Philippines Country Profile as part of our Commodities research for April 2022. . PESTEL analysis restaurant industry suggests that growing awareness about organic food is a social factor. 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The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as . A food business should follow these trends and launch its online platform in order to attract more people. People focus on the nutritional quality of food. Growing labor costs can be a matter of concern for the restaurant industry. Some of the food and beverage industrys most important components are producers, manufacturers, retailers, and consumers. If another country wants to export its food products to the US so it must fulfill the labeling requirements. The effective tax rate total range has deteriorated. As a result, some well-established companies that hold large market shares emerged. This PESTEL/PESTLE analysis indicates that the company has many opportunities and a number of threats regarding its growth and international expansion. 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