Such trends have made people avoid unhealthy and fast food. PepsiCo has the opportunity to reduce its use of GMO ingredients to satisfy these regulations. With EdrawMax Online, you can create over 280 types of diagrams, charts, and visuals. According to a report byStatista, the global annual revenue of the food business in 2021 would be roundabout8,049,240million dollars with a growth rate of3.14%. They are just thinking to label it on the products for public awareness because they do not hesitate from the origin of these products Traditional methods of raising poultry and other animals have been replaced by more intensive methods where animals are fed with a concentrated diet. Its going to focus on the macro-environmental factors impacting the worlds most profitable business. Data from the Australian Bureau of Statistics found that almost a third of employing businesses are having difficulty finding suitable staff. Growing labor costs can be a matter of concern for the restaurant industry. This can include research, collaboration and education along its supply chain (Leahy 2016). The healthy diet and exercising trends are becoming popular among people. People with these lifestyles are more likely to purchase ready-to-eat food products like those of PepsiCo. Besides that, it supports many industries, such as agriculture, with whom around 1 billion people are associated. 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. Here are the Economic factors impacting the food industry: As a general trend, the worlds population is only getting richer. Hence, less competition exists within the industry. The industry will observe financial losses till the war doesnt stop. 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. 2021. This automation has expanded to an extent that robots are now working in hotel kitchens and replacing humans which will lead to reduced laborer cost. Here are the Political factors impacting the food industry: Governments across the world have expansive regulatory, frameworks for every aspect of the food industry. BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. In such cases, customers can easily substitute one brand with another. The ongoing environmental crisis has given rise to awareness about environmental factors. 1168 Words5 Pages. These include: obesity-fighting programs immigration reform DOMT Adjusted1 TTM PE Source: Bloomberg and Pharos Research 21.4 45.9 16.7 9.8 8.5 10.6 10.0 20.0 30.0 40.0 50.0 The political external factors that relate to PepsiCo are as follows: PepsiCo has opportunities for growth and expansion based on the economic stability of developed countries like the United States, as well as the high growth rates of developing economies, such as those in Asia. Technological developments have made the internet available to the masses, and businesses have started to market their products on social media. Pestle analysis of food and beverage industry. The overtime is compensated by one and one-half times their regular pay for each hour. PepsiCos long-term growth trajectory is partly dependent on how the company addresses the major issues identified in this PESTEL/PESTLE analysis. Producers are the farmers who grow food, while manufacturers are the industries that manufacture new products from raw inputs and are involved in packaging. The meat industry is leaving a very deep carbon footprint on the environment. The food and beverage industry has a huge customer base since every human is a consumer, and some are producers. After that, manufacturing and packaging took place in the food and beverage industry. There is immense production of greenhouse gases along with the food, which is necessary to diminish. The economic situation in the UK can impact on the sales of Innocent smoothies and juices due to their premium price and the availability of cheaper substitutes. Trumps administration ignored the endangered species status of Bluefin tuna in the Pacific. Fast food restaurants are adding "healthier options" on their menus as public health policies are pushing for foods with lower sodium and sugar intakes. Food facilities only need to register with FDA and then approval by FDA for each addition. Technological innovations in various business processes. By reducing its carbon footprint, Innocent may assist in addressing the issue of climate change which may create adverse weather conditions and impact on harvests of fruit and vegetables. 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. These factors include issues such as the rulings and guidelines from government bodies on nutritional information on food and drink (Food and Drink Innovation Network 2016). These regulations require food and drink manufacturers to meet the standards provided by the EU for food safety and labelling. Moreover, this enabled more food and beverage-related businesses to establish. 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. This usually happens when consumers switch to an alternative industry. Amazon PESTLE Analysis Example. This element of the PESTEL/PESTLE analysis indicates that PepsiCo must include new technologies as tools to improve business competitiveness. Since many companies are present, there are price wars, and brands spend significantly on R&D to gain a competitive advantage over other brands. But it is contrary to Trumps policies and is engaging agriculturalists to work with the president on expanding trade. Get 22% Off before it's gone >>, https://bizfluent.com/info-7911098-restaurant-pest-analysis.html, https://pestleanalysis.com/pestle-analysis-of-the-food-industry/, https://www.marketingtutor.net/pestle-analysis-of-a-restaurant/, https://freepestelanalysis.com/pestel-pestle-analysis-of-restaurant-industry/, The Complete Guide To Understand IDEF Diagram. To maintain its industry position, Starbucks must continuously monitor this external environment. Everything in desktop + Templates Community, Join 2023 Edraw Special Sales. Gillespie, A. Technology adds beneficial products and services, thus taking the business to a wider domain. This stage benefits the consumers since they have many more options. Besides the direct outlets that provide food and beverages, food and beverages manufacturers and transporters are also considered a part of the food and beverage industry. Hence, all humans are affiliated with the food and beverage industry. It must work on its weaknesses and focus on the strengths to stand strong against the challenging competitors. The Venture Capitalist Bubble and its Concerns: An Analytical Review, PESTLE Analysis Telecommunication Industry United Kingdom (UK), PESTLE Analysis UBER with Porter Five Forces, The Global Business Group: Analysis of Internationalisation in Spain with PEST Analysis Spain, Analysing Byron Bay Competitive Position Using Marketing Strategies, Literature Review on Mergers and Acquisition, Forever 21: PESTLE Analysis of Turkeys Apparel Industry. Well always delight our customers with original content. Health and environmental consciousness, perceived attributes, family structure, and shopping behaviors of the US population are the major drivers generating consumers need to buy green food. Technological factors include new methods of production to include issues such as recycling. Power distance refers to the authority gap between the executives and the employees. Moreover, the input supplied isnt something scarce. The restaurant industry is the most profitable since food is a basic necessity for survival. The new law has come up with a 20% deduction between now and 2025 which has indulged limitations towards business. Top companies in the food and beverage industry are;Coca-Cola,Pepsi,KFC,Hersheys,Amul,Heineken,Nestle,Starbucks,Unilever,Chipotle,Hilton Hotel,Marriott,Burger King,Jollibee,McDonalds, and many others in the hotel and restaurant industry. PEST analysis for beverage companies in China in its general format can be formulated as illustrated in the following table: Political. Thus, strategies and reforms based on the elements of the PESTEL/PESTLE analysis model can boost PepsiCos long-term growth. The following are notable sociocultural external factors relevant to PepsiCos business: Higher health consciousness is a threat to PepsiCo because of concerns about the sugar, salt, and fat content of its products. Plastic deteriorates the environment. This factor of Porters five forces model analyses the competition in the industry. The food and beverage industry is the oldest and most significant industry. Many people from the millennial and generation Z prefer online shopping. The market share of snacks and confectionary items in the food industry in 2021 would be1,399,815million dollars. Automation is the future of the restaurant industry. According to the UNs report, after harvesting, 13.3% of food is wasted, and consumers waste 17% of the total food. RFID Installation: A Project Plan for a Courier Service Company. People now confront self-checkout screens at restaurants which have reduced the cost on laborers. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Since this industry is huge, it provides employment to around 22 million workers. 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