A TikTok video that turned cucumbers into a global superfood and the baked feta pasta craze that emptied supermarket shelves are examples of social media's impact on food supply chains. ANZ's latest Food for Thought report highlights how platforms like TikTok, Instagram, and Snapchat influence consumer choices and transform business responses to changing demands.
Sara McCluskey, ANZ Head of Diversified Industries, stated: “Social media has evolved into a critical driver of consumer behaviour, fundamentally changing the way food, beverage and agribusinesses (FBA) operate." She noted the popularity surge in trends like cucumber salad due to TikTok's influence, which led more Australians to consume fruits and vegetables.
Businesses are now considering viral potential when designing products and marketing strategies. The rise and fall of Prime, promoted by YouTubers Logan Paul and KSI, illustrates the risks associated with short-lived trends. While initially popular enough to be resold at high prices, some retailers faced unsold stock once interest waned.
In Australia, companies leverage social media for promotion. Farmers use Instagram to advocate sustainability and connect with eco-conscious consumers. McCluskey highlighted Dairy Farmers of Australia as an example: "Australian farmers are using platforms like Instagram to promote sustainability and connect with eco-conscious consumers – examples like Dairy Farmers of Australia, which shares videos of cows grazing to build trust and encourage purchases."
The evolving nature of social media platforms suggests their growing influence on FBA supply chains. Businesses must adapt quickly to succeed in this changing environment.
Further insights are available in ANZ’s summer edition of the Food for Thought report.