Majority of food and drink companies set to prioritise NPD investment in next 12 months, report finds
Almost 64% of global food and beverage companies are prioritising investment in NPD over the next 12 months to contain costs and stay comptetitive, according to a new industry report from supply chain management software group TraceGains.
The research collected responses from nearly 300 industry professionals working in food safety, supply chain, R&D/innovation, operations, regulatory and quality, across North America, Europe, the Middle East, and the AsiaPacific regions.
More than two thirds of respondents said they plan to modify six or more recipes in the next year, while one third thought they would have to modify between six and 20 – which is 6% more than the predictions shared in TraceGains’ 2022 survey.
The study also suggests F&B companies value outsourcing, with 55% outsourcing more of their manufacturing now compared to three years ago, and around three fourths using some kind of contract manufacturing resource.
Some 36% said contract manufacturers help to get products onto shelves faster, while 27% reported they help to save costs on facilities and equipment and 13% said they help to avoid the problem of labour shortages.
Nearly 90% of supply chain management and food production professionals reported feeling overworked in the study, and amidst growing staff shortages and operational difficulties, more companies are looking to increase usage of contract manufacturers, as well as digital technology which automates manual processes.
Over 70% of respondents said automation tools providing ‘real-time risk flagging’ and making information sharing easier would help them perform better in their roles. Nearly a quarter also said changing their business’s digital infrastructure and boosting headcount would also increase efficiency.
“We’re always taking the industry’s pulse for new insights and our latest survey shows that in 2023 brands are taking proactive measures to remain competitive – whether that’s on the production side or R&D with new recipes,” Senior VP of Marketing & Business Development Gary Iles said in a statement.
“Rather than allow market conditions to overrun their business, more food and beverage brands are taking matters into their own hands. The future looks bright for CPGs that remain focused on putting consumers first by bringing new products to market faster and more cost effectively.”