TraceGains released its 2022 State of Supply Chain Disruption Report. They surveyed more than 300 food and beverage brands, measuring the impact of macroeconomic conditions and the pandemic on innovation, product formulation, prices, and availability.
While some respondents continue to innovate, others reduced R&D (36% increased while 35% reduced). Many CPGs have found it necessary to modify recipes or create new formulas altogether. The report predicts greater supplier diversity and enlisting contract manufacturers may help protect against future supply chain disruption.
Higher ingredient prices have affected CPG businesses across the board, with nearly 90% of respondents claiming that these prices shape how they do business. As for those modifying their formulas? 37% have changed more than 20 recipes, and roughly two-thirds (65%) have raised prices in the last two years.
As to the future, 69% of respondents plan to expand their supplier network in the next 24 months, a quarter will reshore their supply chain base, and 41% will eliminate offerings.
For more information, go to TraceGains site here.