**UK:** A new TraceGains report reveals 69% of food and beverage companies still rely on manual processes, with 60% stuck implementing tech upgrades. Economic uncertainty and system complexity hinder digital adoption despite 82% acknowledging technology as a top business priority.
TraceGains, a company specialising in compliance, quality, and innovation solutions for the food and beverage (F&B) sector, has recently published a report titled “Digital Drag: The Growing Gap Between Tech Priorities and Implementation in the Food and Beverage Industry.” This report is based on insights from 165 leaders in food safety, quality, and innovation.
The findings indicate a significant discrepancy between the awareness of technological needs and the actual implementation of such technologies in the industry. Nearly two-thirds (62%) of the respondents expressed concern regarding economic uncertainty, yet 60% reported being stalled in the implementation phase of their technological modernisation. A substantial 69% are still dependent on outdated manual processes, attributing this delay to complexity in transitioning to more advanced systems.
The reliance on legacy systems appears to be a considerable obstacle for F&B companies. According to the data, these outdated workflows can hinder daily operations and elevate the risks of errors and regulatory non-compliance, subsequently affecting innovation efforts. Specifically, 69% of F&B brands continue to utilise manual processes such as paper documents, spreadsheets, and various forms of electronic communication, while over half (55%) report that their automation is either minimal or non-existent. Only 6% claim to have “fully integrated” digital solutions, and 60% admit to being stuck in the implementation stage.
Operational management strategies are also under scrutiny, as nearly one-third (29%) of respondents acknowledged that their current methods are inadequate and inefficient. Moreover, 23% cited challenges related to the availability of ingredients and materials, indicating a direct impact on innovation and new product development. Compliance and regulatory issues are pressing concerns, with 24% of respondents expressing readiness to expedite the acquisition of new technologies within 90 days if needed for regulatory compliance.
Despite these pressing issues, a significant 82% of companies recognise that implementing new technology is a major business priority, even surpassing other strategic initiatives. Ease of operation is highlighted as a critical factor for advancement, with firms prioritising improvements in daily operations and the speed of solution deployment over long-term planning.
The report reveals that 57% of respondents value improved process efficiency and the ease and speed of implementation as the principal drivers for technology adoption. Additionally, 52% indicated that immediate operational improvements would be their primary motivation for investing in new technology, far outweighing concerns about return on investment (34%) and overall cost (22%). Furthermore, 60% of respondents noted they would be more inclined to adopt a solution if it could be implemented in weeks rather than months.
However, complexity and implementation challenges represent significant barriers to the adoption of new tools for 40% of survey participants, surpassing cost as the primary concern.
TraceGains positions itself as a transformative force in the food and beverage sector with its global business ecosystem powered by artificial intelligence. The company asserts that it digitises a variety of processes, including compliance, audits, and product development, providing integrated modular solutions aimed at enhancing operational efficiencies. They serve 1,500 global brands, including half of the top 100 food and beverage manufacturers, connecting a vast network of buyers, suppliers, and service providers to ensure safer and compliant products across the supply chain.
Source: Noah Wire Services
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