‘Digital Drag’ impedes food and beverage firms looking at tech modernisation
In the food and beverage industry, Digital Drag: The Growing Gap Between Tech Priorities and Implementation found that although nearly two-thirds (62%) expressed concern about economic uncertainty, 60% of respondents are still stuck in the implementation stage of modernisation, with 69% still using antiquated manual processes and citing complexity (40%) as the reason for the delay.
Produced by TraceGains, a provider of compliance, quality, and innovation solutions for the food and beverage (F&B) industry, the report measures insights from 165 food safety, quality and innovation leaders from across the globe.
“The clock is ticking for food and beverage brands plagued by outdated ERP software and slow-moving consulting models that no longer serve the needs of today’s market,” said Paul Bradley, senior director of product marketing, TraceGains. “Our latest research confirms a shifting mindset from outdated playbooks to modern solutions capable of delivering impact right away and deployed in weeks, not months.”
The pressure to modernise is mounting, but most F&B companies remain mired in legacy systems. These outdated workflows slow down daily operations and increase the risk of errors, regulatory non-compliance, and inefficiencies that can hinder innovation.
- • 69% of F&B brands still rely on manual processes such as paper documents, spreadsheets, fax, and email to manage day-to-day external work and document exchanges.
- Over half (55%) are either not at all or somewhat automated and optimised.
- Just 6% report having “fully integrated” digital solutions, while 60% admit they’re stuck in the implementation phase.
- Nearly one third (29%) acknowledge their current operational management methods are inadequate and inefficient, noting these methods have caused significant internal challenges.
As economic instability continues to pressure margins and slow growth, TraceGains notes companies are struggling to balance urgent modernisation needs with near-term risk mitigation.
- When asked what keeps them up at night, 62% of F&B leaders cited broader economic concerns.
- 23% pointed to ingredient and material availability issues and their impact on innovation and new product development.
- Compliance and regulatory concerns were also cited with nearly a quarter (24%) indicating they would fast track the purchase of new technology within 90 days if it was required to meet a mandate.
- Despite these worries, 82% of companies say implementing new technology remains a top business priority, outpacing other strategic initiatives.
Operational ease makes the difference between moving forward and standing still, with brands ranking the ability to improve daily operations and deploy solutions quickly above long-term planning considerations.
- 57% cited improved process efficiency and ease/speed of implementation as the top factors driving tech adoption decisions.
- 52% stated they would be most likely to invest in new technology if it delivered immediate operational improvements, outranking return on investment (34%) and overall cost (22%).
- 60% indicated they would be significantly or somewhat more likely to adopt a solution if it could be implemented in weeks rather than months.
- For 40% of respondents, perceived complexity and implementation challenges were the biggest blockers to adopting new tools, outweighing even cost.
