Food industry progress stalled by outdated tech, warns TraceGains

Food and beverage brands are at risk of falling behind due to outdated technology, according to new research by TraceGains.

The report, Digital Drag: The Growing Gap Between Tech Priorities and Implementation in the Food and Beverage Industry, surveyed 165 senior leaders in food safety, quality and innovation. It reveals that 69 percent of companies still depend on manual systems like spreadsheets, fax and email, despite 82 percent identifying technology adoption as a top business priority.

Modernisation blocked by complexity and delays

The study shows 60 percent of F&B businesses remain “stuck in implementation,” unable to complete their digital transformation due to complexity, resource constraints and outdated consulting models.

Paul Bradley, Senior Director of Product Marketing at TraceGains commented:

The clock is ticking for food and beverage brands plagued by outdated ERP software and slow-moving consulting models that no longer serve the needs of today’s market. Our latest research confirms a shifting mindset from outdated playbooks to modern solutions capable of delivering impact right away and deployed in weeks, not months.”

Legacy workflows increasing risk and inefficiency

According to the report, nearly a third of businesses admit their operational methods are “inadequate and inefficient.”

These legacy processes not only slow down daily tasks but also heighten the risk of regulatory non-compliance. Almost a quarter (24 percent) of leaders said they would fast-track technology purchases if needed to meet regulatory requirements, while 62 percent cited wider economic instability as a key business concern.

Speed and simplicity now top priorities

The research highlights a major shift in buying behaviour: companies are placing a higher value on usability and rapid deployment over traditional ROI metrics.

“The industry is facing continued disruption from multiple directions, and companies need the ability to undertake rapid change,” said Bradley. “Reacting to ingredient, processing and transport costs, managing material availability challenges, responding to regulatory shifts, fending off competitive threats and handling geopolitical factors all demand agility. Companies need to be able to reconfigure supply networks and reformulate and repackage products faster than ever before.”

Fifty-seven percent of leaders cited process efficiency and speed of implementation as their top motivators for adopting new tools, while only 22 percent said cost was the most important factor.

Implementation advice from TraceGains

To help brands overcome implementation paralysis, TraceGains recommends a phased, outcome-driven approach that begins with tangible wins.

“The idea that every technology implementation has to be a multi-year project staffed by external consultants is a holdover from another era,” said Bradley. “Teams today can focus on key areas with a clear return on the tech investment and take progressive steps toward greater integration over time.”

His top advice? Start with supplier and ingredient data.

Centralising and digitising supplier and ingredient data is a great place to start and creates a platform from which teams can grow into greater automation and digital sophistication as it aligns with their strategy and needs.”

TraceGains’ research makes one thing clear: brands that prioritise simplicity and speed in tech adoption will be better positioned to survive, and thrive, in today’s unpredictable market.