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New Study Finds Food and Beverage Brands Investing More in Outsourcing and New Product Development

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TraceGains “2023 Food and Beverage CPG Innovation Report” Reveals that Despite Feeling Overworked, NPD is on the Rise and Co-Manufacturing Brings Relief

WESTMINSTER, Colo.April 19, 2023 /PRNewswire/ — TraceGains, the world’s only networked ingredients marketplace, today released its “2023 Food and Beverage CPG Innovation Report,” a survey of nearly 300 food and beverage professionals that explores the state of new product development and the shift to outsourcing as a way to contain costs and keep up with evolving consumer preferences.

According to the results, nearly all (86%) professionals responsible for food production and supply chain management feel overworked. Plagued by staffing shortages and operational inefficiencies, more brands are accelerating their use of contract manufacturers (co-mans), investing more in new product development (NPD), embracing digital tools to automate manual processes, and expanding their global footprint to diversify their supplier bases.

“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. “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.”

NPD on the rise
While private and national CPG brands rolled out fewer products in 2020 and 2021, companies are jumpstarting R&D efforts after years of supply chain disruptions. As many brands seek to regain market advantage and meet evolving consumer preferences post-pandemic, TraceGains data confirms the expected rise in NPD.

Co-mans: faster time to market, cost savings
After years of experimenting with co-manufacturers, food and beverage brands have embraced this model of food production following historic global supply chain failures.

Overworked professionals point to tech-enabled solutions
While important competitive strategies, increasing NPD and working with co-mans introduces a host of new challenges. Technology is key to helping F&B brands unlock greater efficiency.

To learn more about how CPG companies can prioritize growth even amid the current macroeconomic environment, visit https://www.tracegains.com/.

Survey Methodology
In March 2023, TraceGains surveyed 287 food and beverage leaders at large CPG companies in North America, EMEA, LATAM, Australia and SE Asia, with 65% of brands reporting revenues upwards of $50M.

About TraceGains
TraceGains is revolutionizing supply chain agility for global consumer goods companies through an innovative Networked Ingredients Marketplace. The ability for businesses to seamlessly connect with partners through a networked marketplace is essential for collaborating to solve today’s unprecedented supply chain challenges. Information about ingredients and supply chain partners flows instantly using intelligence and automation. Our patented PostOnce™ technology allows authorized stakeholders to share and receive vital information, precisely when, where, and how they need to operate efficiently and remain competitive. Through the power of a global network, supply chain agility is achievable.

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