Back to business as unusual: Navigating the new era in the food industry

Sam Lloyd Date published: May 15, 24

Every industry faces its own challenges and opportunities but the food and beverage sector is one we all depend on for survival, so we experience its pressures and hurdles more than most. 

Our 2024 Food industry audit report provides a deep-dive analysis into the current realities and the forces shifting the landscape for the sector. The findings reveal how concerns have evolved beyond the immediate challenges faced in recent times, highlighting an array of new and re-emerging risks poised to reshape industry dynamics. 

The core theme running throughout the report is an era of "business as unusual", a phrase which captures the essence of the industry's present state. While the top risks have returned to those seen pre-COVID, such as commodity inflation (mentioned by three quarters of businesses) and credit (55%), there are new entrants such as the war in Ukraine and a worrying escalation of climate-related risk. However, within these challenges lies a chance for organizations to innovate, adapt and secure future success by transforming these risks into resilience. 

Here we touch on some of the themes and highlights from the full report. 

What risks are businesses concerned about?

Our research for 2024 indicates that the main concern for food and beverage businesses is financial stability. This is fueled by rising commodity inflation and ongoing worries about credit, currency and liquidity. Organizations must navigate these complexities, with a focus on maintaining financial liquidity to stay competitive, as the food and beverage sector faces relentless demands to manage costs amid fluctuating global prices. 

While concerns related to Brexit and COVID-19 have diminished, new challenges such as geopolitical tensions and environmental pressures are climbing up risk registers, especially due to their impact on global supply chains. The report underscores the vital importance of establishing robust and sustainable supply chains. These must be capable of withstanding a variety of challenges, a necessity that becomes even more pronounced for large organizations with extensive networks. 

In the food and beverage sector, brand image is paramount. Faced with financial and operational hurdles, it's unsurprising that reputational risk is a major concern for businesses in 2024. It's shot up the rankings by five places, driven by factors like unexplained price hikes and competition. Companies must skillfully manage costs to maintain profitability without compromising food safety and quality. Today's consumers are well-informed, and their influence can significantly impact a brand. Our research highlights that companies recognizing the increasing value of brand reputation, transparency and trust will be the ones to thrive in today's consumer-centric market. 

Maintaining food safety and quality amidst challenges 

The food industry is renowned for prioritizing consistent quality and consumer safety, pillars that have upheld its reputation for years. These priorities are critical not only for public health protection but also for safeguarding a brand's reputation and ensuring financial stability for sustained longevity.  

Meeting this challenge requires businesses within the sector to strike a delicate balance between compliance and consumer satisfaction, with food safety and ethical standards at the forefront. However, navigating the changing landscape, which is veering away from predictable paths, raises the question: How do companies continue to achieve this? 

In 2024, businesses are expected to face various obstacles and intense pressure in a volatile geopolitical and economic environment, which will significantly impact profitability, operations and customer relationships.  

Creating a resilient culture 

The 2024 Food industry audit report provides an insightful look at a sector constantly adapting to a dynamic risk landscape. In this era of "business as unusual”, the industry is refocusing on its core principles: safety, quality and trust.  

Achieving success amid these shifts will require food and beverage leaders to prioritize financial stability, product safety, reputation management and sustainability. Our report goes beyond merely outlining industry concerns; it aims to empower businesses with actionable insights and strategic foresight, equipping them with the necessary tools to make informed decisions in a world where change is the only constant.  

The food and beverage industry is embarking on a new journey – resilient, responsive and prepared for the future. Don't miss out. 

Download your free copy of the report now to turn challenges into competitive advantages.