A survey of nearly 300 food and beverage professionals released by TraceGains reported that more brands have ramped up the use of contract manufacturing and invested more in new product development in the wake of pandemic-induced supply chain issues.
According to the “2023 Food and Beverage CPG Innovation Report” from the ingredients-marketplace provider, the co-manufacturing model has gained popularity, with 55% of companies surveyed stating they outsource more of their production than compared to three years ago. Almost half of respondents (47%) said they work with up to 10 co-manufacturers, and 75% use at least one co-manufacturer.
Meanwhile, companies are feeling more comfortable ramping up R&D efforts after years of supply-chain challenges, with 64% of survey respondents planning to invest more in that space in the next year.
The survey includes responses from 287 food and beverage leaders at CPG companies in North America, Europe, the Middle East and Africa, Latin America, Australia and southeast Asia, collected in March 2023. TraceGains reports that 65% of brands represented in the survey reported revenues upward of US$50 million.
