Survey: Ingredient Issues Force Product Changes

July 21, 2022
Consumer goods manufacturers are adopting a variety of strategies to deal with ingredient issues, up to and including discontinuing some products entirely.

Consumer goods manufacturers are adopting a variety of strategies to deal with ingredient issues, up to and including discontinuing some products entirely, according to a recent survey.

The survey of more than 300 CPG executives by TraceGains, an ingredient information service, showed that supply chain issues are overwhelmingly top-of-mind. Ingredients that either are unavailable or have become too expensive have forced CPG companies into various responses:

  • 37% said they had modified formulations for 20 or more of their products. Another 25% did modifications for between six and 19.
  • 65% said they have been forced to raise prices in the last two years.
  • Nearly 50% completely halted production on some products, and another 46% confessed they have not been able to keep up with consumer demand.

Respondents are following a variety of strategies to deal with the situation, including expanding supplier networks (69%) and changing or eliminating product offerings (41%).

"As consumers, we feel the pain of supply chain issues each time we walk out of a grocery store," said TraceGains CEO Gary Nowacki. "This survey sheds light on the problem directly from a CPG brand's perspective, and lets other food and beverage companies know they're not alone in this fight.”

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