How The Food & Drink Manufacturing Landscape Is Changing In 2023

In recent years, a number of major global events have influenced how global manufacturing as a whole has changed. In the UK in particular, the COVID-19 pandemic, Ukraine-Russia war, rising energy costs, cost-of-living crisis, and supply chain issues have reshaped the manufacturing landscape.

The current global economy is being heavily impacted by the Ukraine-Russia war, with an 11% increase on global fuel prices alone, energy prices have been at the forefront of news headlines.

Alongside this, the cost of food and beverage in the UK has risen more than 17% in the year to June 2023, making this a tough year for food manufacturing companies everywhere. The often-unpredictable weather and changing climate has contributed to low crop yields, while global demand for many food items simply cannot be met.

Food and beverage manufacturers are also expected to stay ahead of the ever-changing consumer demands, preferences, and tastes. Consumers are becoming more health-conscious and environmentally aware, making purchasing decisions based on sustainability and carbon footprint, whilst wanting to explore new cuisines and flavours from across the globe.

Manufacturers are under pressure to stay ahead of these changes and invest heavily into research and creating/developing products that align with the consumers’ expectations.

The geopolitical tensions caused by the war, the supply chain disruptions, and the increase in costs, are also forcing manufacturers to find more cost-effective alternative options, without compromising on quality.

The knock-on effects of the global COVID-19 pandemic are still today affecting food and beverage manufacturers all over the world. The pandemic caused catastrophic disruption to supply chains, and caused labour shortages, which have impacted availability of ingredients, delivery schedules and distribution transport networks.

Despite the challenges of 2023, the food and drink sector is optimistic. The sector is prepared to move in a more positive direction and believes that investment in a sustainable and resilient food supply chain is the way to move forward. The UK’s biggest manufacturing sector has seen signs of recovery after a challenging few years and is prepared to evolve as a result of these ongoing issues.