Food & Beverage Industry Faces “Digital Drag” as Only 6% Achieve Full Digitalization

With 62% of food safety, quality, and innovation leaders worried about economic uncertainty, pressure is mounting to modernize operations, according to a new survey by TraceGains. Beyond economic concerns, regulatory compliance remains a critical driver for faster digital transformation. Nearly a quarter (24%) of surveyed respondents stated that a mandate requiring new technology would lead them to accelerate its purchase within a 90-day timeframe. 

Despite this sense of urgency, 60% of companies haven’t gotten beyond the implementation phase, stalling completion of their digital transformation journeys. Only 6% have achieved full digitalization, while 69% still rely on manual processes — including paper documents, spreadsheets, fax, and email — to manage day-to-day operations and document exchanges. A significant 29% of food and beverage companies admit that their existing operational management practices are insufficient and unproductive, leading to considerable internal difficulties. 

Complexity slows tech implementation

The report identified perceived complexity and implementation challenges as major hurdles, with 40% of respondents citing these as primary reasons for delayed implementation, surpassing cost considerations.

So it’s not surpassing that, when considering new technology investments, F&B companies are looking for speed and simplicity. They prioritize solutions that can be implemented quickly and deliver immediate operational improvements:

• Process efficiency and ease/speed of implementation are the primary factors influencing technology adoption decisions within the food and beverage industry, according to 57% of respondents.
• Operational improvements are a key driver for technology investment in the food and beverage industry, with 52% of businesses indicating they would likely invest if such improvements were immediate.
• Six in 10 companies are significantly or somewhat more likely to adopt solutions with a faster implementation process, one that takes weeks instead of months.

These priorities outranked traditional considerations like return on investment (34%) and overall cost (22%).

As food and beverage manufacturers navigate economic uncertainty, ingredient availability challenges, and evolving regulatory requirements, closing the gap between digital transformation goals and implementation reality becomes increasingly critical. Solutions offering simplicity, speed of implementation, and immediate operational improvements are most likely to succeed in this environment.