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Ingredient Issues Force Product Changes, Survey Finds

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Ingredient Issues Force Product Changes, Survey Finds

July 25, 2022 by Asia Food Journal

ingredient issues

Courtesy of Monika/Pixabay

A recent survey shows that consumer goods manufacturers are embracing different strategies to combat ingredient issues, with some phasing out their products. 

The survey, which involves over 300 consumer packed goods (CPG) executives by TraceGains, an ingredient information service, showed that supply chain issues are critical. Some ingredients have become too expensive or entirely unavailable, leading some CPG businesses to respond by: 

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  • Modifying formulations. About 37 percent of respondents claimed they changed the formulations of more than 20 of their products, with another 25 percent applying changes for between six and 19 products. 
  • Raising prices. About 65 percent of the respondents reported being forced to raise the prices of their products within the past two years. 
  • Halting production. Almost 50 percent had to phase out production, and 46 percent admitted to failing to address consumer demand. 

In addition to these, some of the companies resorted to various strategies to address the issues, including exploring supplier networks and completely modifying or eliminating product offerings. 

“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.”

Other Topics: Ingredients, Price Increase, Processing, Supply Chain, sustainability, TraceGains

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