21 Food & Beverage Supply Chain Stats for 2025

Key Takeaways

Industry growth creates operational complexity – The food and beverage market reached $8.71 trillion in 2025 and will grow to $14.72 trillion by 2034, but this expansion magnifies supply chain challenges across distribution, inventory management, and regulatory compliance
Manual processes create massive inefficiency – Nearly 48% of food suppliers still rely on spreadsheets for daily operations, with 60% reporting time-consuming tasks and 39% experiencing data entry errors that directly impact margins
Technology modernization drives competitive advantage – 65% of suppliers cite regulatory compliance as the top driver for software modernization, while NetSuite implementations enable companies to increase volume 50% while growing inventory-related working capital by only 10%
Supply chain disruptions demand resilience – 73% of companies experienced higher supply chain losses in recent years, while 30% of food produced is lost or wasted annually, representing billions in recoverable value
E-commerce acceleration transforms distribution – The B2B food e-commerce market stands at $297.04 billion in 2025 and will reach $1.15 trillion by 2034 at a 16.2% CAGR, requiring integrated platforms that unify ordering, fulfillment, and customer portals
AI investment becomes table stakes – 50% of food professionals plan to invest in AI in 2025, with 48% prioritizing supply chain tracking systems to address visibility gaps that undermine efficiency
Data-driven decision-making separates leaders from laggards – Organizations cite gathering and leveraging data (47%) and improving production efficiencies (51%) as top digital transformation drivers, yet many lack the integrated ERP infrastructure to execute effectively

Understanding the Fundamentals of the Food Supply Chain Landscape

1. The global food and beverages market reached $8.71 trillion in 2025

The total market size of the global food and beverage industry stands at $8.71 trillion in 2025, reflecting sustained demand across all segments from packaged foods to beverages. This massive scale creates both opportunity and operational complexity, particularly for distributors and manufacturers managing multi-location inventory, compliance across jurisdictions, and customer-specific requirements. Organizations implementing NetSuite ERP gain the backend infrastructure needed to manage this complexity while maintaining agility. Source: Precedence Research

2. The industry will grow to $14.72 trillion by 2034 at 6% annual growth

Market projections indicate the food and beverage sector will reach $14.72 trillion by 2034, representing a 6% compound annual growth rate over the next decade. This expansion demands scalable operations infrastructure that can accommodate volume increases without proportional cost growth. Companies that rely on disconnected systems or manual processes will struggle to capitalize on market growth, while those with integrated ERP automation position themselves to scale efficiently. Source: Precedence Research

North American operations account for 40% of the global food and beverage market in 2024, representing the single largest regional concentration of production, distribution, and consumption. This regional dominance creates unique opportunities for North American suppliers to establish competitive advantages through operational excellence, technology adoption, and supply chain sophistication. Anchor Group's Midwestern expertise in food distribution and manufacturing provides clients with regional knowledge combined with enterprise-grade technology implementation. Source: Towards FnB

4. The food supply chain market grows from $182.81 billion to $359.39 billion

The dedicated food supply chain market represents $182.81 billion in 2025 and will reach $359.39 billion by 2034, growing at a 7.8% CAGR that outpaces overall industry growth. This acceleration reflects increased investment in cold chain infrastructure, traceability systems, blockchain adoption, and AI-powered logistics optimization. Organizations modernizing their supply chain technology capture disproportionate competitive advantages as this market segment expands. Source: Towards FnB

The Manual Process Problem: Why Spreadsheets Cost Millions

5. 48% of food suppliers still rely on manual spreadsheets

A recent industry study revealed that 48% of food and beverage suppliers continue using manual spreadsheets for day-to-day operations, creating bottlenecks in order processing, inventory management, and compliance reporting. This reliance on disconnected systems prevents real-time visibility and forces teams to waste hours reconciling data across platforms. Organizations transitioning to integrated NetSuite solutions eliminate these inefficiencies while gaining automation capabilities that scale with business growth. Source: PR Newswire

6. 60% cite time-consuming tasks as the biggest manual process issue

The primary complaint about manual processes centers on time-consuming tasks that prevent teams from focusing on value-added activities like customer relationship building, strategic sourcing, or process improvement initiatives. When order entry, inventory reconciliation, and compliance documentation consume entire workdays, organizations sacrifice growth opportunities while competitors automate these functions. Source: PR Newswire

7. 39% experience data entry errors from manual workflows

Manual data entry errors affect 39% of suppliers using spreadsheet-based processes, creating downstream issues in inventory accuracy, order fulfillment, financial reporting, and customer satisfaction. These errors often surface during critical moments like month-end close or customer order fulfillment, when correction costs escalate significantly. NetSuite's automated workflows eliminate manual data entry at key integration points while maintaining data integrity across all business processes. Source: PR Newswire

Supply Chain Disruptions and Waste Reduction Opportunities

8. Supply chain disruptions now occur every three years

Research indicates supply chain disruptions occur roughly once every three years in the food and beverage sector, affecting procurement, production, distribution, and customer fulfillment. This frequency demands resilience strategies including supplier diversification, inventory buffer optimization, and real-time visibility into supply chain status. Source: Trinity Logistics

9. 73% of companies experienced higher supply chain losses recently

Nearly three-quarters of food and beverage companies experienced increased supply chain losses within the past two years, driven by factors including transportation delays, quality issues, demand volatility, and coordination failures across distributed operations. Companies implementing advanced inventory management capabilities gain real-time visibility and automated replenishment that reduce loss exposure. Source: Trinity Logistics

10. 30% of food produced is lost or wasted across the supply chain

The Food and Agriculture Organization estimates roughly one-third of food produced for human consumption is lost or wasted globally (about 1.3 billion tonnes per year), representing both environmental impact and economic loss measured in billions annually. This waste occurs at production, processing, distribution, and retail stages, with technology solutions addressing root causes including demand forecasting inaccuracy, inventory optimization failures, and expiration date management gaps. Source: FAO

11. 63% view supply chain robustness as a key operational gap

Nearly two-thirds of food and beverage organizations identify lack of supply chain robustness as a critical gap in their operations, yet many lack the integrated systems needed to build resilience. Modern ERP platforms provide the foundation for supply chain visibility, scenario planning, and rapid response capabilities that transform vulnerability into competitive advantage. Source: The Logic Factory

12. 61% of supply chain leaders cite technology as competitive advantage

Six in ten supply chain leaders recognize technology as a source of competitive advantage, yet adoption rates lag intention due to implementation complexity, integration challenges, and change management requirements. Working with experienced NetSuite implementation partners addresses these barriers while accelerating time-to-value and ensuring successful technology adoption. Source: The Logic Factory

Technology Modernization Drivers and Investment Priorities

13. 65% cite regulatory compliance as the top modernization driver

Regulatory compliance represents the primary motivator for software modernization among 65% of food and beverage suppliers, reflecting increasing complexity in food safety requirements, traceability mandates, and documentation standards. Manual compliance processes create audit risk, delay reporting, and consume resources that could be redirected to value-added activities. NetSuite's compliance capabilities automate documentation, maintain audit trails, and ensure regulatory requirements are embedded in standard business processes. Source: PR Newswire

14. 50% plan to invest in AI technology in 2025

Half of food professionals plan AI investments in 2025, recognizing artificial intelligence applications across demand forecasting, quality control, production optimization, and customer service. Early AI adopters gain competitive advantages through superior prediction accuracy, reduced waste, and operational efficiency that compounds over time. NetSuite AI capabilities integrate machine learning into core business processes without requiring separate systems or specialized data science resources. Source: IFT

15. 48% will invest in supply chain tracking systems

Supply chain tracking represents a 2025 investment priority for 48% of food and beverage organizations, addressing visibility gaps that prevent proactive issue resolution and create customer communication challenges. Real-time tracking integrated with NetSuite WMS provides end-to-end visibility from procurement through final delivery while automating status updates and exception alerts. Source: IFT

16. 44% view evolving consumer behavior as significantly impacting operations

Consumer behavior evolution including sustainability preferences significantly or moderately impacts 44% of supplier operations, requiring transparency capabilities, carbon footprint tracking, and supply chain documentation that manual systems cannot provide efficiently. Modern ERP platforms embed sustainability metrics into standard operations while providing customer-facing transparency through e-commerce portals. Source: PR Newswire

Digital Transformation Investment Priorities

17. 51% target production efficiency improvements through digitalization

Production efficiency represents the top digital transformation driver for 51% of companies, recognizing that manufacturing optimization directly impacts margins, capacity utilization, and competitive positioning. NetSuite manufacturing capabilities including work orders, assembly builds, BOMs, WIP routing, and labor costing provide the foundation for efficiency gains through automation and real-time visibility. Source: IFT

18. 47% seek data-driven decision-making capabilities

Data leverage for decision-making motivates digital transformation for 47% of food and beverage organizations, yet many struggle with disconnected data sources, inconsistent definitions, and limited analytical capabilities. NetSuite SuiteAnalytics provides real-time reporting, custom dashboards, and analytical capabilities without requiring separate business intelligence platforms or data warehouse investments. Source: IFT

19. 45% prioritize cost efficiency gains

Cost efficiency drives digital transformation decisions for 45% of organizations, recognizing that automation reduces labor costs, improves asset utilization, and minimizes waste across operations. Companies implementing NetSuite automation report significant cost reductions through streamlined workflows, reduced manual errors, and optimized inventory levels. Source: IFT

E-Commerce Growth Transforms Distribution Models

20. B2B food e-commerce stands at $297 billion, reaching $1.15 trillion by 2034

The B2B food e-commerce market represents $297.04 billion in 2025 and will reach $1.15 trillion by 2034, growing at a 16.2% CAGR that significantly outpaces overall industry growth. This acceleration reflects buyer preference for digital ordering, self-service account management, and 24/7 availability that traditional sales models cannot provide efficiently. Organizations implementing SuiteCommerce solutions create customer portals that buyers actually enjoy using while integrating seamlessly with backend ERP systems for real-time pricing, inventory, and order management. Source: Globe Newswire

21. NetSuite implementations enable 50% volume growth with only 10% working capital increase

Food and beverage companies implementing NetSuite achieve remarkable efficiency improvements, with Enjoy Life Foods reporting 50% higher volume after implementation while inventory-related working capital increased only 10%. This dramatic improvement in working capital efficiency demonstrates how integrated ERP platforms optimize inventory levels, improve forecasting accuracy, and streamline operations even during rapid growth. Companies working with experienced NetSuite consultants replicate these results through thoughtful implementation strategies aligned with industry best practices. Source: NetSuite

Why Anchor Group for Food & Beverage Supply Chain Transformation

The statistics presented here paint a clear picture: the food and beverage industry stands at an inflection point where technology adoption separates high-performing organizations from those struggling with manual processes, data quality issues, and operational inefficiencies.

Anchor Group brings specialized expertise in food and beverage NetSuite implementations that address the unique challenges of perishability management, regulatory compliance, multi-location inventory, and complex distribution networks. Our team doesn't just configure software—we understand procurement coordination, fulfillment workflows, and the operational realities of companies managing everything from ingredient sourcing to final delivery.

Working with Anchor Group should feel like calling up your neighbor for a hand—familiar, reliable, and no fuss. We're Midwestern born and bred, and we bring that practical, straightforward approach to every implementation. Whether you need inventory automation, custom workflows for food safety compliance, or e-commerce platforms that integrate seamlessly with your ERP, we've solved these challenges dozens of times.

Our clients in wholesale distribution and manufacturing choose us because we nerd out about their industry—understanding everything from landed cost tracking to lot number traceability requirements. We like to earn our keep, and help you earn yours.

You bring the business. We'll bring the magic.

Frequently Asked Questions

What are the biggest supply chain challenges facing food and beverage companies in 2025?

Food and beverage companies face multiple critical challenges including manual processes affecting 48% of suppliers, supply chain disruptions occurring every three years with 73% experiencing higher losses recently, and 30% of food being wasted across the supply chain. Additionally, 63% view supply chain robustness as a key operational gap while struggling to implement technology solutions that would address these vulnerabilities.

How can ERP systems improve food safety and regulatory compliance?

Modern ERP platforms like NetSuite automate compliance documentation, maintain comprehensive audit trails, and embed regulatory requirements directly into business processes. With 65% of food suppliers citing regulatory compliance as their top modernization driver, integrated ERP systems eliminate manual tracking, reduce audit risk, and ensure traceability from ingredient sourcing through final delivery.

Why is working capital efficiency so important in food and beverage operations?

Working capital efficiency directly impacts profitability and growth capacity in the food and beverage sector where inventory represents significant capital investment and perishability creates time pressure. Companies implementing NetSuite demonstrate 50% volume increases while growing inventory-related working capital by only 10%, proving that integrated systems optimize inventory levels without constraining growth.

What role does e-commerce play in modern food distribution?

B2B food e-commerce represents $297 billion in 2025 and will reach $1.15 trillion by 2034 at 16.2% annual growth, fundamentally transforming how buyers research products, place orders, and manage accounts. Organizations implementing customer portals gain competitive advantages through 24/7 availability, self-service capabilities, and seamless integration between e-commerce and backend ERP systems.

How should food and beverage companies prioritize technology investments?

Investment priorities should focus on addressing the 48% of suppliers still using manual spreadsheets, implementing supply chain tracking systems (48% priority), adopting AI capabilities (50% priority), and building data-driven decision-making infrastructure (47% priority). Companies achieving best results work with specialized implementation partners who understand food industry operations and can align technology capabilities with specific business requirements

21 Food & Beverage Supply Chain Statistics Every Operations Leader Should Know in 2025