TraceGains, a provider of networked compliance, quality, and innovation solutions in the food and beverage (F&B) industry, released a new report, “Old Habits, New Challenges: The Critical Need for Modernization in Food and Beverage Supply Chains,” measuring the readiness and sophistication among suppliers to manage regulatory change and market influences. Based on responses from more than 450 global F&B industry suppliers, the new research shows legacy approaches plague the industry, leaving suppliers inadequately prepared for the next major disruption, regulatory changes, and demand for more sustainable products.

The research comes on the heels of unprecedented regulatory change, creating razor-thin margins for error in product formulation, labeling, and market entry.  TraceGains found that almost half of all suppliers commonly rely on legacy approaches to manage communications with buyers in the food and beverage industry. Beyond daily tasks, this continued reliance on outdated tools hinders their ability to achieve greater efficiency, maintain compliance, and meet evolving environmental, social, and governance (ESG) standards.

• Nearly half (48%) still use manual spreadsheets to manage day-to-day tasks, processes, and document exchanges.
• Over two thirds (71%) admit that outdated processes sometimes or often create issues in their day-to-day work.
• The biggest issue is time consuming tasks (60%), followed by data entry errors (39%) and miscommunication (32%).

This lack of modernization among suppliers is partially due to awareness: one in four are simply unfamiliar with available technology to better manage customer relationships with F&B brands. Recent food safety incidents have heightened scrutiny on regulators, while state governments push for faster federal action. The upcoming FSMA Rule for Traceability (204), effective January 2026, will enforce lot-level traceability for specific food materials in the U.S., while strengthening European ESG regulations are reshaping industry practices across Europe.

"This new research underscores the urgent need for suppliers to update their operations," said Paul Bradley, senior director, product marketing, TraceGains. "With increasing regulatory pressures and shifting consumer demands, widely used, outdated methods are putting companies at risk. Embracing digital solutions should no longer solely be seen as a competitive advantage - it's required for staying ahead and meeting compliance, sustainability, and market demands."

About TraceGains
TraceGains provides a purpose-built marketplace connecting food and beverage (F&B) brands with ingredient and packaging suppliers, powered by a suite of software solutions to manage all business and product-related challenges such as regulatory compliance, nutritional analysis, labeling, new product development and more. Trusted by over 1,200 global clients including half of the top 100 F&B manufacturers, TraceGains is the industry's de facto business hub serving the needs of Product Development (formula/specification management, regulatory global, nutritional calculation), Compliance (supplier, quality and audit management) and ESG. TraceGains represents the largest network of 85,000 supplier locations and a robust database of 550,000 ingredients where brands collaborate on behalf of consumers to develop new products faster while ensuring quality, safety and complianc