Key Takeaways:
- Productivity is the top priority, with 78% of CPG companies ranking it first as they face labor shortages, rising costs, and decreased sales despite higher production volumes.
- Smart manufacturing technologies are delivering measurable results, with 37% of manufacturers already using real-time analytics and 70% reporting productivity as automation’s primary benefit.
- Food-specific automation barriers are being overcome, as manufacturers work to create integrated technology ecosystems rather than implementing isolated solutions.
In the face of ongoing labor shortages, escalating costs, and heightened consumer demands for transparency, productivity has become the defining factor for the food and beverage manufacturing industry heading into 2025. According to a recent study, more than 78% of CPG companies now identify productivity as their primary objective, closely followed by cost reduction and automation initiatives, both at 47%.
Despite an anticipated average gross throughput increase of 23% in 2024, many manufacturers experienced declining sales in 2023. Nearly 70% reported a 12% rise in total costs per product, largely due to inflationary pressures. To improve revenue, compensate for unexpected sales drops, and manage rising costs, manufacturers are actively investing in automation and advanced technologies. A recent survey revealed that 37% of manufacturers have integrated technology and real-time analytics in their operations, with 70% recognizing enhanced productivity as the foremost benefit of automation.
Investing in Digital Maturity
A significant barrier to automation adoption remains the challenge of justifying return on investment. However, progressive manufacturers are tackling this by viewing their initial investments not just in terms of immediate productivity gains, but also as steps toward long-term digital maturity. These early investments lay the groundwork for more sophisticated applications, including AI, predictive analytics, and process optimization.
Investments have expanded into technologies like digital twin solutions, enabling manufacturers to model and optimize operations in real-time without halting production. Additionally, smart manufacturing technologies that integrate AI and IoT sensors are emerging, helping to create processes that can optimize factors such as moisture levels and energy use.
While the food industry has traditionally lagged in adopting collaborative robots (cobots) due to unique challenges—such as stringent sanitation and safety standards—recent advancements are targeting these hurdles. Cobots are now being engineered with enhanced washability and safety features, allowing them to work alongside human operators in food processing environments, managing repetitive tasks more efficiently.
The focus on productivity transcends simply maximizing output; it’s about building a robust foundation for sustainable growth, improved quality, and operational resilience. The most successful food manufacturers aren’t merely adopting system after system; they are orchestrating integrated ecosystems that collectively amplify productivity across multiple operational facets.
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