Rebuilding economic resilience in the UK food supply chain
IGD (Institute of Grocery Distribution)
Together we are working to drive change that makes a tangible difference for Society, Business and the Individual.
Next week we will publish our latest Viewpoint Special report: Rebuilding economic resilience in the UK food supply chain. The report will highlight what’s happening, the key issues impacting the supply chain and the emerging threats.
Food supply chain under pressure
Food inflation in the UK continues to outstrip ‘overall’ inflation and was recorded at 14.8% for July. This is a significant fall from the peak of 19.1% in March 2023 but remains very high by historical standards.
Food and drink price inflation remains above general inflation, which means that food and drink is still becoming more expensive relative to other items.
IGD research shows that consumers have been reporting weaker availability in food retail for some time . Trust in the ability of the industry to keep goods in stock has also been impacted.
Reduced on-shelf availability impacts choice for consumers and therefore quality of service. The combination of weaker availability and high and persistent food inflation points to a faltering supply chain, undermining the reputation of the food and consumer goods industry.
What are the issues?
The UK food and grocery supply chain has come under unprecedented pressure over recent years. Whilst the system has proven to be impressively resilient to some shocks, other shocks have had a greater impact.
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The severe impacts of the war in Ukraine have exposed pre-existing fragility across the system in the following areas:
Emerging threats
Some factors that have disrupted the food and drink supply chain may be easing, whilst others are likely to be more persistent.
Several of the following disruptors are already emerging and may manifest over the next 24 months:
We will be exploring these issues in depth in our forthcoming Viewpoint Special report: Rebuilding economic resilience in the UK food supply chain, available to download for free from 7 September.