Cost crisis forces brand manufacturers to make drastic savings

Only 4 % of brand manufacturers manages to fully pass on cost increases for energy, raw materials, packaging and transport to “reluctant” supermarkets. As aresult, they put a brake on production, investment, recruitment and innovation. 

Sequence of crises

56 % of European brand manufacturers saw energy costs rise by at least 30 % this year, and for a quarter the increase was as much as 60 %. But higher energy tariffs are not the only cost factor brand manufacturers are struggling with: 36 % of companies saw packaging costs rise by more than 30 %, and transport and logistics costs also went up 30 % for many. For 43 % of manufacturers, raw materials became more than 30 % more expensive.