As many as 88 % of European brand manufacturers have experienced problems with sourcing, supply or production in 2024. 73 % passed on rising costs to their retail customers.
Sourcing challenges and geopolitical tensions
Supply chain disruptions, inflationary pressures and labour shortages continue to weigh on the European brand industry. Sourcing challenges, geopolitical tensions and fluctuating costs have become the new norm, according to European brand association AIM’s annual barometer of more than a thousand consumer goods brand manufacturers in 28 countries in Europe – including the United Kingdom.
Only one in every eight FMCG manufacturers have not experienced procurement, supply or production problems in the past year. 58 % faced problems in sourcing essential parts for production, 39 % had to adjust packaging, while 35 % were forced to reduce or stop production as a result and almost as many (34 %) had to adjust the composition of products. One in seven respondents even reported to experience ALL these issues.