Appetite for Change: Experts share 8 insights for building more resilient food and drink supply chains

The Food and Drink Federation’s latest State of the Industry report found business confidence has fallen to its lowest level since the invasion of Ukraine in 2022, reaching levels comparable with the beginning of the Covid pandemic.

So, what can businesses do to build greater resilience?

We’ve brought together experts, senior leaders and academics from across food and drink, supply chain, logistics and beyond to explore the challenges facing the sector, and the strategies to insulate against them.

Here are eight key takeaways from our new report:

1. Resilience is reshaping supply chains

After decades of optimising for cost and efficiency, businesses are reconsidering how much flexibility they need, from balancing just-in-time with just-in-case approaches to diversifying suppliers and rethinking where food is produced.

2. Complexity makes visibility critical

The UK imports around 40% of its food. As supply networks become more complex, better data, traceability and supplier relationships will be essential for identifying risks and making faster decisions.

3. Technology is a double-edged sword

AI, automation, predictive analytics and connected systems can strengthen forecasting and visibility. But greater digital dependency also brings cyber risks and could widen the gap between businesses that are leading the charge and those late to the game.

4. People will determine how well businesses adapt

Technology alone cannot build resilience. Businesses will need to invest in skills, risk awareness and more agile ways of working, while strengthening talent pipelines through education partnerships and apprenticeships.

5. Climate and energy resilience will shape future operations

Climate change is already affecting production, water availability, food safety and infrastructure. Meanwhile, energy costs and the transition to lower-carbon operations are creating both challenges and opportunities.

6. Cold chain is critical infrastructure

Around 50% of the UK’s food supply depends on the cold chain, yet around half of UK cold stores are more than 20 years old. With extreme weather and rising temperatures increasing pressure on infrastructure, investment in resilient temperature-controlled networks will become increasingly important.

7. Sustainability is becoming part of resilience

Resource efficiency, emissions reduction and stronger supplier practices can all help businesses manage uncertainty. With Scope 3 emissions for the food and beverage sector being, on average, 45 times higher than Scope 1 and 2, supplier engagement and better-quality data is increasingly important.

8. Resilience cannot be built alone

Producers, manufacturers, logistics providers, retailers and policymakers all have a role to play. Greater collaboration, information sharing and coordination across the supply chain will be essential to building a food system that can better anticipate and respond to disruption.

These are just some of the insights explored in our new Appetite for Change report, featuring perspectives from leaders and experts across the food, logistics, supply chain and academic sectors, including The Cold Chain Federation, Planet Farms, Lincoln Institute for Agri-Food Technology, Sheffield Hallam University’s Advanced Food Innovation Centre, Cranfield School of Management, EcoVadis, the UK Warehousing Association, CHEP UK & Ireland, Flow Skills Online, the Provision Trade Federation and Palletways UK.