Hype or Hot Take...Is the Digital Takeover in Food Here to Stay?
Did you know that just 27% of the UK food industry has embraced digital adoption, and while that figure is growing, it still lags far behind the broader manufacturing average of 50%.
Food is one of the UK’s largest sectors. Yet operationally, it remains one of the least digitised.
So it’s worth asking…
Is tech and food the perfect match waiting to happen...or simply two opposites that don't attract?
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Well what's causing the lag?
There's a few factors to consider really...
Email + spreadsheet culture: Manual processes are still deemed “good enough.”
Relationship-led trading: Phone calls > platforms (historically).
Thin margins: The fight for small margins leaves little brain space to consider change.
Integration headaches: Accounting, stock, logistics rarely talk to each other.
Capital constraints: Energy, labour and inflation have taken priority.
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The pressures for change
Before we understand what tech can do for the food world, let's understand the pressures that will drive the change.
• Costs continually rising
• Retailer compliance increasing
• Sustainability reporting tightening
• Cashflow visibility becoming critical
• Next gen operators expecting better systems
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🔥So is tech hype or hot take?
So we understand the forces at play, but lets explore what's actually going on in the market?
1️⃣ According to the fine people at McKinsey, they have observed some real data from manufacturers who have chosen to get ahead of the curve: Digital supply chain leaders experience:
15–30% reduction in inventory levels
10–20% reduction in logistics costs
30–50% reduction in lost sales
2️⃣ At the same time UK grocers such as Ocado, Sainsbury's and M&S are leading by example. From self scan devices to robotic picking, predictive forecasting and AI planning. They see the future and will demand that their suppliers and partners follow suit.
3️⃣ Around 70% of UK food manufacturers are planning to invest more in digital infrastructure in the next 2-3 years.
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So...all things considered, we think it's here to stay!
Which is helpful for us, otherwise we would soon be out of a job.
Until next time,
The Platter Team