Research from TraceGains flags that “outdated tech” is holding back the F&B industry, which could be at risk of falling behind. Although the pressure to modernize is mounting, most F&B companies remain “mired in legacy systems,” highlights the new report.

The report, Digital Drag: The Growing Gap Between Tech Priorities and Implementation in the Food and Beverage Industry, reveals that 69% of F&B brands still rely on manual processes such as paper documents, spreadsheets, faxes, and email to manage day-to-day external work and document exchanges.

More than half (55%) are either not at all or somewhat automated and optimized, while only 6% report having “fully integrated” digital solutions. Meanwhile, 60% admit they are stuck in the implementation phase.

Nearly one-third (29%) acknowledge their current operational management methods are inadequate and inefficient, noting that these methods have caused significant internal challenges.

Legacy systems versus modernization

The benefits of digitization and modernization may be clear, but many F&B businesses are managing economic instability, which continues to pressure margins. Companies are struggling to balance urgent modernization needs with near-term risk mitigation, putting off investment in system modernization. 

Sixty-two percent of F&B leaders who took part said they were concerned about broader economic concerns, with 23% pointing to ingredient and material availability issues and their impact on innovation and new product development.

Compliance and regulatory concerns were also cited, with nearly a quarter (24%) indicating they would fast-track the purchase of new technology within 90 days if it was required to meet a mandate.

However, while the report reveals a lag, 82% of companies say implementing new technology remains a top business priority. 

Forty percent of respondents perceived complexity and implementation challenges as the biggest blockers to adopting new tools, outweighing even cost.

TraceGains conducted an online survey of 165 F&B leaders in March 2025. The topics focused on safety, quality, innovation, and R&D at small and large F&B brands worldwide.

“The clock is ticking for food and beverage brands plagued by outdated ERP software and slow-moving consulting models that no longer serve the needs of today’s market,” says Paul Bradley, senior director of Product Marketing at TraceGains. “Our latest research confirms a shifting mindset from outdated playbooks to modern solutions capable of delivering impact right away and deployed in weeks, not months.”