IGD tells suppliers "speed is the new competitive currency"
12 March 2026New IGD research warns that permanent structural changes across the industry are forcing suppliers to rethink their growth strategies to stay competitive.
Consumer goods companies must accelerate decision making and rethink their growth strategies to stay competitive in the modern industry, according to new research from IGD (Institute of Grocery Distribution).
The report, ‘What consumer goods suppliers must get right’, highlights that suppliers are navigating major structural shifts that are reshaping demand, intensifying competitive pressures, and raising operational complexity. These converging forces, IGD argues, are changing the rulebook for how suppliers compete.
Stewart Samuel, Director of Retail Futures at IGD, said: “Evolving consumer behaviours, economic headwinds, and accelerating digital expectations are redefining how suppliers must innovate and create value. Meanwhile, supply chain strain and rising retailer influence require sharper strategic trade‑offs and greater operational agility.
“These structural shifts are permanent, not temporary, and they help explain why suppliers increasingly find trusted growth levers are unreliable and traditional market advantages are eroding. The old playbook cannot keep pace with today’s realities.”
Risk of losing relevance
The report explains that suppliers face a combination of slowing volume growth and consumption patterns shifting toward smaller missions, health-led choices, and more diverse household structures.
At the same time, retailers are also simplifying ranges, seeking stronger joint business plans with suppliers, and expecting suppliers to activate across physical, digital and retail media channels simultaneously. Meanwhile, digital disruption and AI adoption are resetting industry expectations for how quickly businesses can react to trends and shifts.
Stewart commented: “Speed is the new competitive currency, and its value will only increase. Suppliers that are slower to make decisions and reallocate resources when opportunities arise will watch competitors pull ahead.
“But speed does not mean haste; it’s about building and focusing capabilities so you can make the right decisions - and actions – quickly as conditions change.”
A critical window for action
The report sets out 10 priorities suppliers must build into their operating model to stay competitive in the next decade and outlines immediate priorities for the next 12-18 months.
The immediate priorities cover “the basics”, including:
Simplifying portfolios to free up capital and capacity.
Resetting joint business plans to value and margin.
Using AI to guide decisions in forecasting, pricing, and retail media.
Making financial discipline visible and shared across teams.
Creating faster, clearer decision‑making structures.
Samuel commented: “Suppliers are in a critical window for action. Slow is now a strategic risk. The market won’t wait, and suppliers can’t afford to either.”
Turn insight into action with IGD Consulting
To understand what these shifts mean for your business, and to identify where you can move faster to stay competitive, book a free consultation with IGD’s experts via the IGD Consulting page.
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IGD brings together stakeholders from across the food system, fostering action across on critical challenges across a broad cross section of forums. Through evidence-based insights, credible research, and thought leadership, IGD guides businesses to make informed decisions that not only benefit their operations but also contribute to the collective good of society. As a charity with a long-standing commitment to the food and grocery industry, IGD does not advocate for any single commercial interest but works towards fostering alignment on shared goals that can have a positive, lasting impact on both the industry and the communities it serves. Its neutrality and impartiality are key to its role in facilitating collaboration, whether through policy development or addressing emerging risks and opportunities. By staying connected to the changing dynamics of the world, IGD ensures that the food system remains robust and sustainable, creating tangible benefits for businesses, consumers and society.