Why consumer goods suppliers must adapt and accelerate decision making
23 March 2026IGD research warns that permanent structural changes in 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.
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 tradeoffs 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.
— Stewart Samuel, Director of Retail Futures at IGD
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 decisionmaking 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.