Legislation and ingredients to offer cost threats to CPG industry

Rising ingredient costs and new legislation will be the main barriers to profitability for consumer packaged goods (CPG) companies between now and 2021, according to consumer insight firm Canadean (canadean.com).

The company’s latest report into the greatest threats facing the CGP industry states that manufacturers will spend more time adjusting formulations and labeling to account for legislative changes. In addition, suppliers will face increased pressure from buyers to keep ingredient costs down, and there will be continued interest in lean processes across the supply chain to minimize costs and time of production.