A new report from Deloitte suggests that the consumer products sector is entering 2023 with both optimism regarding future financial performance and concern over ongoing disruption.
Deloitte's latest 2023 Consumer Products Industry Outlook surveyed 150 consumer products executives, with seven in ten respondents claiming their job is more stressful today than it was five years ago.
Furthermore, the outlook predicts that major demographic, political, environmental, technological and cultural shifts are currently underway that are likely to lead to yet more change.
Concerns About Global Economy
Eight in ten respondents say they are neutral or leaning pessimistic about the global economy and geopolitical stability. However, executives are optimistic about both their own company's performance (74%) and strategy (80%).
The report shows that supply chain issues are still a big concern. Despite improvements from the height of pandemic disruption, 62% of CPG executives still expect supply chain issues to be either 'quite' or 'extremely' challenging in 2023.
Almost half (48%) of companies think 'just-in-time' as a supply chain strategy will need to be replaced, and even more (57%) are worried about the reliability of supply from once dependable markets (57%).
'One Of The Most Difficult Periods'
'In almost any direction you look, the squeeze is on. Record inflation, supply chain issues, labour shortages, global conflicts, climate change and a potential recession — each in isolation is challenging. Combined, they are overwhelming,' writes Deloitte.
'Consumer products, as an industry, is based on stability and consistency. Now the squeeze and whipsaw of change could make this one of the most difficult periods to navigate in recent decades.'
You can find the full report here.