IGD outlines key trends for grocery supply chain

IGD has outlined its calls to action for the mutual success of the grocery supply chain over the coming years.

The food industry analyst has launched a new ‘Supply Chain Trends 2026’ report, which provides analysis, actionable insights and case studies across all parts of the supply chain. It includes trends across areas from technological and manufacturing to warehousing, logistics, retail and fulfilment.

According to IGD, supply chain headwinds have never been stronger. From geopolitical tensions and extreme weather to rising costs and security threats, disruption is more than risk management – it’s an ongoing, intensifying battle.

However, there are real opportunities to future-proof operations and create the conditions to thrive, IGD believes, by focusing on transformational change to improve performance while optimising costs.

James Rothwell, head of supply chain insights at IGD, said: “Whichever role your business plays in the supply chain, this report offers the rigorous insights and cutting-edge ideas you need to spark transformation. The future of the food supply chain is secure, sustainable, smart, and built to meet customer needs – but it will not build itself. 

”It requires vision, investment, and collaboration. Our call to action is to act now and lead change instead of reacting to it.”

As well as outlining trends across the different parts of the supply chain, the report also identifies shared goals in common, with four clear themes to take forward into action over the next few years:

The first is that sustainability will remain an investment priority, and delivering a sustainable, robust operation remains a key trend for all parts of the supply chain. There will be an ongoing need to reduce emissions, IGD notes.

Secondly, secure supply chains will be foundational for future strategies. Supply chain security is becoming a critical concern for manufacturing and logistics, which are sectors that face heightened exposure to fuel and energy volatility. The risk of disruption must be embedded into strategic planning to safeguard continuity and resilience, IGD says.

On the plus side, technology will enable cost pressures to be mitigated. Companies are expected to put continued downward pressure on costs, which will have to be set against rising customer expectations. Automation and digitalisation will therefore be key enablers to delivering better metrics at lower costs.

Finally, speed and flexibility will become increasingly important in the last mile. Sustainability, security, and technological innovation remain essential, but they won’t satisfy evolving customer expectations alone, IGD stresses. Success will depend on balancing these themes with greater flexibility, faster delivery, and personalised experiences that align with how customers choose to shop.

“As disruption risks intensify, the food industry is accelerating investment and transformation by harnessing technology and sustainable practices to build future-ready supply chains,” Rothwell said. “These shifts will offset rising costs and unlock performance and capacity for tomorrow’s food system. Those who set bold strategies, foster collaboration, and forge critical partnerships will win in the long term.”