The business environment for the consumer goods industry in Europe remains challenging in 2023.
Although there are signs of improvement compared to our 2022 barometer, supply chain disruption continues to negatively impact manufacturing. Many companies have struggled to source the necessary components for production over the last 12 months.
Due to these sourcing issues, product composition has had to be adapted, and packaging modified. Production has been reduced or cut, and continues to be affected by labour shortages and unforeseen costs of adaptation. These challenges—sourcing, composition, packaging, and labour costs—strain manufacturing processes even before inflation is considered.
The purchasing power of consumers in the EU remains strained
The challenges of the economic environment continue to be a major concern for many households. Consumer goods manufacturers have supported consumers throughout this crisis by providing promotions across all categories and products through retail partners while absorbing costs.
The competitiveness of Europe remains a concern
Among the 900 manufacturers surveyed, nearly a third (31%) have stopped R&D investment in 2023. Looking ahead, nearly one-fifth (9%) of participants plan to reduce employment in the next few months.
