5 Ingredient Sourcing Challenges CPG Brands Face

5 Ingredient Sourcing Challenges CPG Brands Face

Let&#;s get to the point: small CPG brands (<$1M in annual revenue) experience the pain of ingredient sourcing much more than large brands. In the survey, small brands are 3x more likely to say that they find it very difficult or difficult to source ingredients that meet their requirements.

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When you&#;re a small brand, finding delicious, affordable ingredients for your products that also meet any certifications that you want is time-consuming and challenging, and finding sustainable or climate-friendly ingredients is even harder. Most small brands lack internal resources dedicated to sourcing and may not be large enough to meet minimum order requirements. 

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While sourcing can be more challenging for small CPG brands, small brands have more flexibility than larger brands. This means that you&#;re able to make unique partnerships with food producers directly or change your ingredient&#;s source much more quickly.

Consumer Research Implication: this insight gave Planet FWD information on their potential target consumer, allowing them to understand their pain points and where they are on their growth journey. 

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