Seventy-seven percent of F&B manufacturers report an increase in digital tools and data sources over the past 12 months. Why is this?  

Global food and beverage manufacturers face rising pressure to balance cost control, compliance and operational excellence. In response, many turn to digital transformation to optimize processes, improve agility and unlock performance gains.

Hexagon’s recent global study, which includes insights from hundreds of senior leaders across the food and beverage (F&B) manufacturing sector, reveals an accelerating shift. These investments aim to remove friction across workflows, improve resource utilization and build a resilient, responsive operating model that spans production to delivery.  

Download the full Hexagon Data Connectivity & Visibility eBook to learn more.

Cost, Compliance, and Complexity

F&B executives consistently cite rising costs, missed project milestones and unplanned downtime as critical threats to performance. In fact, 73% report projects running over budget, while 67% face significant impacts from equipment scalability issues. These pressures intensify in an environment shaped by inflation, trade disruption and evolving consumer demands. 
Regulatory compliance adds further complexity. Seventy-two percent of F&B executives identify safety concerns as a strong or severe threat to operations, while 66% say the same of cybersecurity. Legacy infrastructure, siloed data systems and manual processes continue to constrain performance, drive up risk and hinder timely decision making.

What’s Driving the Gap?

Survey respondents point to a common set of root causes. Talent shortages weigh heavily. In fact, 75% cite workforce attrition, and 74% report skills gaps as major contributors to operational disruption. At the same time, technical limitations present systemic barriers:

• 78% say incomplete or inaccurate data affects decision making
• 74% face delays due to outdated or disconnected systems
• 79% flag legacy infrastructure as a strong or severe barrier

Without a unified digital strategy, even the most advanced tools struggle to deliver measurable impact.

The Role of Connected Data in Performance Improvement

To close these gaps, many manufacturers have increased their use of visualization and analytics platforms. According to Hexagon’s survey, 79% of F&B manufacturing organizations use visualization dashboards as the most regularly utilized technology. The report also highlights growing global adoption of digital twins, with 80% of leaders citing AI as a key driver of their increased interest in the technology. 

Yet more tools do not always lead to better results. Hexagon’s study reveals a growing investment/value gap:

• 62% say transformation efforts haven’t delivered the expected ROI
• 69% believe data limitations affect financial performance
• 63% say manual reporting has increased with more tools, costing nearly 19 hours per week per employee

This underscores a key point: technology alone doesn’t solve operational challenges. Success depends on connectivity, context and continuity—the pillars of digital thread maturity.

Maturity Requires Strategy

Digital thread technology offers a path forward. In fact, 65% of F&B manufacturing businesses report the use of digital thread technology. When implemented correctly, it connects systems, assets and teams across the value chain to preserve data context and gain real-time insight. But maturity doesn’t happen by chance. Hexagon identifies three stages of digital thread maturity:

• Low: Manual, ad hoc transfers with minimal value
• Moderate: Partial integration that lacks operational alignment
• Robust: Platform-based architecture that ensures end-to-end continuity

Progress toward higher maturity begins with a clear asset management strategy. Leaders must determine desired business outcomes before aligning the right technology to ensure that data flows where and when it’s needed. Only then can digital transformation deliver sustained performance, support compliance and foster innovation.

Ready for What’s Next?

Hexagon’s research shows that F&B manufacturers see potential in digital innovation. However, many face structural challenges that limit value. Organizations that prioritize strategy, invest in connectivity and modernize asset management systems will be best positioned to meet rising expectations and deliver measurable results.  

Download the full Hexagon Data Connectivity & Visibility eBook to learn more.