Nearly 82% of food and beverage manufacturers experienced product recalls in the past five years, with labor shortages and rising compliance costs forcing the industry to invest heavily in automated quality management and AI solutions to reduce risk and improve product safety.
- 82% of food manufacturers experienced product recalls in the past five years, with recall costs averaging $10-49.9 million each
- 70% report labor shortages that negatively impact product quality, driving investment in automation and AI technologies
- 46% of recalls stem from internal issues, while 41% are caused by supplier problems, highlighting supply chain vulnerability
- 33% currently use AI with 47% planning deployment within two years to automate processes, improve training, and detect defects
- 70% increased quality spending in 2026, focusing on compliance improvements, supply chain strengthening, and risk reduction
Nearly 82% of food and beverage manufacturers experienced a product recall in past 5 years, according to Octave’s Pulse of Quality in Manufacturing survey.
“Food and beverage manufacturers are at a critical juncture. Against a backdrop of food recalls that dominated the headlines throughout the summer, quality is no longer just a function—it’s a strategic lever for reducing risk and fueling corporate resilience,” says Vick Vaishnavi, head of the Octave Reliance business. “This year’s Pulse of Quality in Manufacturing survey findings makes it clear that the food and beverage industry is turning to more automated and strategic quality management to turn the tide on product recalls.”
Key takeaways:
· 82% have experienced a product recall in the past five years. 41% said the cost to rectify each recall is between $10-49.9 million. 46% cite internal issues as the primary cause of product recalls. And, 41% said they are caused by supplier issues.
· 70% report being impacted by labor or skills shortages, while 82% say these shortages are negatively impacting product quality.
· 65% said that external compliance mandates and quality audits are increasing. 55% of respondents said that internal compliance requirements have increased in the past 12 months.
· 59% of respondents said that trade tariffs and geopolitical tension have had a significant impact on their businesses. 65% said they have forced price increases. 52% said it‘s forcing them to consider onshoring operations. And, 52% said it is forcing them to find domestic suppliers.
· 33% of respondents are using AI today, and 47% plan on deploying AI in the next in two years. Respondents are looking for AI to help them to automate cores processes (47%); automate document processing (47%); improve staff training (35%); predict future trends (31%); and spot defects on the manufacturing floor (34%).
· 70% of respondents said their organizations increased spend on quality programs in 2026. The key drivers to increased quality investments include improved compliance (41%); a stronger supply chain (43%); increased revenue (40%); reduced costs (34%); and reduced risk (36%).
