Food industry progress stifled by outdated tech: report

Coin Geek

09-05-2025

Getting your Trinity Audio player ready...
New research has raised alarm over the slow pace of emerging technology adoption in the food industry compared to other key sectors.
According to the research by TraceGains, the global food and beverage sector is facing dire risks of falling behind in the digitization trend, given its reliance on outdated technologies. The research surveyed 165 executives in the food industry, with analysts highlighting an underwhelming appetite for next-gen tech.
TraceGains' report says 69% of firms are dependent on manual systems for their operational process. Over a third of firms lean on fax and spreadsheets for day-to-day operations compared to their peers in other industries with similar market capitalizations.
'The clock is ticking for food and beverage brands plagued by outdated ERP software and slow-moving consulting models that no longer serve the needs of today's market,' said Paul Bradley, Senior Director of Product Marketing.
Analysts at TraceGains note that legacy workflows in the food and beverage industry have remained unchanged for nearly three decades. The report notes that the slow pace of change causes companies to risk breaching regulatory compliance rules, negatively affecting productivity and efficiency.
82% of respondents are on increasing their investment in improving their internal processes with emerging technologies. The surveyed executives say improving internal production and efficiency is a key driver in integrating emerging technologies into their operations, while others are eyeing the cost benefits.
However, the research notes that 60% of firms in the sector remain in the implementation phase. The research highlights the challenge of steep implementation costs and the complexities associated with emerging technologies.
The lowest-hanging fruit for firms in the food industry keen to embrace digitization appears to be artificial intelligence (AI) systems for automation. On the other hand, some companies are adopting blockchain technology for its immutability and transparency perks for supply chain use cases.
Rising use cases for emerging technologies
A few pioneers, including countries, are exploring blockchain in the food and beverages sector. In the supply chain sector, firms are leaning on Web3 solutions to protect consumers from fake products, allowing consumers to track provenance.
In Vietnam and Malaysia, companies are turning to blockchain to authenticate halal certificates. A handful of firms have launched non-fungible tokens (NFTs) to explore novel solutions to interact and engage with consumers.
Digital payments are changing the landscape for law firms
Meanwhile, a new report from U.K.-based legal technology company Legl has highlighted a growing trend among law firms and clients embracing digital payment solutions. Legl says clients are opting for digital payment solutions in droves, ditching the use of cash and bank transfers. Per the report, 66% of clients retaining the services of a lawyer are turning to online payment methods to settle their legal bills, a big jump since 2020.
Dubbed the 2025 UK Midsize Law Firm Priorities Report, Legl's analyst says only 1 in 5 law firm clients rely on cash payments for legal services. Less than 20% of clients prefer bank transfers to settle bills, with cheques also recording a steep decline.
Credit card usage is holding its own with a 46% dominance, but could see its market share reduce in the coming years. Legl notes that credit cards may lose their place to digital wallets, open banking, embedded payments, and other emerging payment trends in the coming years.
Legl is pioneering its embedded payment functionalities following a partnership with Adyen to streamline payment for legal services.
'Using a portal, like the one Legl provides, is more secure and gives clients more peace of mind when sharing this kind of information,' said Burnett and Reid practice manager Helen Strachan.
While clients enjoy the perks of digitization in payments, the report identifies a string of benefits for law firms. By moving away from traditional bank transfers, law firms are recovering scores of man-hours while shortening payment times for legal services.
'Clients started using payment links almost immediately, and our finance team found that many clients now pay more quickly than they would have otherwise,' said Julia Taylor, director of client services at Debenhams Ottaway. 'In fact, we've saved 60-70 hours across 600+ payments.'
The report notes that digital payments will allow firms to access real-time analytics and data. There is a consensus that payments are likely to be settled earlier if invoices are submitted at the start of the week, a trend observed using digital payment systems.
Finally, the integration of AI and blockchain-based functionalities is expected to help law firms achieve regulatory compliance.
Digital payments are gathering significant steam
Digital payments are set to record high growth in the coming years. According to a report, the vertical will process payment volumes exceeding $3.8 trillion in 2025, a significant leap from previous years.
The research tips stablecoins and digital assets to make up a significant slice of the volume, with the U.S. said to lead the market. However, the Asia Pacific will challenge America's dominance with a strong push led by Hong Kong and Singapore.
Watch | Tech of Tomorrow: Diving into the impact of tech in shaping the future
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">