Financial survival mode dominates concerns ahead of Budget

Ahead of the UK Government’s Autumn Statement this Wednesday, exclusive new research suggests the food and beverage sector is shifting into a financial “survival mode,” with fears regarding credit and liquidity now overshadowing operational strategies.

According to advance findings from Ideagen’s 2025 Food Industry Audit, financial risks now occupy four of the top five concerns for industry leaders, signalling a significant departure from previous years where supply chain and operational issues often took precedence.

The report, which analysed risk statements from 150 food and beverage businesses, reveals that credit concern has surged to the number one risk spot, cited by 64% of businesses (up from 55% in 2024).

However, the most alarming shift is the fear of running out of cash. Liquidity risk saw the largest increase of any factor, jumping 16 percentage points to 62%, placing it firmly in the top three risks for 2025.

The data highlights a distinct disparity in how these pressures are felt across the market. Medium-sized enterprises (turnover between £100m–£250m) appear to be bearing the brunt of the economic downturn.

82% of medium-sized businesses cited credit as a critical risk.

By comparison, only 48% of large enterprises (turnover >£250m) flagged the same concern.

One in five medium-sized businesses explicitly flagged labuor costs as a major threat, compared to just 13% of the industry overall.

Ideagen CEO Ben Dorks warned that the hyper-focus on balance sheets might have unintended consequences for consumers.

“Our research has revealed an industry under intense pressure: financial concerns now dominate four of the top five risks,” said Ben Dorks, CEO of Ideagen. “The danger is that this intense focus on survival crowds out the strategic priorities – like product safety and quality assurance – which is where the industry would prefer to focus its efforts.”

The data supports Dorks’ concern: while finance dominates the top of the list, product safety has slipped to 11th place, just outside the top 10. Furthermore, despite complex supply chains, food fraud was mentioned as a primary risk by only 2% of respondents.

The audit also identified several “new entrants” to the risk register for the coming year, reflecting a volatile geopolitical and regulatory landscape:

• Minimum wage increases: Formally entered as a risk category for the first time.
• Geopolitics: conflicts in Gaza, the Middle East, and the Red Sea are now explicitly cited regarding their impact on energy prices and availability
• Environmental factors: “poor harvest” emerged as a specific category, alongside concerns regarding the Plastic Packaging Tax.

The 2025 Top 10 Risks

1. Credit (64%)
2. Commodity inflation (63%)
3. Liquidity (62%)
4. Currency/exchange rate (53%)
5. Supply chain/commodity supply (49%)
6. Interest rate (43%)
7. Customers (39%)
8. Competition (30%)
9. Regulatory (27%)
10. People (24%)

The full report, due for publication in December, compares these findings against data dating back to 2018, offering a view of the industry’s evolution from pre-pandemic conditions to the current economic climate.