Supply chain disruption has emerged as the single biggest concern for global consumer and retail CEOs, with a sharp rise in uncertainty over the past two years underscoring how deeply external shocks are reshaping business strategy. 

According to the latest KPMG 2025 Consumer and Retail CEO Outlook, 52% of CEOs now identify supply chain resilience as the top challenge driving short-term decisions, up significantly from 30% in 2024 and just 15% in 2023. 

The surge highlights a structural shift in the sector, where supply chains are no longer just operational functions but central to growth, cost management and risk planning. 

“CEOs say supply chain is the biggest challenge driving short-term decisions, at 52%t — up from 30% in 2024, and 15% in 2023,” the report noted. 

From efficiency to resilience 

The report points out that years of disruption, from the pandemic to ongoing geopolitical conflicts, climate events, and rising trade barriers have forced companies to rethink how they source, produce, and distribute goods. “The shocks to supply chains in recent years… has forced companies to rethink how to create more reliable and cost-effective sourcing and logistics,” it said. 

As a result, companies are increasingly shifting towards near-shoring, friend-shoring and local-for-local production models to reduce risk and improve responsiveness. 

Tough operating environment 

The growing supply chain pressure comes at a time when the broader business environment remains uncertain. While 65% of CEOs are confident about global economic growth, optimism about their own company and industry prospects has declined. 

The report attributes this to “a difficult trading environment, characterized by K-shaped consumer demand”, where affluent consumers continue to spend while others cut back. 

This divergence is forcing companies to prioritise cost discipline over pricing, even in traditionally resilient segments. 

AI and strategy shifts 

Even as supply chain risks dominate, companies are turning to technology to navigate the disruption. A majority of CEOs are investing heavily in artificial intelligence to improve forecasting, logistics and inventory management. 

“AI is revolutionizing the consumer and retail sector,” the report said, adding that companies are already seeing “productivity gains, cost savings, and increased revenue.” 

At the same time, deal-making strategies are becoming more cautious. 

“Cash, core and caution is the prevailing mindset when it comes to M&A… deal focus is likely to be strategic rather than transformational,” said Frank Petraglia, Head of Global Deal Advisory, Consumer and Retail at KPMG US. 

The findings suggest that supply chain resilience will remain a defining theme for the sector in the coming years, influencing everything from sourcing strategies to investment decisions.