IFDA Releases 2025 Technology Benchmarking Report Revealing Shifts in Foodservice Distribution Tech Adoption

Study Shows Growing Focus on Labor Savings and AI Adoption Despite Mixed Results

McLEAN, Va. – July 24, 2025 – The International Foodservice Distributors Association (IFDA) announced the release of its 2025 Foodservice Distribution Industry Technology Report, providing comprehensive insights into technology adoption trends, challenges, and opportunities facing the industry. Based on confidential surveys from 32 foodservice distributors, the report reveals significant shifts in technology priorities and adoption patterns.

Key findings show distributors are becoming more confident in their technology capabilities while placing greater emphasis on labor savings and customization requirements.

“Distributors are moving away from viewing themselves as ‘average’ when it comes to leveraging technology,” said Annika Stensson, Senior Director of Research and Innovation at IFDA. “We’re seeing a clear evolution in how companies approach technology decisions, with labor savings emerging as a critical factor alongside traditional concerns about integration and ROI.”

Major report findings since the last published report in 2023:

• Technology Effectiveness Confidence Grows: The percentage of distributors rating their technology effectiveness as “average” decreased from 47% in 2023 to 41% in 2025, with companies increasingly positioning themselves above or below average rather than in the middle.
• Labor Savings Drives Technology Decisions: Labor savings have emerged as a top factor influencing technology decisions for 28% of distributors in 2025, more than doubling from just 12% in 2023. Similarly, customization requirements jumped from 17% to 28% over the same period.
• AI Adoption Triples but Results Mixed: Approximately one-third of distributors now report using generative and/or traditional AI, compared to only 12% in 2023. However, nearly one-third of AI users report the technology is less effective than anticipated.
• Wearable Technology Gains Momentum: Wearable technology adoption increased significantly, with 56% of distributors using some form of wearables in 2025 versus 41% in 2023.
• Warehouse Automation Shows Selective Growth: While picking and replenishment automation remained steady, distributors report increased automation in receiving and put-away operations.

The report explores how foodservice distributors are navigating the complex landscape of emerging technologies while balancing budget constraints, integration challenges, and ROI expectations. Despite rapid technological advancement, integration compatibility with existing systems and budget constraints remain the top factors influencing technology decisions.

“This report provides invaluable benchmarking data for distributors looking to optimize their technology investments,” added Stensson. “The insights help companies understand where they stand relative to their peers and identify opportunities for improvement.”

The comprehensive analysis segments data by responding distributors, sales volume, and other relevant aggregations, offering detailed insights into technology utilization patterns across different business sizes and operational models.

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About the International Foodservice Distributors Association

The International Foodservice Distributors Association (IFDA) is the premier trade organization representing the $400 billion foodservice distribution industry. This industry ensures a safe and efficient supply of food and products to more than one million restaurants and foodservice outlets in the U.S. daily. For more information, visit ifdaonline.org.

About the Report

The 2025 IFDA Foodservice Distribution Industry Technology Report was compiled, tabulated, and analyzed by Industry Insights Inc. (industryinsights.com), an independent professional research and consulting firm specializing in operating surveys, compensation studies, market assessment surveys, customer satisfaction research, and customized research for the foodservice industry.

Media Contact:
Kristen Petersen
kpetersen@ifdaonline.org