Global Food and Beverage Industry CEO Business Outlook Survey 2012–2013
London, May 28th, 2012 – Across the global food and beverage industry, 47% of C-level respondents are ‘more optimistic’ about revenue growth for their companies over the next 12 months. A further 25% of respondents each are ‘neutral’ and ‘less optimistic’ about their company’s revenue growth prospects (reference see graph below). Strong growth in emerging markets such as India and China has contributed to an increase in revenue optimism. C-level respondents plan to expand their companies’ manufacturing capacities in India through the expansion of categories such as ready-to-eat products and packaged soya food products. In India, the consumption of beer, whisky, and wine have benefited from economic growth and strong demand from middle-class consumers, which has induced C-level respondents to tap the Indian market. Additionally, the global food and beverage market is expected to continue increased revenue growth over the next 12 months due to increased consumer demand for health and wellness oriented food, and beverage products such as organic and gluten-free food, as well as increased customer demand in emerging markets, mainly China and India, and the adoption of sustainable sourcing strategies by food and beverage companies.
Global food and beverage industry C-level respondents identify India to be the most important region for growth among emerging markets, along with China and the Middle East. C-level respondents identify India as offering the largest growth potential among emerging markets over the next 12 months. The Government of India, in order to encourage food production, plans to set up food processing parks across the country, and also plans to allocate a subsidy of US$22 billion for this endeavor. Furthermore, the increased demand for ready-to-eat products and packaged soya food products among middle-class consumers has encouraged C-level respondents to expand their companies’ production capacities in India.
The average size of the global annual procurement budget among food and beverage industry C-level respondents is forecast at US$53.7 million for 2012. In addition, the Canadean industry survey reveals that C-level respondents’ procurement expenditure is projected to increase by 5.1% over the next 12 months.
‘Quality’, ‘level of service’, and ‘price’ are considered very important factors for C-level respondents while selecting a supplier, whereas ‘supplier’s environmental record’, ‘supplier’s CSR reputation’, and ‘proximity of supplier operations’ are considered the least important factors.
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