Global Food Industry Survey 2013–2014: Market Trends, Buyer Spend and Procurement Strategies in the Global Food Industry

Wednesday 29 May 2013, Amsterdam

Executives from the global food manufacturers’ industry expect to see increased levels of consolidation, with 54% of respondents anticipating that there will be either a ‘significant increase’ or an ‘increase’ in merger and acquisition activities in 2013. The anticipation of mergers and acquisitions among global food manufacturers has increased by nine percentage points when compared with the 2012 survey, and has remained the same when compared with the 2011 survey. The majority of suppliers to the food manufacturing industry also project that M&A activity will increase in 2013. Respondents expect an increase in consolidation activity due to industry specific reasons, such as the consolidation of food packaging businesses, the need to make up for declining volumes, increasing cost pressures, expansion in new markets, and increasing competition.

Figure 3: Revenue Growth Optimism by Global Food Industry Suppliers (%), 2010–2013

                                                                                                                                                                                                                                                                             

Throughout the industry, 68% and 49% of food manufacturers and supplier respondents are ‘more optimistic’ about revenue growth for their company in 2013 as compared to 2012. This increase in optimism is attributed to investment and advancement in technology, and a growing awareness among consumers with regard to healthy food consumption. The top priorities for the global food manufacturers’ industry in 2013 are the addition of ‘new products and services’, ‘improving operational efficiency’, and to ‘expand in emerging markets’. According to suppliers, the top three key expected changes in business structure for 2013 are the addition of ‘new products and services’, ‘expand in emerging markets’, and a concentration on ‘improving operational efficiency’.

Global food manufacturer respondents consider China, India, and Brazil to offer the largest growth potential among emerging markets in 2013–2014. Global food manufacturers highlight China to offer the largest growth potential in 2013–2014, as it represents one of the largest consumers of food products in the world, wherein there is an increased consumption of pork, corn, beef, and ready to eat food.