Dive Brief:
- Decision-makers in the food and beverage industries expect a significant increase in sales, profit, and employment in 2015, according to the third annual U.S. Food & Beverage Industry Study from accounting, tax, and advisory services firm WeiserMazars LLP.
- Survey participants anticipate that sales will increase an average of 18% in 2015, a sizable increase over a 13% jump in sales in 2014. Major factors for this sales increase include new customers, sales performance improvements, and new products, the study found.
- "Average net profits are also expected to increase 18% in 2015 compared with a 17% increase in 2014, while industry employment is predicted to post a 13% gain from 2014," according to a news release.
Dive Insight:
"This year’s study reaffirms many of the trends we have seen emerge in the overall food and beverage industry over the last three years as companies continue to focus on new customers and improved sales performance to drive sales growth," Louis J. Biscotti, Partner & National Director of WeiserMazars’ Food & Beverage Practice, said in a news release.
These sales increases were backed up by another report released earlier this year that found the global packaged foods industry would surpass $3 trillion by 2020, growing at an annual rate of 4.5% over the next five years.
As for concerns in the industry, notable differences existed between large and small companies. While small companies were most concerned about food safety, traceability, and quality assurance followed by rising commodity costs, large companies shared those concerns but ranked the new government regulations related to the impending Food Safety Modernization Act before those two.
This study also confirms that food companies are seeing the potential for locally-grown foods in increasing their sales. With cost-cutting measures being so prevalent throughout the industry, this study points to a payoff.