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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