The Mazars USA LLP 2016 Food & Beverage Industry Study was conducted earlier this year in order to gain answers to critical industry questions. Industry leaders and decision makers were asked to help define industry concerns and uncover industry trends.
Mazars USA conducted the 2016 Food & Beverage Industry Survey in cooperation with iLumen, an independent research firm, through an online questionnaire.
2016 was projected to be a modest year of growth for the Food & Beverage industry, with most respondents expecting growth in sales, profit and employment, albeit at a decreased level from 2015. The factors most likely to influence sales growth were new customers, improved sales performance and new products, which remain virtually unchanged from 2015. The top trends predicted to drive sales growth are private label foods and healthy/ nutritious foods. The top internal concern for participants was increasing sales and the top external concerns were food safety/traceability and the new government regulations related to the food safety and modernization act. A majority of participants (58 percent) did not expect to increase prices in response to the new FDA menu labeling requirements.
Participants anticipate growth in sales and margins in 2016
- 47% of participants anticipated increased sales in 2016.
- 59% anticipated increased net profits.
- Among the firms who predicted an increase in sales, the average sales increase was expected to be 14%.
Anticipated 2016 increase in employment
- 55% of participants anticipated increased employment with an average estimated increase of 13%.
- However, 71% of respondents indicated that there will be no change in facilities.
- 85% of respondents also indicated no change in acquisitions.
Majority expects labor & healthcare costs to grow & commodity prices to remain steady
- Labor Costs – 63% of respondents predicted an increase over 2015, with an expected average increase of 5%.
- Overall Healthcare Costs – 60% of respondents predicted an increase over 2015, with the expected average
increase being 11%.
- Commodity Prices – 46% of respondents predicted no change over 2015, while 30% expected commodity
prices to decrease.
Learn more from our 2016 Food & Beverage US Study via the download below.