KPMG's Food and Beverage Industry Outlook Survey provides perspectives and insights of 103 C-suite and other top-level executives in the food and beverage sector. The report compares the responses of the participants around current business conditions, areas of growth and investment, and factors that may help or hinder economic recovery, with the responses from a similar survey conducted in the second quarter of 2011.
According to KPMG's 2012 food and beverage survey, food and beverage companies have significant cash on the balance sheets, and intend to increase capital spending on new products, mergers and acquisitions, and technology, such as - cloud computing and data analytics - to help fuel growth. While investing in growth, executives remain focused on costs and efficiency, and indicate their companies are placing increased emphasis on talent management and regulatory compliance. Executives also indicate that growth continues to be challenged by pricing concerns, input and labor costs, as well as decreased consumer confidence.
The survey also revealed the following:
- More than half of the executives surveyed say that revenues are up from last year, and 72 percent expect revenue to continue to climb this year. Over 60 percent of respondents feel the industry will grow 1 to 5 percent over the next year.
- Similarly, 53 percent believe their companies will increase the number of U.S. employees in the year ahead. However, 31 percent do not anticipate their company’s headcount to ever return to prerecession levels.
- Respondents do not predict a full U.S. economic recovery until 2014–2015 or later. The time line for recovery has been pushed back compared to the 2011 survey, when respondents predicted a recovery at the end of 2013–2014.
- Sixty-eight percent of executives surveyed indicate that their companies have significant cash on their balance sheet and the majority indicate they will look to make investments over the next 18 months.
- Technology will be a key investment area, with 36 percent citing it to be a top investment priority over the next year. Many acknowledge that technology, such as data analytics and cloud computing, will help reduce costs, enhance interactions with customers and suppliers, and accelerate time to market.
- Survey respondents indicated they believe retaining and adding new customers, expansion in core and new markets, and product innovations will be the biggest drivers of growth.
- Respondents indicate that they are more focused on talent management/retention initiatives compared to last year’s survey results, with an increased emphasis on compensation and training.
For more information, download the full report below.
Food and Beverage Industry Outlook Survey (PDF / 534 KB)