January 2018
Featured in this insight: Consumer goods & FMCG , Environment & sustainability, Financial services, Food & drink
Recent survey reveals predictions for the food industry in 2018: With economic uncertainty sweeping the UK markets, three quarters of food companies believe that they will be facing a more challenging pricing environment, compared to one fifth (19.6%) who are under the assumption that the economy will be the same as last year.
In addition, over three fifths (69.1%) of respondents said they are more likely to increase their prices to compensate for the challenging economic climate, whereas under one third (30.9%) plan to maintain last year’s prices.
Out of the 69.1%, the following number of respondents said they are likely to increase their prices by the following percentages:
- 23.6% of respondents said 1-3%;
- 34.6% of respondents said 4-6%;
- 1.8% of respondents said 7-9%;
- 9.1% of respondents said 10%+.
However, when asked if they think their profits will grow in 2018, over half of those surveyed (55.6%) expect their profits to increase, over one third (35.2%) expect their profits to remain the same and under one tenth (9.3%) predict a decline in profits.
In comparison to last year’s results, the number of participants who expect to see an increase in profits declined by 4.5%. However, their outlook for 2018 was more promising than last year’s as more respondents (+3.2%) are positive that their profits won’t decline.
Furthermore, almost half (49.3%) believe that their outlook for consumer confidence would improve, over one quarter (28.8%) expect it to remain the same and just over one fifth (21.9%) said it would worsen.
Commenting on the survey’s results, Ben Cooper of just-food, believes that the reason for the decline in consumer confidence is due to “Brexit concerns, inflation and sustained low wages growth.”
View more of our sector specific insights: Consumer goods & FMCG, Environment & sustainability, Financial services, Food & drink
