Hyderabad, Andhra Pradesh -- (SBWIRE) -- 05/24/2012 -- ReportReserve announces the inclusion of its new report in Food,Beverages & Tobacco Industry
“Global Food Industry Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies” is a new report by Canadean that analyzes how global food manufacturer industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report provides data and analysis on category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers in the global food manufacturing industry.
The report also identifies future growth of food manufacturers and suppliers, M&A, and e-procurement in the global food manufacturing industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global food manufacturers’ industry, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size.
Introduction and Landscape
Why was the report written?
This report is the result of an extensive survey drawn from Canadean’s exclusive panel of leading global food manufacturer industry executives. The report provides data and analysis on buyer expenditure, procurement, and developments within the global food manufacturers’ industry. This report includes key topics such as global food manufacturers’ industry expenditure and procurement behaviors and strategies. This report identifies the threats and opportunities within the global food manufacturing industry, economic outlook trends, and business confidence within global manufacturer industry executives.Most secondary research reports are based on general industry drivers and do not understand the industry executives’ attitude and changing behaviors, creating a gap in presenting the business outlook of the industry. In an effort to bridge this gap, Canadean created this primary research-based report by gathering the opinions of multiple stake holders in the value-chain of the global food manufacturers’ industry.
What is the current market landscape and what is changing?
Executives from global food manufacturer companies expect increased levels of consolidation in their industry over the next 12 months, with 45% of respondents anticipating at least some increase in M&A activity. Furthermore, 35% of respondents expect ‘no change’ in M&A activity over the next 12 months.
What are the key drivers behind recent market changes?
M&A activity is expected to increase as a result of margin pressure on manufacturers, increasing cost pressures, new consolidation opportunities, and the weak liquidity position of many small companies. The need to manage new cost or demand pressures, comply with procedures, reduce operational expenses, and attain economies of scale is also expected to drive M&A activity in the global food manufacturers’ industry.
What makes this report unique and essential to read?
“Global Food Industry Survey 2012–2013: Industry Dynamics, Market Trends and Opportunities, Buyer Spend and Procurement Strategies” is a new report by Canadean that analyzes how global food manufacturer industry companies’ procurement expenditure, business strategies, and practices are set to change in 2012–2013. This report provides data and analysis on category-level spending outlooks, budgets, supplier selection criteria, business challenges, and investment opportunities of leading purchase decision makers in the global food manufacturing industry. The report also identifies future growth of food manufacturers and suppliers, M&A, and e-procurement in the global food manufacturing industry. This report not only grants access to the opinions and strategies of business decision makers and competitors in the global food manufacturers’ industry, but also examines their actions surrounding business priorities. The report also provides access to information categorized by region, company type, and size.
Key Features and Benefits
Project industry trends and revenue growth expectations in 2012 and make informed business decisions.
Drive revenues by understanding future product investment areas and key growth regions.
Uncover key challenges and opportunities, and identify key actions required to win and maintain food manufacturers’ business.
Formulate effective sales and marketing strategies by identifying how buyer budgets are changing and direction of spend in the future. Better promote your business by aligning your capabilities and business practices with your customer’s changing needs.
Secure stronger customer relationships by understanding the behavior and changing strategies of industry buyers.
Key Market Issues
Global food manufacturer industry respondents identify China to be the most important region for growth among emerging markets, along with India and the Middle East. Furthermore, Brazil and Indonesia are considered the two most important emerging markets by respondents from food manufacturing companies. With strong economic growth in China and India, along with a significant increase in household income, possibility of reduction in food prices due to ease of agri commodity prices, and changes in consumer attitude towards processed and healthy foods, makes them attractive to foreign investors.
Among food manufacturers, 59% of respondents rate ‘responding to pricing pressure’ as the most important business concern in 2012, while 52% highlight ‘cost containment’. Food manufacturers highlight factors such as weather disruptions, increasing raw material prices, and increasing merger and acquisition activity as pricing pressure issues. Respondents operating in North America and the Rest of the World identify ‘responding to pricing pressure’ and ‘cost containment’ as leading business concerns in 2012. Furthermore, respondents from companies with leading operations in Europe identify ‘responding to pricing pressure’ and ‘market uncertainty’ as the leading business concerns in 2012.
The average size of the global annual procurement budget among food manufacturer industry respondents is forecast at US$173 million for 2012. A comparison of global procurement budgets by operating region shows that global food manufacturer industry buyers with leading operations in North America have the highest average procurement budgets in 2012, at US$250.2 million.
‘Quality’, ‘price’, ‘level of service’, and ‘supplier’s record for reliability’ are considered important factors for supplier selection in the global food manufacturing industry, while ‘supplier’s environmental record’, ‘proximity of supplier operations’, and ‘supplier’s CSR reputation’ are considered the least important. Food manufacturer respondents are prioritizing procurement objectives such as ‘internal operating cost reductions’, ‘locate lower cost sources of supply’, and ‘pursue joint cost reduction efforts with selected suppliers’ for the next 12 months.
The optimism level in the global food manufacturing sector is expected to be fuelled by increased consumer demand towards health and wellness oriented food products.
Key Highlights
An analysis of responses by food manufacturing companies reveals that ‘new product development’, ‘machinery and equipment purchase’, and ‘IT infrastructure development’will record a significant increase in capital expenditure over the next 12 months.
Global food manufacturer respondents consider the US, the UK, and Canada to offer the largest growth potential among developed markets over the next 12 months. Furthermore, Singapore, Taiwan and Hong Kong, and Japan are identified as other developed markets with the most potential for growth in 2012.
66% of food manufacturer respondents project an increase in investment toward ‘new product development’, with an increasing focus on new flavors and product features. For example, in order to expand its snack business in the US, PepsiCo snack brand Doritos, announced the introduction of its new product ‘Doritos JACKED tortillas’ in March 2012. These tortilla chips are 40% larger than their predecessor and are available in two distinct flavors, Enchilada Supreme and Smoky Chipotle BBQ.
Global food industry suppliers plan to increase capital expenditure on ‘new product development’ over the next 12 months.For example, in January 2012, Key Technology, a supplier of machinery, introduced a new, redesigned ‘Auto Dryer’ for eliminating surface water from fresh-cut produce while enabling continuous line flow. The new dryer is effective in removing moisture from fresh-cut produce gently and consistently, to improve product quality and extend shelf life.
According to 37% of respondents from food manufacturing companies, headcounts in their organizations in 2012 are expected to increase steadily by up to 2%. However, 34% of respondents from food manufacturing companies anticipate ‘no change’ in recruitment activity in 2012, which indicates that slow economic development in developed countries and market uncertainty could reduce recruitment activity."
For further information visit http://www.reportreserve.com/report/global-food-industry-survey-2012%E2%80%932013-industry-dynamics-market-trends-and-opportunities-buyer-spend-and-procurement-strategies-report-538344