Recent survey reveals predictions for the food industry in 2018

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18th January 2018 17:11 - Food

Recent survey reveals FMCG 2018 predictions for the grocery sector

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.” 

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