More than four-fifths (82%) of international food and grocery companies are confident about their future, according to latest research from IGD – the food and grocery experts.
Over half (53%) think the global grocery retail industry will outperform the rest of the economy over the next five years, while 29% believe they will have a similar performance relative to other industries.
The findings are revealed in IGD’s International Grocery Retailing Survey, which also shows 80% of the companies surveyed have increased their investment in new product development or kept it at similar levels over the last 18 months.
When asked about changes in input costs over the next year:
· 75% think the price of ingredients will increase
· 68% feel energy prices will go up
· 57% believe labour costs will stay the same or decrease
Joanne Denney-Finch, chief executive, IGD, said: “Although global economic conditions are tough, food and grocery companies are more resilient. Our survey shows they are confident about their prospects compared to other industries. This confidence is based on a drive to innovate and to build on value for money as customers feel the pinch from increases in the cost of living, such as higher petrol prices.
“Food and grocery companies clearly see themselves facing several cost pressures including higher ingredient and energy costs. But operating in such a competitive market place they are continually reassessing their operations to ensure maximum efficiency, which should help cushion shoppers from the full impact of the increases.”