Packaged Food: Quarterly StatementQ2 2017

  • ID: 3845875
  • Report
  • 27 pages
  • Euromonitor International
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Despite GDP forecasts for 2017 being maintained or improved in most markets, the quarterly update forecast for packaged food shows a downgrade globally and in key markets, particularly in large developed economies. Poor forecasts for Mexico, the UK and the US reflect potentially adverse economic policies. As stagnation hits developed markets, and expansion in emerging markets is more challenging to achieve, key players are lowering their organic growth targets and focusing on cost cutting.

The Packaged Food: Quarterly StatementQ2 2017 global briefing offers an insight into to the size and shape of the Packaged Food market, highlights buzz topics, emerging geographies, categories and trends and identifies the leading companies and brands. It also offers strategic analysis on driving packaged food industry trends like health and wellness, premiumisation, convenience and value-for-money and how those trends influence factors like new product developments, packaging innovations, retail distribution and retail pricing both historically and into the future.

Product coverage: Baby Food, Baked Goods, Breakfast Cereals, Confectionery, Dairy, Edible Oils, Ice Cream and Frozen Desserts, Processed Fruit and Vegetables, Processed Meat and Seafood, Ready Meals, Rice, Pasta and Noodles, Sauces, Dressings and Condiments, Savoury Snacks, Soup, Spreads, Sweet Biscuits, Snack Bars and Fruit Snacks.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
  • Get a detailed picture of the Packaged Food market;
  • Pinpoint growth sectors and identify factors driving change;
  • Understand the competitive environment, the market’s major players and leading brands;
  • Use five-year forecasts to assess how the market is predicted to develop.
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Packaged Food: Quarterly StatementQ2 2017

June 2017
Introduction
Forecast Update
Evaluation of Growth Strategies
About Our Industry Forecast Models
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The risk of recession in the US, albeit low, is heightened by political uncertainty since the 2016 presidential election, with the packaged food sales forecasts in North America and Mexico downgraded. A no-deal Brexit is a key risk for packaged food in the UK and Europe, while in China, a hard landing scenario remains possible, despite the stronger economic forecast for 2017. Mergers and acquisitions may help companies to sustain growth in an uncertain environment.

Risk of US recession due to uncertain trade policies to affect NAFTA countries


Despite an upwards revision to the 2017 GDP forecast in the US, packaged food sales are seeing a downgrade, linked to the greater uncertainty brought about by the outcome of the 2016 presidential election and its potential implications for the US economy, which could see a severe recession scenario, albeit a low probability one. This also poses risks for packaged food sales in NAFTA countries, with Mexico being the most vulnerable.

No-deal Brexit risk has heightened uncertainty for the UK, and may also undermine EU growth


In Europe, the main factor driving uncertainty is linked to the potential impact of Brexit, with a no-deal Brexit being a significant risk to packaged food, with major repercussions in the UK, but also across the EU, though to a lesser extent. Categories driven by impulse consumption and premiumisation are likely to be the most impacted, with consumers expected to switch to cheaper variants.

Hard landing risk in China still significant, and could see the packaged food growth engine come to a halt


While China’s economic growth forecast has been slightly upgraded for 2017, the risk of a China hard landing remains a significant threat to packaged food sales growth, with baby food and dairy likely to cease being major growth engines under this scenario, while less mature categories, such as breakfast cereals and ready meals, could be strongly hit by a switch towards substitute products.

Kraft Heinz’s merger bid for Unilever highlights the appetite for large deals in packaged food


In a context of low growth and high uncertainty, the appetite for mergers and acquisitions to sustain growth may pick up among packaged food giants in 2017. As the US stock exchanges have seen robust performances, US players are likely to be most active, as Kraft Heinz’s merger bid for Unilever suggests. With Kraft Heinz likely to seek other mega-deals in 2017, other key packaged food players will remain in the spotlight as the next potential targets.
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