Atradius, The Netherlands, released its latest market research report, focusing on food performance and the state of the future of food.
“In general, the food sector continues to perform reasonably well, with a stable or even good sector performance assessment in many countries,” the report details. “It helps that, compared to other industries, the food industry is non-cyclical. Despite this, food markets remain vulnerable to sudden downside risks, with issues such as commodity price volatility, disease outbreaks and [difficult-to-predict] weather. Such issues could lead to an immediate deterioration of business profitability, in an industry characterized by thin margins for most producers and retailers.
“At the same time, consumer habits are changing, as the end-client increasingly demands full transparency. Widespread distrust has increased the need for food and drink manufacturers to be more transparent about their ingredients, production processes and supply chains.”