Discover your next big idea at PACK EXPO Las Vegas this September
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries.
REGISTER NOW & SAVE

Food & beverage industry: ‘growth trickles’

Economically, supermarket and food-store sales have picked up since the first of the year, according to Brian Todd, president and CEO of The Food Institute (www.foodinstitute.com), Upper Saddle River, N.J.

Pw 45475 Gluttenfree

“This is some sort of return of an upward trend. But, unfortunately, most of that is being eaten up by inflation.” Also, consumers are very hesitant to open up their pocketbooks, he adds.

To cope with this, food & beverage manufacturers “may have gone to on-demand production where they can,” says Todd, a 32-year veteran of the industry. “This has probably impacted companies’ expansion plans, too.”

Manufacturers have had to become more creative. “Lots of manufacturers have had some success in producing more convenient packaging. There’s also smaller packages; for instance, the 100-calorie packages,” Todd says.

“As for new products, companies are more aggressively looking for true new ones,” Todd observes. “But that’s not some ‘Lite’ extension of an existing product, or a new flavor of a cereal.” The new products about which The Food Institute has been reporting are health-based ones—functional foods that have health benefits.

“Gluten-free products seem to be one of those new foods,” Todd says.

But, still the biggest current challenge to the industry ties in with the economy, Todd states. “We’re waiting for the economy to increase and waiting for consumers to spend more.” He laments that the industry was used to much more steady growth than it sees now—and that’s whether it was a 3, 4 or 5 percent increase. “But it’s just slowed down so much over the past three years. Growth trickles,” he says.

Annual Outlook Report: Automation & Robotics
What's in store for CPGs in 2025 and beyond? <i>Packaging World</i> editors explore the survey responses from 118 brand owners, CPG, and FMCG <i>Packaging World</i> readers for its new Annual Outlook Report.
Download
Annual Outlook Report: Automation & Robotics
Is your palletizing solution leaving money on the floor?
Discover which palletizing technology—robotic, conventional, or hybrid—will maximize your packaging line efficiency while minimizing long-term costs in this comprehensive analysis.
Read More
Is your palletizing solution leaving money on the floor?