Grassi Releases Food & Beverage Benchmarking Survey Results Revealing Industry Optimism and Growth
NEW YORK (April 4, 2024) – Grassi, a leading provider of advisory, tax and accounting services, today announced the results of the 2024 Food & Beverage Benchmarking Survey. The survey of food and beverage manufacturers in New Jersey and New York shows industry leaders are optimistic, with 84% indicating they expect revenue and profit to increase in 2024.
In conjunction with the New Jersey Food Processors Association (NJFPA), Grassi surveyed 122 executives in the sector and conducted several in-depth focus groups to assess the state of the industry, identify trends and gather key industry opportunities and challenges for 2024.
Key takeaways from the report include:
- 71% of survey respondents saw revenue increase in 2023, with an average growth rate of 16%.
- 60% saw increased profits in 2023, with an average of 11% growth. Last year, companies that had profit growth focused on improving operations and cutting costs instead of raising their prices.
- The top three distribution strategies in 2023 were improving customer service (46%), increasing sales force (41%) and targeting new distribution channels (41%).
- Executives’ top concerns in 2024 are higher labor costs, economic uncertainty, increased competition, increased input costs, and technology and automation challenges.
- 80% expect to increase capital spending in 2024, an increase of 11% over the year prior, with companies citing expanding production lines, investing in technology, and enhancing facilities as the top three investment priorities.
- In 2024, the majority of survey respondents said they will focus on developing new products, improving operations and investing in automation and technology.
“We are pleased to partner again with NJFPA to provide this valuable benchmarking survey, which offers critical insights into industry trends, opportunities, and how the most profitable companies are investing,” said Robert Grote, Grassi’s Manufacturing & Distribution Practice Leader. “The sector is extremely optimistic, with many businesses focusing on critical and impactful operational changes to continue to boost revenue and profitability, like investing in automation and technology.”
“This year’s survey findings demonstrate that food and beverage companies continue to see growth and profits, despite pricing volatility, inflation and higher labor costs,” said Sam Pipitone III, NJFPA President and Vice President of F&S Fresh Foods. “Companies having success are putting more time and resources toward improving productivity, improving marketing and sales and identifying opportunities to streamline processes, which signals greater investments into critical areas.”
A complete copy of the survey report is available for download here.
To speak with a Grassi Manufacturing & Distribution professional, please contact us here.
