More than three quarters of food industry executives in a recent survey say they have been passing increased costs along to their customers.
The survey by Mazars showed that 78% of respondents say they have raised their own prices to recover at least some of their increased costs. However, only 2% said they have passed along 100% of their costs. A plurality of 25% says they passed along only 5% to 9% of their additional costs; the next largest segment, at 20%, says it was 10% to 29%.
Presented with a list of potential concerns for the future, the overwhelmingly most popular choice, at 54%, was “shipping and container costs and pier fees.” Tied for second, at 39% each, were “rising commodity costs” and “improving supply chain.”
In other survey highlights:
- 83% expected sales to increase in 2022;
- 48% selected “plant-based options” as the food trend most likely to have a positive impact on sales in 2022;
- 52% reported increasing salaries to retain or attract employees.
“The results from the latest Mazars survey highlight four major trends that will impact the food and beverage industry over the next few years: health and wellness, convenience, sustainability, and demographic shifts,” Brian Choi, CEO of The Food Institute, said in a statement included with the report.