Now in its fourth year, the 2016 just-food Confidence Survey provides a snapshot of how the packaged food industry sees the year unfolding. just-food asked their readership of food industry professionals what they felt about some of the big issues facing them, their company and the food industry in 2016. This included hot topics in the food industry, including sustainability issues and the continuing growth of digital marketing and sales.

1. just-food
2016 Confidence Survey
How does the food industry view 2016?

2. What is the just-food 2016 Confidence Survey?
• just-food.com is the leading news, insight and research portal for
the global packaged food industry.
• We asked some of our senior food industry readership what they
thought 2016 would bring for their businesses and the sector.
• This document collates the findings of this research.

3. Revenue, pricing, costs, efficiency and profits
Financial Outlook

4. 53% of food industry professionals believe
consumer confidence will improve in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 122.
Q = “How do you view the outlook for consumer confidence in your key markets next year?”

5. 42% of businesses think their SALES will grow by no
more than 5% - yet 21% expect over 10% growth
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 109.
Q = “Do you expect your revenue to grow in 2016?”

6. A third of businesses expect PROFITS to grow by
more than 5% - but most see more modest growth
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 108.
Q: “Do you expect to grow profits in 2016?”

7. 84% of food businesses will be increasing
their focus on efficiency in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 110
Q: “Will you be increasing your focus on improving efficiency in 2016?”

8. The majority of efficiency gains will come from a
combination of internal and external efforts
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 109.
Q: “Will your efficiency gains come more from internal efforts, external factors or both?”

9. 69% of respondents expect costs to increase in
2016, with only 6% believing they will decrease
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 110.
Q = “Do you expects costs to increase or decrease in 2016?”

10. Over three-quarters of food businesses expect a
more challenging pricing environment in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 110.
Q = “Do you anticipate a more challenging pricing environment in 2016?”

11. Half of respondents plan to increase prices in 2016
with only 4% expecting to decrease prices
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 108.
Q: “How will you seek to change your prices in 2016?”

12. Investment levels, regions, emerging markets
International Development

13. 52% will increase their investment in international
development in 2016, no-one is planning a decrease
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 107.
Q = “Will you increase your investment in growing your business internationally during 2016?”

14. 45% will increase investment in Europe, 40% will
increase in Asia, and 28% increase in North America
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 83.
Q = “In which regions will you increase your international investment in 2016?”

15. 42% see India as the emerging market offering the
best opportunity for growth - China is next at 34%
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 77.
Q = “Which emerging market/s do you expect to offer greatest opportunities for growth during 2016?”

16. Volume of M&A, attitudes towards deals
Mergers and Acquisitions

17. 37% of respondents see more M&A opportunities
in 2016 - although most see parity year-on-year
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 100.
Q: “Do you expect there to be more M&A opportunities for your business in 2016?”

18. Just over a third of respondents expect to be
more willing to use M&A in 2016 to fuel growth
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 100.
Q: “Will your business be more willing to use M&A to grow in 2016?”

19. R&D spend, product launches, trends, competition, regulation
Innovation and New Product Development

20. Nine out of ten respondents plan to increase or
maintain their R&D and innovation spend in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 100.
Q = “What will your R&D and innovation expenditure be in 2016?”

21. Half will launch products at the same rate as 2016 -
although 41% intend to launch more than in 2015
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 98.
Q = “How many new products do you plan to launch in 2016?”

22. Almost two-thirds expect ‘Health’ to drive their
innovation in 2016, then ‘Quality’ and ‘Convenience’
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 100.
Q = “What key trends do you expect to drive your innovation initiatives in 2016?”

23. In 2016, most respondents expect to experience
more disruption from new, smaller market entrants
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 101.
Q: “Do you expect competition from smaller, up-and-coming companies to increase in 2016?”

24. ‘Food safety’ and ‘Health’ are seen as the areas
most likely to see more regulatory pressure in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 94.
Q = “In which areas do you expect to see more pressure from regulators this year?”

25. Expenditure on sustainability, key issues
Sustainability

26. Most intend to maintain spend on sustainability in
2016 - although 36% plan to increase expenditure
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 100.
Q: “How much will you spend on sustainability initiatives in 2016?”

27. Waste reduction, improved water use and
packaging will lead sustainability initiatives in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 97.
Q = “On which key sustainability issues do you expect to focus in 2016?”

28. Growth expectations, areas of opportunity
Foodservice

29. Two-thirds of respondents plan to grow their
presence in the foodservice channel in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 100. Q: “Will you increase investment in
growing your business's / brand's presence in the foodservice channel in 2016 compared to 2015?”

30. ‘Supermarket foodservice’ and ‘Quick-service
restaurants’ top two target areas for growth in 2016
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 81.
Q = “In which parts of the foodservice channel will your business look to grow its presence in 2016?”

31. Areas of investment
The digital sphere

32. Standout area for digital investment is on social
media presence - with D2C in second place
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 85.
Q = “In which areas will your business or brand increase its investment in digital in 2016?”

33. In 2016, a third of respondents will grow their spend
on digital by 6% or more - only 6% will spend less
Source: just-food.com Confidence Survey, Nov 2015. Population size n = 91. Q = “Will you increase your
expenditure year-on-year on building your business's / brand's digital presence?”

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