Bakery operators are forecasting a prosperous 2024, according to a recent survey conducted by L.E.K. Consulting and Houlihan Lokey. Despite consumers tightening food budgets, the bakery sector remains resilient with 53% of executives projecting significant revenue increases, and 74% anticipating substantial profit growth.
Key findings from the survey include a strong expectation for revenue and volume growth. A remarkable 95% of surveyed bakery executives foresee volume increases in the coming year. Additionally, 58% of them are planning to boost capital investments, with a focus on expanding capacity and enhancing automation.
In terms of market activity, 87% of bakery operators are currently exploring mergers or acquisitions. This reflects a notable trend of consolidation within the industry.
However, the survey also identifies several challenges facing the sector. Labor shortages and rising ingredient costs are significant concerns, prompting bakery operators to concentrate on improving operational efficiency and driving innovation.
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Joseph Clarke
Editor, International Bakery
Tel: +44 (0) 1622 823 920
Email: editor@in-bakery.com
