According to global credit insurer, Atradius, challenges in the U.S. include rising commodity, energy, labor and transport costs
A number of downside risks are expected to pose major challenges to the global food and beverages sector this year, according to the global credit insurer Atradius in its latest “Food & Beverages Industry Trends” report.
Sharp increases in commodity and energy prices, labor shortages, transport issues and the ongoing spread of the coronavirus pandemic could jeopardize the profitability of major industry subsectors over the coming months. In addition, consumer habits are changing as the end-client increasingly demands full transparency about their ingredients, production processes, and supply chain. All this could subsequently strain profit margins within a fiercely competitive industry, where the bargaining power of major retailers and discounters is very strong.