Unlocking Opportunities: Essential Insights from Grassi’s 2025 Food & Beverage Survey on Growth and Challenges | ROI-NJ

The food and beverage industry in New York and New Jersey is stepping into 2025 with a positive outlook. According to Grassi’s latest Food & Beverage Survey, business leaders are adapting to economic challenges by embracing technology and refining their strategies. Insights from 169 industry decision-makers point to a strong performance in 2024, setting the stage for growth in the coming year. Let’s break down the key findings for food and beverage executives.

Positive Growth Driving Optimism

Despite economic challenges, the food and beverage sector ended 2024 on a high note. Over two-thirds of companies surveyed saw revenue growth, with many experiencing increases of around 20%. Profitability was strong as well: 56% of companies reported profit increases, largely due to investments in technology and operational efficiency.

Looking ahead, an impressive 87% of respondents expect revenue growth in 2025. Companies that are expanding distribution and embracing remote selling are leading this trend.

Facing Economic Pressures

Challenges remain. For 42% of respondents, economic uncertainty is a top concern. Rising interest rates and tariffs are also causing headaches. A staggering 90% of companies anticipate higher operating costs in 2025, predicting increases of 3-5%.

To tackle these rising costs, businesses are acting quickly—nearly half are seeking cheaper suppliers or renegotiating contracts. Price hikes are also on the table, with 85% of companies raising prices in 2024, usually between 1-4%.

Investing in Technology

Technology is the backbone of future growth. Two-thirds of industry leaders plan to expand their use of AI and supply chain management tools in 2025. Investments in ERP systems, automation, and digital tracking tools are also gaining traction.

With the increasing threat of cyberattacks, more than half of companies are prioritizing data security measures, like dual-factor authentication.

Navigating Workforce Challenges

Workforce management remains critical. While staffing shortages are less of a concern than before, 57% of companies are still worried about keeping their workforce stable.

Businesses are using flexible scheduling and financial incentives to attract talent. Notably, those that invested in automation and expanded their labor pool had better profit growth.

Building Resilient Supply Chains

Supply chain risks continue to pose challenges, with 63% of top-performing companies identifying it as a major hurdle in 2024. To combat this, many are diversifying suppliers and automating inventory management.

Some companies are adopting bulk purchasing to remain agile, moving away from just-in-time inventory systems as they adjust to market realities.

Investing for the Future

The saying “you have to spend money to make money” rings true here. A striking 83% of companies plan to increase capital expenditures in 2025. Their focus areas include expanding production lines, upgrading technology, and improving facilities.

This focus on investment is all about boosting efficiency and launching innovative products.

Looking Forward

As leaders prepare for 2025, they are keen on exploring new markets and leveraging AI strategies to enhance efficiency. However, they must also confront ongoing issues, such as high labor costs and competition.

Key concerns as the year approaches include economic uncertainty, high interest rates, and rising tariffs, all of which could impact costs and supply chains.

In summary, the food and beverage sector is gearing up for another exciting year. By staying adaptable and investing wisely, companies can navigate these challenges and seize new opportunities as 2025 unfolds.

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