Spanish M&A sector to flourish in the PostCovid world
The reality that Covid-19 has brought with it leads managers of the food and beverage sector to think about corporate movements: 40% agree or strongly agree that a consolidation process will take place and 55% with that there will be an increase in alliances between companies, says a recent study from IESE. 90% of the respondents agree that the industry's supply chains will be shortened, probably because the pandemic has made it clear that the long supply chains that have characterized many industries in recent years are very fragile in the face of restrictions on the international movement of goods and supplies.
Also, eight consumption trends will influence the market in the years to come, according to the report.
1. Food safety (5.83 points in the survey): Consumer sensitivity to food safety was not an explicit and significant priority for the pre-COVID consumer, perhaps because it was taken for granted.
2. Healthy products (5.61 points): this is a trend reinforced by the interest in diet to strengthen the immune system.
3. Online shopping (5.58 points): the pandemic has also given a great boost to electronic commerce and its relative weight as a channel is expected to continue growing.
4. Price and cost reduction (5.52 and 5.42, respectively): despite confidence in the persistence of values associated with health and sustainability, respondents are convinced that the economic downturn associated with COVID -19 will persist until at least 2023.
5. Proximity stores (5.40): shopping in proximity stores with greater frequency and assiduity is here to stay.
6. Caring for the environment (5.39): clients seem to prioritize proposals that are sensitive to caring for the planet.
7. Commitment to the community (5,13): consumers opt for manufacturer brands and distribution chains in which they recognize a clear commitment to the community in which they operate.
8. National brands (5.06 points): the consumer prefers them to imported ones.
The impact of Covid-19 on foreign trade, which was clearly affected, although also unevenly. Thus, the sector's exports suffered a strong impact, with more than 45% of companies that carry out international sales reporting significant drops, and 25% reporting increases. On the other hand, only 24% of managers agree or strongly agree that there will be an increase in Spanish exports of products from the sector.
At the import level, almost 46% of the companies in the sector that habitually import inputs and products revealed a significant drop in their purchases, opposed by only 15% of those that reported an increase in their purchases abroad. In addition, only 3% state that they agree or strongly agree that there will be an increase in imports in the sector.
The report is based on the opinion of the business leaders of 185 companies related to food and beverages about the impact of Covid-19 in the sector and their companies, as well as their vision of the previous and new challenges posed by the pandemic.
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