2013-03-01 16:15:35 - New Food research report from Business Monitor International is now available from Fast Market Research
BMI Industry View
The outlook for the consumer sector in the Caribbean region remains subdued, as the region was especially hard hit by the global economic downturn. The Caribbean countries are particularly dependent on tourism levels to maintain their growth, leaving them especially vulnerable to economic weakness in major Western markets. Markets such as Jamaica, the Bahamas and Puerto Rico were among the first to enter recession and have been among the slowest to recover, which has put downwards pressure on the propensity to spend and has led to a drop in demand. However, the region is slowly showing signs of recovery, and all of the countries covered in the Caribbean Food & Drink report were expected to have registered positive
economic growth in 2012. There are also several markets, including the Dominican Republic and Trinidad & Tobago, which were much more resilient during the global crisis and have bounced back much more swiftly, with significant pockets of opportunity remaining in the region.
Full Report Details at
- www.fastmr.com/prod/541166_caribbean_food_drink_report_q2_2013.a ..
Headline Industry Data (US$)
2012 food consumption per capita:
* Bahamas: US$1,799
* Barbados: US$1,216
* Dominican Republic: US$236
* Jamaica: US$306
* Puerto Rico: US$981
* Trinidad & Tobago: US$903
Forecast 2013 food consumption per capita growth: * Bahamas: +0.8%
* Barbados: +4.3%
* Dominican Republic: +2.5%
* Jamaica: +3.8%
* Puerto Rico: +2.6%
* Trinidad & Tobago: 1.4%
Forecast food consumption per capita compound annual growth rate (CAGR) 2012 to 2017:
* Bahamas: 1.0%
* Barbados: +3.3%
* Dominican Republic: +2.6%
* Jamaica: +4.6%
* Puerto Rico: +3.5%
* Trinidad & Tobago: +3.0%
Key Company Trends
Salada Looking Abroad For Growth: In February 2013, Jamaica's largest coffee processing firm Salada Foods announced that it is now focusing on increasing exports as an integral part of its growth strategy, with exports forecast to grow by at least 20% in 2013 alone based on new distributorships the company is seeking. The company identified China as a market that has experienced significant growth in recent years, and offers strong potential. Salada also plans to target other Asian countries for growth. In 2013 the company is also planning to launch two new products under the Jamaican Ginger Tea label - one with sugar added, and a sugar-free alternative to attract health-conscious consumers.
Burger King Partners With Nestle: In late 2012 Burger King restaurants announced a new partnership with Nestle through which Nestle will supply the restaurants with specialty coffee in the Caribbean and Latin America region. Under the agreement with Nestle Professional, the menus at the Burger King restaurants will feature the Nescafe Milano system. Jose R. Costa, vice president of marketing for Latin America/ Caribbean Region, Burger King Worldwide said that 'Specialty coffee is a huge area of growth' for the company and a major focus for the Burger King brand in this region where coffee consumption is an important part of daily life.
Key Risks To Outlook
Outlook Differs Throughout the Region: Given that the Caribbean is not a homogenous food and drinks market, there are both upside and downside risks depending on the country. For example, given that tourism continues to account for a significant proportion of economic activity in Jamaica, improved international perceptions of the island are likely to bode well for real GDP growth and thus also for consumer outlook.
On the domestic front, this is likely to encourage greater investment into both hotel and transport infrastructure from the private sector. While huge structural reforms in Puerto Rico, one of the largest regional food and drinks markets, have dramatically improved the island's fiscal outlook, growth is set to remain weak, especially as the authorities aim to rein in public sector spending.
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
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