BMI believes that, given the substantial headwinds facing the Venezuelan economy, the country's real GDP will expand slowly over the coming years, at 2.0% in 2013 and 1.5% in 2014. Despite enormous natural resource wealth, the economy's outlook will be dimmed by poor macroeconomic governance, high inflation and significant political uncertainty. Furthermore, we expect household consumption to continue to be constrained by high inflation, which has substantially eroded purchasing power.
Headline Industry Data (US$)
Per capita food consumption forecast 2014 to 2018 = +74.9%.
Alcoholic drink sales forecast 2014 to 2018 = +73.6%.
Soft drink sales forecast 2014 to 2018 = +72.1%.
Mass grocery retail sales forecast 2014 to 2018 = +78.9%.
Key Industry Trends And Developments
Inc reased Agricultural Production Has Little Impact O n Food Shortages : Venezuela's Ministry of Agriculture and Lands has announced that domestic agricultural production grew by 10.6% year-on-year in 2013, with increased production of maize, sugarcane, potatoes and vegetables spearheading this growth. Despite this, food shortages continue to plague the country as supply of raw material for the domestic food industry fell some way short of demand.
Price Controls Likely To Include All Consumer Goods : In November 2013, the Venezuelan National Assembly granted President Nicolás Maduro the power to rule by decree, bypassing the need for congressional approval for enacting new laws for a period of 12 months, in a move which is sure to rattle the private sector further and add to the growing apprehension about the country's direction under the new president. In a speech outlining his intentions as to how he will use the expanded powers, Maduro said he would 'launch a war' against corruption and unscrupulous business owners, whom he blamed for the country's soaring inflation. In early 2014, the president's intentions became clearer with the introduction of a cap in company profits at 30%....
The Venezuela Food & Drink Report features Business Monitor International (BMI)'s market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.
BMI's Venezuela Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Venezuela.
- Benchmark BMI's independent food and drink industry forecasts for Venezuela to test other views - a key input for successful budgeting and strategic business planning in the Venezuelan food and drink market.
- Target business opportunities and risks in Venezuela through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
BMI Industry View
Summary of BMI's key industry forecasts, and views, covering food and drink manufacturing and consumption and the retail market.
Business Environment Ratings
BMI's Food & Drink Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors, food and drink manufacturers and mass grocery retailers.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the food, drink and mass grocery retail sectors, and within the broader political, economic and business environment.
BMI's food chapter is divided into sections such as Meat, Fish, Confectionary, Dairy and Canned Foods, and provides insight into a market's food industry, centred on a forecast to end-2018 for the sector. The chapter includes the following elements:
Industry Forecast Scenario - Historical data series and forecasts to end-2018 for growth of key indicators within a market's food industry. Including consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
Industry Developments - A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
Market Overview - An overview of the structure of the market, introducing the key players and discussing underlying trends.
Segmented the same way as BMI's food chapter, the drink section provides insight into the market's drink industry, centred on a forecast to end-2018 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.
Mass Grocery Retail Forecasts
Segmented the same way as BMI's food and drink chapters, the mass grocery retail section provides insight into a market's grocery retail industry, centred on a forecast to end-201 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown for the organised retail sector versus the traditional sector, among others.
Competitive Landscape & Profiles
Illustration of the industry via rankings tables comparing revenues, number of outlets and number of employees. BMI analyses each company's market position, business strategies and investment potential.