ANZ is optimistic about the outlook for the food, beverage and agriculture sectors in 2024, although there are likely to be some challenges businesses in the segment will need to confront.
While the inflationary environment appears to be stabilising around the world, it’s likely consumer behaviour will continue to be driven by uncertainty in 2024 – and that means sensitivity around price.
Consumers are likely to move towards more cost-effective options like plain labels or quick-service dining, with a focus on value.
As the FB&A sector grapples with these pressures, the successful companies are likely to be the ones that can optimise their assets and improve productivity to remain competitive.
Should inflation stabilise to a point the US Federal Reserve begin to lower interest rates, the knock-on effect around the globe could lead to an increase in foreign investment into Asia, including merger and acquisition activity.
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After a transformative 2023 across markets and the economy, businesses in the Asia-Pacific region are facing in to the challenges and opportunities of 2024.
The ongoing speed of digitisation, shifting supply chains, and continued geopolitical uncertainty will all play a role in the macroeconomic environment.
Over the coming weeks, ANZ Institutional will bring you select insights from our broad range of subject-matter experts, helping your business better prepare for 2024 and beyond.
An increasing focus on sustainable practices is likely to deepen the emphasis on ethical sourcing and regenerative agriculture in 2024. Amid this shift, businesses will need to balance innovation with regulatory compliance, as well as address the complexities of supply chain visibility.
Elsewhere, the rise of technologies such as artificial intelligence and agtech will continue in 2024, beefing up production processes, streamlining supply-chain management and boosting cybersecurity as the industry becomes increasingly digital.
Amid all these themes, volatility driven by geopolitics, the impact of climate change on food security and the push toward net-zero carbon will continue.
At ANZ, we are optimistic about the resilience of businesses in the FB&A sector heading into 2024, and confident with the right touch these challenges can be turned into opportunities.
Sherrie Banks is Head of FB&A, International at ANZ Institutional
