FMCG Industry Business Confidence Report H1 2016

1 Introduction

1.1 Definitions

1.2 Methodology and sample size

1.3 Respondent profile

2 Economic State, Growth Prospects and Consumer Confidence

2.1 Existing economic environment

2.1.1 Over one-third of respondents highlight the current global economic conditions as stable

2.1.2 In total, 40% of FMCG industry executives indicate favorable or very favorable economic conditions in North America

2.1.3 Executives who operate in North America and Europe have more favorable opinion about their region

2.2 Industry and company growth outlook

2.2.1 The majority of respondents expect an optimistic outlook for company growth prospects in H1 2016

2.2.2 Overall, 42% of industry executives are neither optimistic nor pessimistic over growth prospects for the industry in H1 2016

2.2.3 The positive outlook towards company and industry growth is highest among respondents with business operations in Asia-Pacific

2.3 Expected change in consumer confidence

2.3.1 In total, 49% of executives project no change in consumer confidence over the next six months

2.3.2 The majority of respondents with business operations in Asia-Pacific and North America anticipate a significant increase in consumer confidence in H1 2016

3 Supplier Prices, Staff Headcount and Sales Performance

3.1 Supplier prices expectations

3.1.1 FMCG industry executives anticipate a slight increase in prices of semi-finished products and ingredients in H1 2016

3.1.2 On average, FMCG industry respondents project an increase of 2% in supplier prices for raw materials during H1 2016

3.1.3 Over one-third of industry executives foresee an increase of

0.1% to

3.99% in supplier prices for semi-finished products during the next six months

3.1.4 Overall, one-quarter of respondents operating in Asia-Pacific expect no change in supplier prices of packaging during H1 2016

3.1.5 On average, FMCG industry executives project an increase of

2.5% in supplier prices for ingredients over the next six months

3.2 Anticipated change in staff head count and sales projections

3.2.1 Respondents who operate in the Rest of the World anticipate the highest sales growth in H1 2016

3.3 Anticipated change in spend on key activities

3.3.1 Executives foresee an increase in expenditure on new product development and mergers and acquisitions over the next six months

4 Business Concerns and Organizational Priorities

4.1 Level of concerns and expected impact

4.1.1 Economic, industrial, and societal issues can adversely impact operations, reduce profitability, and force the restructuring of business strategies

4.1.2 The performance of developing economies is the biggest concern during H1 2016 for industry executives operating in Asia-Pacific and the Rest of the World

4.1.3 Survey respondents operating in Europe view the performance of the Eurozone and developing economies as the biggest worries over the next six months

4.1.4 Overall, 49% of global FMCG executives are concerned about the performance of developing economies during H1 2016

4.1.5 Rising levels of competition and the availability of substitutes will pose challenges for FMCG organizations over the next six months

4.2 Significance of potential business priorities

4.2.1 Over three-quarters of executives operating in North America and Europe indicate customer retention as the top priority for H1 2016

4.2.2 Respondents from across the globe intend to focus on protecting and growing market share over the next six months

4.2.3 Overall, 92% of executives who operate in Asia-Pacific highlighted focus on new product development over the next six months

5 Appendix

N/A

Figure 1: Profile of Respondents

Figure 2: Global Business Outlook – Key Takeouts

Figure 3: Current economic condition – Overall

Figure 4: Current Economic Condition – Region

Figure 5: Current Economic Condition – Those Who Operate and Do Not Operate in a Region

Figure 6: State of the Economy- in Their Words-1

Figure 7: State of the Economy- in Their Words-2

Figure 8: Growth Prospects and Consumer Confidence: Key Takeouts

Figure 9: Industry and Company Growth Prospects – Overall

Figure 10: Industry and company growth prospects – Overall – In detail

Figure 11: Industry and company growth prospects – Region

Figure 12: Anticipated variation in consumer confidence – Overall

Figure 13: Anticipated Variation in Consumer Confidence – Region

Figure 14: Supplier Prices and Consumer Confidence: in Their Words

Figure 15: Supplier Price and Expenditure: Key Takeouts

Figure 16: Category Wise Supplier Prices Highlights

Figure 17: Projected Change in Supplier Prices – Raw Material – Overall and Regional

Figure 18: Projected Change in Supplier Prices – Semi-Finished Products – Overall and Regional

Figure 19: Projected Change in Supplier Prices – Packaging – Overall and Regional

Figure 20: Projected Change in Supplier Prices – Ingredients – Overall and Regional

Figure 21: Staff headcount and sales outlook – Regional

Figure 22: Expenditure Projection on Key Activities – Overall

Figure 23: Priorities and Concerns: Key Takeouts

Figure 24: Concerns: Overview

Figure 25: Top Five Business Concerns – Region

Figure 26: Business Concerns – Regional Highlights

Figure 27: Business Concerns – Overall and Regional – A

Figure 28: Business Concerns – Overall and Regional – B

Figure 29: Top Five Organizational Priorities – Region

Figure 30: Organizational Priorities – Regional Highlights

Figure 31: Organizational Priorities – Overall and Region