Consolidation and private-label growth trending in food-retail sector

Supermarkets are seeking to reduce the number of suppliers, modify presentation and packaging to increase consumer appeal, and cut storage and distribution costs.

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According to Global Trends Impacting the Market for Packaging Machinery 2018, a new report by PMMI Business Intelligence, price pressure within the food and beverage sectors is forecast to be the highest of any industry, driven by pressure from customers further down the supply chain.

The grocery market has faced significant consolidation in recent years, with grocery giants such as Albertsons, Kroger, Woolworths and J Sainsbury’s acquiring regional or mid-sized competition in an effort to avoid losing market share and increase economies of scale.

This consolidation trend is expected to continue for traditional brick and mortar stores as they are increasingly threatened by competition from non-traditional retailers attempting to break into this market - such as Amazon - or pharmacies such as CVS stocking more healthy and convenient food items.

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