North American Food & Beverage Industry to See Steady, but Slower, Growth in 2016

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. and Canadian Food & Beverage Industry is expected to see "slow but stable" growth in 2016, following a period of strengthened investment in new-build projects, according to Randy Godet, Industrial Info's VP for global research in the Food & Beverage Industry. Industrial Info is tracking more than $30 billion in project activity in the industry.

Click on the video below to listen to Godet discuss the outlook for the U.S. and Canadian Food and Beverage Industry.


Godet noted that the dollar value of grassroot construction kickoffs in the U.S. and Canada was "fairly consistent" from 2010 through 2013, but began to climb considerably in 2014 as food manufacturers invested in new plant construction. In particular, the number of new-plant construction starts more than doubled from 2013 through 2015.

However, he warned that 2016 may not see the same level of investment, as some sectors try to avoid oversaturation and individual manufacturers take a break from a long period of build-out.

As usual, the U.S. Great Lakes region ranks highest in capital expenditures and the number of projects in the Food & Beverage Industry. But the Midwest, which is the bedrock of the U.S. agricultural sector, is not far behind, while Texas carries much of the growth in the Southwest.

The U.S. agricultural sector is particularly important, as its growth reflects the record grain harvest seen over the past two years. The sector also is seeing stronger business overseas, with more calls to export grain, especially to countries that are experiencing water shortages. Companies are expanding their handling and processing capacities to meet the growing demand.

Among the other sectors, beverages is expected to experience growth in craft brewing, while poultry-processing facilities likely will see a series of expansions and upgrades.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at https://www.industrialinfo.com/.