United States Food and Drink Report Q4 2014

BMI Research
October 22, 2014
153 Pages - SKU: BMI5361596
Countries covered: United States

United States Food and Drink Report Q4 2014

The US economy will continue to strengthen in 2014, due to sustained improvement in the labour marketthat will fuel an acceleration in private consumption. We will continue to see positive - although slowing -fixed investment growth this year, and we believe the drag on growth from government expenditure willlessen compared to last year. However, we have revised down our 2014 growth forecast from 2.4% to 2.1%due to a particularly weak Q114. Indeed, real GDP contracted at a seasonally-adjusted, annualised rate of2.9% in the first quarter of the year, the largest contraction during a period of economic growth in decades.That said, the downward revision is attributable to base effects from Q1 and does not suggest the start of amajor slowdown. We believe many of the contributing factors have already begun to recede, suggesting amuch stronger second quarter.

Headline Industry Forecasts (local currency)

2014 per capita food consumption = +2.0%; five-year compound annual growth rate (CAGR) to 2018 =+4.1%.

2014 alcoholic drinks value sales = +3.7%; CAGR to 2018 = +3.5%.

2014 soft drink value sales = +3.1%; CAGR to 2018 = +1.9%.

2014 mass grocery retail sales = +2.9%; CAGR to 2018 = +2.5%.



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