Significant revenue growth for the food industry in Q3

The food industry achieved robust revenue growth in the third quarter. Compared to the same period last year, revenue increased by over 9 percent. This marks the sector’s strongest performance in 18 months, following a prolonged period of declines. For the fourth quarter, business owners remain largely optimistic about their revenue expectations, according to an analysis of recent CBS data by our editorial team.

Growth in both domestic and export markets

Revenue in the food industry rose by 9.3 percent, with growth evenly distributed between domestic and export markets. Domestic revenue increased by 9.7 percent, while exports saw a 9.0 percent rise. This marks a turnaround after a series of declines. The sector faced particularly tough times between Q3 of last year and Q1 of this year, with the lowest point in Q1 2024, when revenue fell by 9.3 percent. A slight recovery began in Q2, with a modest increase of 0.7 percent.

Price developments vary across sectors

In addition to revenue growth, sales prices in the food industry rose by an average of 2.8 percent. However, there were notable differences across sectors. The fruit and vegetable processing industry recorded the highest price increase at 8.2 percent, while the dairy industry showed a moderate rise of 1.3 percent. Conversely, price drops were observed in sectors such as edible oils and fats (-5.3 percent), meat processing (-4.9 percent), and milling (-3.3 percent).

More companies, but also more bankruptcies

The number of businesses in the food industry grew by 35 in Q3, bringing the total to 7,985. The bakery and pastry sector saw the largest increase, with 20 new businesses, bringing the total to 4,200. However, concerns persist as the number of bankruptcies surged. In total, 18 businesses went bankrupt, compared to just 8 in the same period last year. The bakery and pastry sector was hit hardest, with 9 bankruptcies in the third quarter.

Despite these challenges, food industry entrepreneurs remain optimistic about their revenue prospects for Q4. However, labor shortages continue to be a significant obstacle, as nearly a quarter of respondents indicated.