Inflation in May rose to the highest level since December 1981. Prices rose 8.6% from the year-ago value. Food costs, a critical component of inflation, rose 1.2% in May and 10.1% year-over-year. As the consumer staples sector enjoys a constant demand regardless of their price, soaring inflation has kept the growth of the food and beverage industry buoyed.
Amid the COVID-19 pandemic, the top 25 companies in the sector generated $1.50 trillion in revenues in the past year, while the sector’s profits surged to more than $155 billion. On top of it, the First Trust Nasdaq Food & Beverage ETF (FTXG) has gained 5.5% over the past six months, largely outpacing the S&P 500 declines of 13.9% over the same period. The global food & grocery retail market was valued at $11.32 trillion in 2021 and is expected to grow at a CAGR of 3% between 2022 to 2030.
