Supply chain issues and labor shortages have led to a significant increase in food prices. However, a steady demand for packaged food products should benefit companies in this space by passing on their rising input costs to consumers. Also, changing consumer tastes and rapid digitalization have been helping food companies to generate rising sales by introducing new products in partnerships with industry leaders.
Investors’ interest in this space is evident from the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 5.1% gains over the past three months versus the SPDR S&P 500 Trust ETF’s (SPY) negative returns. The global packaged food market is expected to grow at a 5.2% CAGR to reach $3.41 trillion by 2030.
