Food Industry Will Experience Solid Growth in 2021

After suffering a $125 billion decline (-8%) in 2020 due to the dramatic $220 billion (-27%) downturn in foodservice, Pentallect, a leading food industry consultancy, forecasts that food industry sales will increase by $145 billion, or 10%, in 2021. Pentallect attributes the rebound to a sharp second half of the year recovery in foodservice following anticipated vaccine rollouts and ongoing strength in many retail sectors. Bob Goldin, a Pentallect partner, says “quick-service restaurants generally held up well but other foodservice segments, including full-service restaurants, have been devastated by the effects of the pandemic. Next year we are guardedly optimistic that foodservice will begin a multi-year rebound as effective public health measures become more widespread.” 

Source:  Pentallect Inc. research

Rob Veidenheimer, Pentallect’s president, adds that “while there is clear evidence of pent-up consumer demand for foodservice, many retailers have proven to be highly effective in meeting consumer demands during the pandemic and we expect them to continue to benefit from increased customer loyalty.”  Veidenheimer notes that online, club stores and limited assortment stores have experienced accelerated growth which he believes is sustainable.

Pentallect forecasts that the food industry will continue to experience above-average growth beyond 2021 as the foodservice channel continues to rebound, while the retail channel sustains moderate momentum in the post-pandemic economy.

About Pentallect Inc.

Pentallect is a strategic consulting and business improvement firm that provides an extraordinary breadth of food industry knowledge, drawing on vast food business management experience and broad networks of relationships throughout the supply chain for manufacturers, operators and distributors. The team leverages its expertise to conduct in-depth assessments of clients’ business strategies, structures, sales and marketing efforts, supply chains and spending/profitability to provide guidance and actionable insights that will have a direct P&L impact. For more information, visit http://www.pentallect.com or call at 888-651-3104.

Source: Pentallect Inc.