BEMA Intel

Questions about BEMA Intel or BEMA membership? Email Kelly Allen.

KEY TAKEAWAYS

BEMA Intel Industry Indicators

• In the first quarter of 2024, Commercial Aisle Bakery dollar sales for the quarter totaled $21.9 billion, a gain of 0.9% over the corresponding quarter in 2023. However, unit sales were down slightly 0.4% for the same period, continuing to suggest that increased prices due to high inflation have impacted consumer demand in the category.
• In the first quarter of 2022, In-Store Bakery dollar sales were up 1.9% to $4.9 billion compared to the corresponding quarter a year ago, with unit sales up 0.9%.
• The Grain-Based Foods Stock Index was down 5.4% in the first quarter of 2024, while the S&P 500 increased 15.2%.
• The Consumer Price Index for Bakery Products increased slightly at 0.9% in March 2024 compared to the previous year, following major increases in the CPI that began during the inflationary period in 2022.
• Baking ingredient costs for almost all categories tracked by Milling & Baking News’ Bakery Ingredient Indexes are on the decline. The index for cake donuts was down a substantial 31.1% in 2024Q1 compared to a year ago and down 28.9% for devils food cake. Ingredient costs for white pan bread continued to decrease 22.0% in 2024Q1 compared to a year ago. The only exception to cost decline is pasta, which saw increases of 36.7% compared to a year ago.
• Unemployment remains fairly low at 3.8%, and Unit Labor Costs are leveling out somewhat, with an increase of 1.9% for 2024Q1 compared to the same quarter a year ago.
• Flour production was up slightly at 0.7% in 2024Q1 compared to a year ago.

BEMA Intel Member Pulse Survey

• Equipment manufacturer industry outlook declined in 2024Q1, with 79% expressing a ‘positive’ outlook, compared to 85% in 2023Q4.
• In the area of company bookings, 21% of equipment manufacturers reported increased bookings in 2024Q1, down from 43% in 2023Q4.  A full 28% of equipment manufacturers reported decreased bookings in 2024Q1, up from only 16% in the fourth quarter of 2023.
• Attracting and retaining a quality workforce is the top concern for equipment manufacturers, with 55% citing it as a challenge in 2024Q1.
• Concerns over raw material costs have decreased significantly, with 36% of equipment manufacturers reporting concerns in 2024Q1, down from a high of 91% in 2022Q2. Concerns are also declining in the area of transportation/logistics (21% in 2024Q1 compared to a high of 78% in 2021Q4).
• Concerns about a weaker domestic economy and sales for products to U.S. customers is on the decline from the fourth quarter of 2023, with 36% of manufacturers citing this as a concern in 2024Q1.

Summary 2024 Q1