Explaining Historic Food Price Increases: Food Products Become Most-Sourced Category on Xometry’s Thomasnet.com

Rhea-AI Summary

Xometry’s Thomasnet.com has reported a significant surge in sourcing for food products, now the most-sourced category. In Q1 2022, food products saw a month-over-month increase of 1,364% for food bags, 663% for foodservice packaging, and 178% for food processing equipment due to supply chain disruptions, inflation, and international conflicts. This development marks food products as a high-demand sector alongside aerospace and automotive.

Shawn Fitzgerald, President of Thomas, notes that the data reflects ongoing challenges in food production amidst historic inflation and geopolitical tensions.

Positive

• Food products became the most-sourced category on Thomasnet.com, surpassing steel and other high-demand industries.
• Sourcing of food bags increased by 1,364% month-over-month, indicating strong market demand.
• General foodservice packaging sourcing rose by 663%, showcasing growth in this segment.
• Machinery sourcing also saw a significant rise of 360%, reflecting broader industry expansion.

Negative

• Ongoing supply chain disruptions continue to pressure producers and manufacturers in the food sector.
• Historic inflation rates are impacting food production costs, posing challenges for stakeholders.
• International conflicts, notably Russia's war on Ukraine, are contributing factors to sourcing challenges.

• Major categories of food products – from bags to packaging to machinery – see triple-digit increase in sourcing on Thomasnet.com
• Supply chain issues, inflation and international conflict driving surging sourcing demand
• Food products now join other high-demand industries, including aerospace, automotive, and housing/construction
  

NEW YORK, April 14, 2022 (GLOBE NEWSWIRE) -- Food products now rank as the most-sourced category on Xometry’s Thomasnet.com, besting frequently searched terms such as steel, lumber, medical equipment and packaging in the aeronautics, automotive and housing/construction categories. The “Thomas Industrial Sourcing & Supply Chain Activity Snapshot” identifies the top sourced products and services sourced by Thomas’ 1.4 million North American registered users each quarter. 

In Q1 2022, food products captured the top spot for all sourced products, the result of ongoing supply chain disruptions, record inflation and now international conflict. Machining captured the top spot for sourced services. Thomas is a division of Xometry, the AI-driven digital marketplace that connects enterprise buyers with manufacturers globally.

Food products encompass: food bags, for which sourcing is up 1,364% month-over-month (March over February); general foodservice packaging, which is up 663% month-over-month; machinery, up 360% month-over-month, and food processing equipment, up 178%. In fact, the data shows a 29% difference in search volume between food products and steel, the #2 sourced product on Thomasnet.com. 

“The rapid rise in food products as the most-sourced category on Thomasnet.com reflects ongoing supply-chain disruptions, historic inflation and Russia’s war on Ukraine,” said Shawn Fitzgerald, President of Thomas, a Xometry company. “Over the last few years, we have tracked the category’s rapid rise, underscoring the continued growing consternation across every aspect of food production.

“Our data shows that producers, manufacturers and distributors within the broader food category are facing extreme sourcing pressure,” Fitzgerald continued. “The rapid ascent of food means the category now joins other traditionally high-demand industries, such as aerospace, automotive, housing/construction and others.”

The Thomasnet.com data comes on the heels of last week’s U.N. Food and Agriculture report, which revealed that food prices rose to their highest level since the global organization began tracking monthly changes in 1990.

To download the full report, please click here.

About Xometry
Xometry (NASDAQ:XMTR) powers the industries of today and tomorrow by connecting the people with the big ideas to the manufacturers who can bring them to life. Xometry's digital marketplace makes it easy for buyers at Fortune 1000 companies to access global manufacturing capacity, while also providing suppliers with the critical resources they need to grow their business. Xometry is home to Thomas, a leader in product sourcing, supplier selection and marketing solutions for industry, and the popular Thomasnet.com platform.

Media contacts:
Matthew.Hutchison@Xometry.com

FAQ

What is the significance of food products being the most-sourced category on Thomasnet.com?

Food products surpassing other categories like steel indicates a critical shift in sourcing priorities due to supply chain disruptions and inflation.

What were the month-over-month increases for food products in Q1 2022?

Food bags increased by 1,364%, foodservice packaging by 663%, and food processing equipment by 178%.

What are some factors driving the increased demand for food products?

Supply chain issues, record inflation, and international conflicts are major factors contributing to the increased demand for food products.

How does the sourcing demand for food products compare to other industries?

Food products now rank higher in sourcing demand than traditional high-demand industries like aerospace and automotive.

Who commented on the rise of food products in sourcing and what was said?

Shawn Fitzgerald, President of Thomas, remarked that the rise reflects serious sourcing pressures within the food production sector.