In 2023, global economies will continue to face multiple macroeconomic headwinds, including geopolitical uncertainties, inflation and tightened financial conditions. Global economic growth is expected to further slow, while cities will witness subdued consumer spending growth.
Global inflationary pressures continue to ease in Q4 2022. Under the baseline scenario, global inflation is forecast to reach 8.9% in 2022 and then fall to 6.2% in 2023. Slower economic growth and consequently falling B2B demand for manufactured goods, stabilisation of commodity prices and improvements in global supply chains are helping to cap inflation growth.
The worsened economic outlook and energy price shocks are forecast to weigh on the global manufacturing sector in 2023, with industries with high energy intensity and highly reliant on investment demand being the most vulnerable. However, despite the clouded outlook, global supply chain problems are forecast to ease in 2023 and provide relief to the global manufacturing sector. Ongoing production reshoring efforts and tight labour markets are also forecast to support faster investment growth in digital and production automation tools.
A follow up to an earlier piece on The Rise of Ingredient-Led Beauty, we continue the conversation, focusing on two specific areas: botanicals and functional fragrance ingredients.
We have identified key factors that will continue to shape food commodity markets, including commodity price volatility, uneven development in food demand, shifts in global supply chains, climate change and sustainability pressures.
Euromonitor International forecasts that Latin America will be the region with the highest rate of inflation in 2022 at 15.1%. Consumers are generally expected to exhibit increasingly price-sensitive behaviour when shopping for home care products. They are expected to purchase in bulk and look for promotions and discounts more frequently.