Key Business Outlooks For 2024 (3/10): Felipe Ruano, ASEMAC

The year 2023 has brought more international turmoil, supply chain disruption and historic inflation all over the globe, putting a lot of pressure on the baking industry. Concerns about the availability of raw materials, the cost of energy, transport capacity, regulations, labor shortage and purchasing power had companies and professionals worried and looking for solutions.

That is what we see in these interviews with top managers from the most important industry players: the industry fought back and invested in research and development to provide sustainable solutions that address these challenges.

For 2024, representatives of some of the most important equipment and ingredients manufacturing companies talk in unison about sustainability, automation, energy-saving technology, traceability and working for the customers, to make sure their access to good bakery products is unhindered by the setbacks of the world. None of the viewpoints shared with us is lacking in hope, an essential attribute for a long-term winning business.

Conventional food production systems have enjoyed uninterrupted growth over the last few decades. While this trend is expected to continue in the short term, resource constraints may dampen expansion in the long term. Furthermore, the sector is increasingly ripe for disruption.

It is up to the bakers, transporters and retailers to find the right way to stay profitable and capitalize on the market opportunities that await them in 2024.

Felipe Ruano, President of the Spanish Association of the Bakery, Pastry and Confectionery Industry (ASEMAC)

Considering the market volatility, the bottleneck of resources, the energy crisis, the increasing prices and workforce scarcity, what does this past year look like for your company when you draw the line? 

The year 2023 has not been easy, especially due to the high inflation that has affected the food sector in Spain. The companies that are part of ASEMAC have made great efforts to try to minimize its impact on the final consumer. All in all, we have managed to maintain the production of frozen doughs for bakery throughout 2023 and we have increased production of pastries, something that we consider a success.

What are your expectations for next year, keeping in mind the legacy of 2023, but also the current challenges? 

It is very difficult to make a reliable estimate, considering the geopolitical instability and the fact that, increasingly, we are faced with consumption factors that we can hardly control. However, we hope that 2024 will be a year of consolidation for our industries in which, little by little, investments in R&D that had to slow down in previous years will be recovered.

How do you estimate the market will evolve and what is your priority list for 2024?

For years now, the consumption of bakery products in Spain has been declining, while the pastry segment is now growing. Our priority is to work to reverse the trend in bread consumption and consolidate the growth of the pastry segment with products that adapt to consumer needs.

Where did the growth opportunities come from and what is the most important lesson you have learned in recent times? 

Our industry, like many others in Spain, is closely linked to the evolution of tourism, whether internal or external. Last year was a very good year for tourism in our country, something that has helped our companies continue to grow. We must pay attention to the needs and tastes of these consumers, and we must be able to continue attracting visitors to Spain. That will be very good news for the baking and pastry industry.

What do you consider to be the most valuable asset you have in 2024 as a company?

The value of associations like ours is, not only to defend the business interests of the food industry that comprise it, but also to address the concerns of our associates, offering the best information that helps them continually adapt to new regulations. That is what we have been doing over the last few years and it is what we hope to continue doing from now on.

As part of your growth strategy, how do you prioritize your investments versus your R&D efforts?

Read the rest of the story in the January / February edition of European Baker & Biscuit.