Barclays warns food industry unlikely to see pre-pandemic commodity prices

Published 14/08/2025, 15:54
Barclays warns food industry unlikely to see pre-pandemic commodity prices

Investing.com - Barclays has issued a report stating that a return to pre-pandemic commodity price levels in the food industry is "unrealistic" due to structural labor costs. This assessment aligns with broader commodity market trends, as evidenced by SPDR Gold Trust (GLD) showing a robust 27.7% year-to-date return and trading near its 52-week high of $317.63.

The investment bank highlighted that many food suppliers remain reluctant to commit to longer-term contracts amid economic uncertainty and questions about consumer spending power.

According to Barclays’ analysis, approximately half of restaurants and foodservice distributors experienced an increase in cost of goods sold (COGS) as a percentage of sales during the second quarter of 2025.

The report indicated that menu pricing likely matched or fell below company-specific commodity inflation rates during this period, creating margin pressure for industry participants.

Barclays also noted that some companies specifically mentioned tariffs as having a negative impact on their cost structures, further complicating the pricing environment for food industry operators.

In other recent news, there have been no significant earnings or revenue announcements, mergers, or analyst upgrades or downgrades reported for any specific companies. However, U.S. President Donald Trump announced that gold will not be subject to tariffs. This statement was made on his social media platform, Truth Social. The announcement could have implications for investors interested in commodities, particularly in the precious metals market. While the statement does not directly impact a specific company, it may influence broader market strategies and investor sentiment related to gold. No additional company-specific developments were noted in the recent updates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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