Industry Analysis & Industry Trends
Over the past five years, the Potato Chip Production industry has grappled with shifts in downstream consumption patterns, fluctuating costs of key raw ingredients and increased competition from substitutes, imports and private-label products. A rise in health consciousness has encouraged a shift towards healthier eating patterns for some consumers. This has made the industry vulnerable to the threat of healthy snack food substitutes such as fruit and nut bars or wholegrain crackers. However, strong brand loyalty and demand for premium flavours has offset any decline in popularity for potato chips, which are considered high in fat and salt, due to health concerns. IBISWorld forecasts that industry revenue will increase at an annualised 1.4% over the five years through 2015-16 to $1.06... purchase to read more
Industry Report - Industry Investment Chapter
The Potato Chip Production industry has a medium level of capital intensity. IBISWorld estimates that for every dollar paid as wages, industry operators require $0.32 to be invested into capital. The industry relies on expensive machinery and equipment such as industrial potato peeling, cutting, frying, drying, flavouring and packaging machines. These machines boost production volumes, maintain scale economies and minimise wage costs.
Smaller companies often rely on manual labour to track quality control in production and pack finished product. These smaller operators cannot adequately invest in sophisticated machinery and equipment to do these tasks, compared with major players such as Frito-Lay and Snack Brands Australia... purchase to read more