Industry Analysis & Industry Trends
Over the past five years, the Potato Chip Production industry has grappled with major shifts in downstream consumption patterns, the rising cost of key raw ingredients and increased competition from substitutes, imports and private-label products. The ongoing rise in health consciousness has encouraged a general shift towards healthier eating patterns and a decline in popularity for unhealthy snacks such as potato chips, which are considered high in fat and salt. Due to these trends, industry revenue is forecast to decline by 1.0% annualised over the five years through 2013-14. The increase in health consciousness has also made the industry particularly vulnerable to the threat of healthy snack food substitutes such as fruit and nut bars or wholegrain crackers... purchase to read more
Industry Report - Starting a New Business Chapter
The most significant barrier to entry for prospective industry participants is capital investment costs. As a substantial part of the chip production process is automated, entrants need to seek out financing options. However, the risk of losing money if the venture fails means that the cost of financing will not only be high but willing lenders will also be hard to find. While the capital may be sold to another producer, the potential for large losses is high as the market for such specific capital equipment is relatively illiquid.
Besides raising the funds required to enter the industry, industry operators have to compete against established names in the market... purchase to read more