Industry Analysis & Industry Trends
Volatile input prices, changing consumer trends and a saturated market are just some of the changes facing the Snack Food Manufacturing industry. Over the five years through 2014-15, volatile commodity prices, rising competition and increasingly health-conscious consumers switching to healthier alternatives are expected to constrain industry revenue growth. Over the five years through 2014-15, industry revenue is expected to increase by an annualised 1.3% to total $2.4 billion. In 2014-15, revenue is expected to increase by 1.6%.
The industry's major players have faced falling profit margins, increased competition from private labels and stagnating domestic demand, particularly in the salty snacks segment, which has historically been the most profitable... purchase to read more
Industry Report - Industry Investment Chapter
The Snack Food Manufacturing industry is characterised by a medium level of capital intensity. For every dollar paid as wages, $0.29 is required for investment into capital. Industry players, especially larger scale operators, rely heavily on automated machinery for mass-market production of snacks. However, labour functions are still relied upon during certain stages of production, especially for higher value premium goods. In most cases, factory labour is employed to monitor the operation of machinery, track production quality control and pack the finished product. The wide-scale use of industrial mixers and ovens significantly reduces the industry's reliance on labour.
Over time, the level of capital intensity has been rising... purchase to read more