Industry Analysis & Industry Trends
Volatile input prices, changing consumer trends and a saturated market are just some of the challenges facing the Snack Food Manufacturing industry. Over the five years through 2015-16, volatile commodity prices, rising competition and increasingly health-conscious consumers choosing healthier snack alternatives are expected to constrain industry revenue growth. Over the five years through 2015-16, industry revenue is expected to increase by 4.0% annualised, to reach $2.0 billion. The high growth rate over the period 16 is overstated due to the low base year in 2010-11. In 2015-16, revenue is expected to decrease by 0.2% as pressures mount on the industry... purchase to read more
Industry Report - Industry Investment Chapter
The Snack Food Manufacturing industry is characterised by a moderate level of capital intensity. In 2015-16, for every dollar spent on wages, an estimated $0.25 is invested in capital. Industry players, particularly larger scale operators, rely heavily on automated machinery for mass-market production of snacks. However, labour is still relied upon during certain stages of production, particularly for higher value premium goods or niche snack products. In most cases, factory labour is used to monitor the operation of machinery, track production quality control and pack the finished product. The widespread use of industrial mixers and ovens significantly reduces the industry's reliance on labour.
Over the past five years, the level of capital intensity has been rising... purchase to read more