Industry Analysis & Industry Trends
Operators in the Snack Food Manufacturing industry have faced changing consumer preferences, volatile input prices and increasing competition from private-label and substitute products over the past five years. Rising competition from private-label brands, particularly from Coles and Woolworths, and weakening demand for traditional snack foods, due to growing health consciousness, have constrained industry growth over the past five years. However, the industry has been supported by increasing demand for higher value products, such as gourmet potato chips. As a result, industry revenue is expected to grow at an annualised 1.5% over the five years through 2016-17, to reach $2.3 billion. This includes projected growth of 0.3% in the current year... purchase to read more
Industry Report - Industry Investment Chapter
The Snack Food Manufacturing industry is moderately capital-intensive. For every dollar spent on capital costs, an estimated $5.88 is spent on wages. Industry operators, particularly larger players, rely heavily on automated machinery for the 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, capital intensity has increased... purchase to read more