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, trends expected to constrain industry revenue growth include volatile commodity prices, rising competition and increasingly health-conscious consumers switching to healthier alternatives. Over the five years through 2015-16, industry revenue is expected to increase by an annualised 1.7% to total $2.4 billion. In 2015-16, revenue is expected to increase by 1.4%.
The industry's major players have endured falling profit margins, increased competition from private-label products and stagnating domestic demand, particularly in the salty snacks segment, which has historically been the most profitable... purchase to read more
Industry Report - Starting a New Business Chapter
The Snack Food Manufacturing industry exhibits moderate barriers to entry. The biggest threat facing potential new entrants is the well-established positions of the industry's major players. Firms like Frito-Lay, Snack Food Limited and Nestle enjoy high brand recognition, and have considerable resources to invest in advertising to protect and grow their market share. Furthermore, the major players enjoy favourable contracts with key suppliers such as grocery stores and supermarkets, which may be difficult for new entrants to secure. Rising automation and increasing capital costs are making it increasingly difficult for new entrants to compete with larger scale operators.
However, the costs of commencing smaller scale operations are not as prohibitive... purchase to read more