Industry Analysis & Industry Trends
Volatile commodity prices, changing consumer trends and a saturated market are just some of the characteristics associated with the Snack Food Manufacturing industry. While the industry has shown glimpses of promise in the five years through 2013-14, rising commodity prices, turbulent economic conditions and rapidly changing consumer trends have limited growth. In the five years through 2013-14, industry revenue is expected to increase by an annualised 2.2% to total $3.0 billion. In 2013-14, revenue is expected to increase by only 0.5%.
The industry's major players have been faced with lower 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 Key Buyers Chapter
The industry has a medium level of market share concentration, with the major players accounting for about 55% of the industry. Indicative of an industry in its mature life cycle, the major players control the majority of industry revenue. The product lines of larger players, such as Frito-Lay and Snack Foods Limited, tend to comprise mid- to low-value, high-volume products. Smaller firms tend to focus on niche markets supplying speciality products of high value, but with shorter production runs and hence lower volumes.
Despite the presence of smaller firms, the Snack Food Manufacturing industry is moving towards large-scale, concentrated production. Due to significant consolidation, the industry has fewer firms managing major brands than it did a decade ago... purchase to read more