Industry Analysis & Industry Trends
The Health Snack Food Production industry is performing strongly. Over the five years through 2015-16, industry revenue is forecast to grow at an annualised 3.0% to reach $755.2 million. This growth is driven by rising discretionary incomes and growing consumer health consciousness. IBISWorld anticipates that industry growth has been driven by both the introduction of revolutionary products, as well as the increased uptake of healthy diets among consumers. Growing participation in sport, consumer concerns about obesity levels in Australia and time-constrained lifestyles are the key driving forces behind healthy eating and the uptake healthy snacks. However, in 2015-16, industry revenue is forecast to increase by 1.8%, as competitive forces restrict industry growth... purchase to read more
Industry Report - Industry Investment Chapter
The Health Snack Food Production industry is expected to exhibit a low level of capital intensity. Unlike the traditional snack manufacturing industry, health snack food manufacturers exhibit a much lower degree of capital intensiveness. This is largely due to higher labour inputs in production, with a number of higher value products requiring manual processing. At the same time, the industry operates much smaller production runs than traditional snack makers, giving them lower economies of scale without the per-unit savings of larger snack producers.
As a result, IBISWorld anticipates that for every dollar paid as wages, around $0.09 is required by industry participants to be spent on capital investment... purchase to read more