Industry Analysis & Industry Trends
The Pasta Sauce Production industry has performed well over the past five years, in contrast to the downward trend exhibited by many manufacturing industries. Industry revenue is expected to grow at an annualised 2.5% over the five years through 2015-16, to reach $145.7 million. Busy consumer lifestyles, renewed interest in cooking at home and some premiumisation have benefited producers. These factors are expected to contribute to 2.0% revenue growth in 2015-16.
For some consumers, pasta sauce represents a quick and convenient meal component that is cost-effective and healthy. Other consumers use pasta sauce as a recipe base for more sophisticated cooking involving meat, vegetables, herbs and spices... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry within the industry are medium. The primary barriers to entry are high establishment costs, lack of initial scale and relationships with major distributors. Lack of brand equity is also a significant barrier to entry.
Operations require scale in order to remain profitable. Therefore, initial investment into machinery, equipment and facilities is often required. Large companies also require regulatory approval and have to meet various food standards. A major barrier to entry is the already-established branding of existing players and the customer loyalty that comes with it. As a result, it may be difficult for new players to penetrate the market... purchase to read more