Industry Analysis & Industry Trends
The Sausage Production industry has seen better times. Growing awareness of health and nutrition has led consumer choices away from high-fat foods, such as sausages and related smallgoods. Producers have also been plagued with falling profitability, volatile commodity inputs and anaemic consumer sentiment. Offsetting these factors has been a growing appetite for high end and specialised products. This trend of premiumisation has resulted in an increased demand for high-margin gourmet and specialty sausages such as chorizo, bratwurst and sopressa. Producers have also responded to industry threats by being innovative with their product development. Growing areas include low-fat products with convenience packaging and varied consumption options... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry in the industry depend on the share of industry revenue a new entrant is hoping to achieve. Relatively low barriers exist for entry into a niche area of the industry focused on a particular style of sausage. Barriers to entry increase significantly with the scale of operations. They are at their highest for entry into the fresh sausage segment.
Many products sold within this segment are generic in nature. Industry participants compete on their ability to deliver a standard product to retailers and wholesalers at a low cost. A large amount of capital is required to establish production facilities that would allow an operator to enter this market... purchase to read more