Crunch time: Intense competition from private-label products eats into industry revenue

The Snack Food Manufacturing industry has faced changing consumer preferences, volatile input prices, and increasing competition from private-label and substitute products over the past five years. As a result, industry revenue is expected to fall at an annualised 0.5% over the five years through 2018-19, to $1.7 billion. However, revenue is anticipated to increase by 1.0% in the current year, due to rising disposable incomes. Despite revenue declining over the past five years, rising disposable incomes and higher demand from export markets have benefited industry operators. Increased demand for higher value and gourmet products has also supported industry revenue over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Demand for traditional snack foods has declined as concerns regarding health and obesity have grown
  • Rising health consciousness has prompted some consumers to switch to healthier snack-food options
  • Healthy and gourmet snack foods are forecast to account for a rising share of industry revenue
  • 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. Companies like PepsiCo and Consolidated Snacks 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.The costs of commencing smaller-scale operations are not as prohibitive. Snack-food manufacturing can be carried out without large-scale machinery, especially the manufacturing of niche or specialty products. Thi...purchase to read more.

    Additional Insights for the Snack Food Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Snack Food Manufacturing are:

  • Economies of scale
  • Access to niche markets
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Domestic price of vegetables and Health consciousness in the Snack Food Manufacturing industry impact industry performance..

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    What's in this report

    What is the Snack Food Manufacturing Industry?

    Industry companies manufacture snack food products such as potato chips, corn chips, savoury snacks, nuts, pretzels and other similar snacks, including healthier snacks such as muesli and protein bars. Manufacturers buy raw materials like milled corn, wheat, potatoes, food extracts, flavourings, preservatives and sugar to process into snack foods. The finished products are then packaged and sold to wholesalers, retailers and other markets.

    Industry Products
  • Potato chips and other snacks
  • Corn chips
  • Health snack foods (including nuts)
  • Industry Activities
  • Corn chip
  • Potato chip
  • Pretzel
  • Nut foods
  • Health bar
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of vegetables
  • Health consciousness
  • Real household disposable income
  • Demand from supermarkets and grocery stores
  • Domestic price of wheat

  • Current Performance
  • Revenue and profitability
  • Changing demand
  • Participation trends
  • Industry challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Consumer demand
  • Competition intensifies
  • Participation trends
  • Table: Snack Food Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Snack Food Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Fuel Retailing
  • Pubs, Bars and Nightclubs
  • Hotels and Resorts
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Citrus Fruit, Nut and Other Fruit Growing
  • Food Processing Machinery Manufacturing
  • Grain Growing
  • Outdoor Vegetable Growing
  • Sugar Manufacturing

  • Products & Services
  • Potato chips and other snacks
  • Health snack foods (including nuts)
  • Corn chips
  • Chart: Snack Food Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Retailers
  • Wholesalers
  • Other domestic markets
  • Chart: Major Market Segmentation for the Snack Food Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Snack Food Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Snack Food Manufacturing Industry

  • Industry Globalization
    PepsiCo ANZ Holdings Pty Ltd, Consolidated Snacks Pty Ltd,
  • Table: PepsiCo ANZ Holdings Pty Ltd - financial performance
  • Table: Consolidated Snacks Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Snack Food Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Snack Food Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food Standards Australia New Zealand
  • The agency responsible for developing and administering requirements for food safety and labelling in Australia and New Zealand.
  • Genetically Modified (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic-engineering techniques.
  • Gluten-Free
  • A product that is free from gluten, which is a protein composite found in wheat, barley and rye.
  • What Our Customers Say

    Why buy this report?

    The Snack Food Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Snack Food Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Snack Food Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Snack Food Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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