Blue chip: Demand for healthier and premium snack foods has driven revenue growth

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. Despite these challenges, growth in both disposable income and demand from supermarkets has seen the industry perform strongly over the period. Industry operators are embracing changes in consumer preferences and catering for increasingly health-conscious consumers. Increasing demand for higher value and gourmet products has supported the industry. As a result, industry revenue is expected to grow at an annualised 3.7% over the five years through 2017-18, to reach $2.6 billion. This includes expected growth of 4.3% in the current more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Health-conscious consumers are shifting from high-fat, salty snacks to healthier options
  • Increased demand for healthier snack foods is driving industry revenue growth
  • Healthy and gourmet snack foods are forecast to make up a rising share of revenue
  • Industry Report - Industry Key Buyers Chapter

    The Snack Food Manufacturing industry is moderately concentrated, with the top four players estimated to account for approximately 53% of revenue in 2017-18. Industry concentration is significantly higher in certain product segments. For example, Frito-Lay and Consolidated Snacks dominate the potato chip segment. In addition, only a few large companies, such as Nestle, supply a variety of downstream markets nationwide.Rising health consciousness and changing trends consumer tastes have allowed some scope for smaller companies to gain market share at the expense of the industry's larger players. For...purchase to read more.

    Additional Insights for the Snack Food Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Snack Food Manufacturing Industry are

  • Economies of scale
  • Access to niche markets
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Real household disposable income 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?

    Companies in the industry manufacture snack food products such as potato chips, corn chips, savoury snacks, nuts, pretzels and other similar snacks, including healthy 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
  • Nuts
  • Health snack foods
  • Corn chips
  • Other snacks
  • Industry Activities
  • Corn chips
  • Potato chips
  • Pretzels
  • 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
  • Demand from supermarkets and grocery stores
  • Real household disposable income
  • Health consciousness
  • Domestic price of vegetables
  • Domestic price of wheat

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

  • Industry Outlook
  • Revenue and profitability
  • Consumer demand
  • Competition
  • Participation
  • 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
  • Nuts
  • Health snack foods
  • Corn chips
  • Other snacks
  • Chart: Snack Food Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Other domestic markets
  • Export 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
  • Profit
  • Purchases
  • Wages
  • Other
  • 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
    Frito-Lay Australia Holdings Pty Limited, Consolidated Snacks Pty Ltd,
  • Table: Frito-Lay Australia Holdings Pty Limited - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • Wholegrain
  • The whole unprocessed cereal grain, containing the germ, endosperm and bran.
  • 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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