Fresh cut: Industry firms turn to niche and premium products for revenue growth

The Potato Chip Production industry has faced changing downstream consumption patterns and increased competition from substitute and private-label products over the past five years. Most notably, rising health consciousness has encouraged many consumers to take up healthier eating habits over the period. As a result, consumers have increasingly opted for healthier substitute snack products, such as fruit and nut bars or wholegrain crackers. Industry operators have responded by developing healthier, premium products, which have offset shrinking demand for traditional potato chips over the past five years. Industry revenue is expected to grow at an annualised 1.5% over the five years through 2018-19, to $888.9 million. This includes anticipated growth of 0.6% in the current more.

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

Industry Threats & Opportunities

  • Changing consumer tastes have created scope for new players to enter the industry
  • Changing and diversifying consumer preferences have further fragmented the market for snack foods
  • Growing demand for premium potato chips is projected to boost industry profit margins
  • Industry Report - Starting a New Business Chapter

    Barriers to entry into the Potato Chip Production industry are high, and these have remained steady over the past five years. A significant barrier to entry for prospective industry participants is capital investment costs. Potato chip production and packaging has about eight stages of production, and a dedicated machine is required for each step. As a substantial part of the chip production process is automated, entrants need to seek out financing options. However, the risk of losing money if the venture fails means that the cost of financing will not only be high but willing lenders might also be hard to find.Besides raising the funds required to enter the industry, potential entrants would have to compete against established names in the market. As ...purchase to read more.

    Additional Insights for the Potato Chip Production Industry

    IBISWorld has determined the most important Key Success Factors for the Potato Chip Production are:

  • Development of new products
  • Having a loyal customer base
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Demand from supermarkets and grocery stores in the Potato Chip Production industry impact industry performance..

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    Table of Contents

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

  • Current Performance
  • Revenue and profitability
  • Eating habits
  • Trade and supply
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Eating habits
  • Industry structure and trade
  • Table: Potato Chip Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Potato Chip Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Fuel Retailing
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Cooking Oil and Margarine Manufacturing
  • Food Processing Machinery Manufacturing
  • Outdoor Vegetable Growing

  • Products & Services
  • Regular potato chips
  • Premium potato chips
  • Other potato chips
  • Chart: Potato Chip Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Other domestic markets
  • Export markets
  • Chart: Major Market Segmentation for the Potato Chip Production 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 Potato Chip Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Potato Chip Production 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 Potato Chip Production 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 Potato Chip Production 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Food Standards Australia New Zealand (Fsanz)
  • A statutory authority in the Australian Government Health portfolio that develops food standards for Australia and New Zealand.
  • Monosodium Glutamate (Msg)
  • A flavour enhancer that is sometimes added to food products.
  • Private-Label
  • Products that are manufactured by one company and sold under another company's brand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Potato Chip Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    • Inform your decisions for marketing, strategy and planning
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    This report on Potato Chip Production:
    • 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 Potato Chip Production 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 Potato Chip Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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