Industry Analysis & Industry Trends
The Snack Food Production industry benefited from rising levels of per capita disposable income and product innovation over the past five years. As consumers had more disposable income, they increased demand for snack food products, thereby benefiting industry producers. During this time, the price of wheat increased, a primary input in several industry products and many of the larger industry players responded by passing cost increases to consumers in the form of higher product prices. These trends resulted in greater demand for industry products from the primary downstream markets, grocery wholesalers and retailers. Overall, industry revenue increased at an annualized rate of 1.2% to an estimated $2.4 billion in the five years to 2013. This includes expected growth of 2.0% in 2013... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry in the Snack Food Production industry are moderate and depend on the scale of production the entrant pursues. The scale of production defines the level of capital, technology, labour and enterprise required to begin operations. New entrants that aim to be competitive with medium- to large-size companies would need to heavily invest in equipment and machinery for production. Those that cannot afford these initial investments would be unable to enter the industry.
Another threat facing potential new entrants is the established industry players, especially among PepsiCo and Old Dutch... purchase to read more