Perishable Prepared Food Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 795 perishable prepared food manufacturers in the US produce fresh, ready-to-eat or ready-to-heat food that provide convenience for consumers. Products include pastas and noodles, processed fruits and vegetables, salads and slaws, pizzas, sandwiches and wraps, tofu, hard-boiled eggs, refrigerated snack packs, cooked meats, refrigerated soups and stews, meat pies and quiches, and packaged lunches.
Competition for Retail Shelf Space
Firms can lose access to markets if products are slow movers or expire on retailers’ shelves, as competition for shelf space is fierce, especially for refrigerated foods.
Healthier Prepared Options
Consumers are looking for convenient prepared food options that are healthier than fast food.
Industry size & Structure
The average perishable prepared food manufacturer operates out of a single location, employs about 83 workers, and generates about $27 million annually.
- The perishable prepared food manufacturing industry consists of about 795 companies, which employ about 65,876 workers and generate about $21.7 billion annually.
- The industry is concentrated with the 20 largest firms representing 60% of industry revenue.
- Customer industries include food distributors, grocers, convenience stores, institutions, airports, and vending machine owners.
- Large companies include Fresh Express, Fresh & Ready Foods, E.A. Sween Company, Reser’s Fine Foods, and Spring Glen, as well as divisions of large food manufacturers such as Kraft Heinz (Lunchables).
Industry Forecast
Perishable Prepared Food Manufacturers Industry Growth
Recent Developments
Mar 30, 2024 - Employment Growth Continued in 2023
- Employment by miscellaneous food product manufacturers, which includes makers of perishable prepared foods, continued to climb in 2023 rising 3.3% in December compared to a year ago, according to the US Bureau of Labor Statistics. From its pre-pandemic high in February 2020, employment by the industry was up 12.5% at the end of last year amid rising food sales, which peaked in the fourth quarter of 2022. Rising producer prices for perishable prepared food manufacturers accounted for much of that gain. However, as inflation began to cool in 2023, producer prices for makers of perishable prepared foods fell nearly 13% in December year over year, BLS data show.
- Frozen foods generated nearly $77.6 billion in sales in 2023 and volume sales were up 5% compared to 2019, according to Conagra Brands’ Future of Frozen Foods 2024 report. US consumers eat frozen food products an average of four times a week, with frozen vegetables among the top frozen food items Americans have on hand, according to market research firm Circana’s National Eating Trends data. Consumers in rural areas purchase frozen foods more frequently. Prepared foods accounted for the largest percentage of dollar sales (32.7%) by category with sales rising 8% compared to 2019. Behind prepared foods in dollar sales were desserts (22.1%), seafood (8.7%), pizza (8.6%), fully-cooked meat (7.9%), fresh meat (4.9%), vegetables (4.6%), fruit (2.4%), processed meat (1.4%), bread (1%), and all other (5.8%), per data collected by NielsenIQ for the 52 weeks ending 12/2/2023.
- The food industry is pushing back against the US government’s probe regarding the health effects of heavily processed (aka ultra-processed) food, The Wall Street Journal reports. The industry is concerned that the government’s bid to get Americans to eat a more healthy diet could threaten profits. Opposition to ultra-processed foods – those foods most likely have many added ingredients such as sugar, salt, fat, and artificial colors or preservatives – is gaining traction, WSJ reports. Federal researchers are studying the health effects of processed foods and lawmakers are holding hearings highlighting their possible risks ahead of the next release of dietary guidelines, which tell Americans which types of foods to eat and how much. Big food companies, including Unilever and pasta-maker Barilla, are seeking to forestall those recommendations in the coming guidelines and defend food processing, arguing that it has made food safe, convenient, accessible, and affordable, per WSJ.
- Meal kits and prepared entrees and side dishes are changing the way Americans cook dinner, creating new opportunities for food manufacturers and processors, Refrigerated & Frozen Foods (RFF) reports. Driven by consumers’ growing preference for at-home meals prepared with minimal effort, the meal kit delivery market is projected to grow at a compound annual growth rate (CAGR) of 14.6% over the next decade, for a forecasted value of over $65 million by 2033, according to RFF. These drivers and the challenges and added costs grocery chains face preparing fresh foods and meals in-store are creating opportunities for food manufacturers to provide branded and private-label ready-to-cook and ready-to-heat meals. Companies such as Home Chef, Factor, and FreshRealm are investing to expand their infrastructures to meet rising demand from consumers and retailers including Amazon Fresh, Kroger, Publix, Meijer, and Walmart. Dole and Fresh Express are innovating with salad kits, per RFF.
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