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 815 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 82 workers, and generates about $27 million annually.
- The perishable prepared food manufacturing industry consists of about 815 companies, which employ about 66,500 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
Jan 30, 2025 - Prices Rebounding
- According to the latest US Bureau of Labor Statistics data, the producer price index for perishable prepared food manufacturers, which measures prices producers receive for their output, rose 5.3%% in December compared to a year ago after sinking 12.9% in the previous December-versus-December annual comparison. Meanwhile, food industry sales and after-tax profits declined in Q3 2024 on an annual basis, per the Census Bureau. However, profits rebounded in Q3 from Q2, rising 30.8%. Employment by miscellaneous food product manufacturers, which includes makers of perishable prepared food, fell 2.9% year over year in November, extending a contraction in the workforce that began early in the year, BLS data shows.
- A new rule proposed by the FDA in January would require food manufacturers to put new labels on the front of packages containing key nutrition information on salt, added sugar and saturated fat, The Wall Street Journal reports. The new labels would inform consumers about whether products are considered high, medium or low in salt, added sugar and saturated fat, which the agency has warned can lead to chronic diseases when consumed in excess. The proposed warning labels were an effort by the previous administration to help Americans make healthier dietary choices. However, Robert F. Kennedy, Jr., Trump’s nominee to head the Department of Health and Human Services, which oversees the FDA, is a staunch critic of the food industry, which he claims is making Americans sick and obese. The FDA is accepting public comments on the proposal until May 16. If finalized, food manufacturers would have several years to comply, per WSJ.
- Nearly 10 million pounds of pre-cooked chicken and deli meat-based meals were recalled by manufacturer BrucePac after testing positive for Listeria monocytogenes, the USDA announced in October. Previously, 10 people died and 61 were sickened in 19 states after eating listeria-contaminated Boar's Head products. While the CDC has declared that outbreak officially over, the outbreak resulted in the closing of the Boar’s Head plant in Virginia linked to the contaminated meat. While listeria outbreaks are making headlines, there appears to be no drastic increase in the number of total recalls related to Listeria in 2024, said Thomas Gremillion, director of food policy at the Consumer Federation of America. In 2023, consumer-interest group US PIRG found 47 food recalls and alerts due to Listeria, compared to 43 in 2022, and 56 in 2019. However, the size of the recalls and the effects of the contamination have been far-reaching.
- Competition for grocery store shelf space is heating up as brands vie for a shrinking number of spots, The Wall Street Journal reports. While claiming prime retail shelf space has always been competitive, it’s becoming more so as grocers trim the number of items they stock, shrink their retail footprints, and devote more space to their store brands, Steve Zurek, a VP at consumer research firm NIQ told WSJ. Between 2009 and 2023, square footage in supercenters and supermarkets decreased by 5% and 3.3%, respectively, NIQ data shows. Meanwhile, between 2020 and last year, retailers cut unique products by nearly 9%, per NIQ. Retailers are prioritizing products that help inflation-weary consumers save money to keep them coming back. In response, consumer-packaged-goods and food companies are “ investing in new products and working to ensure packaging and prices appeal to shoppers – and to grocers,” WSJ reports.
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