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
May 30, 2024 - Producer Prices Gain Ground
- The producer price index for perishable prepared food manufacturers, which measures prices before reaching consumers, ticked up 1.4% in March compared to a year ago after rising 3.5% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by miscellaneous food product manufacturers, which includes makers of perishable prepared foods, was relatively flat (up less than 1%) in March, although employment remains near historical highs, according to the BLS. After-tax profits for food companies toppled 21% in the fourth quarter of 2023 vs Q4 2022 amid a sharp decline in producer prices last year (-12.9%) and cooling inflation.
- In an effort to make Americans eat healthier diets, the Food and Drug Administration is considering requiring food manufacturers to put new labels on the front of packages, The Wall Street Journal reports. The front-of-package labels would display health risks, such as high levels of salt, sugar, or saturated fat. The FDA, which is mulling different options for displaying the health warnings, plans to propose a rule on the labeling this summer, according to WSJ. Such warnings already appear on the front of packaged foods in Mexico, Chile and some other countries. If adopted, the new labeling requirements would appear on products such as sugary breakfast cereals, cookies, and yogurts. The food industry is opposed to the FDA plan, asserting there isn’t enough evidence that labels can significantly change consumer behavior or that some labels are confusing. Early research has shown that some warning labels can help people make healthier choices.
- 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 by 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.
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