Snack 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 590 snack food manufacturers in the US produce a variety of salty snacks, including nuts, chips, popcorn, pretzels, peanut butter, and other grain or seed-based snack foods. Related product categories include dried and dehydrated foods and confectionary products. The industry does not include crackers or cookies.
Large Firms Dominate
The snack food industry is highly concentrated; the 50 largest companies account for 86% of revenue, and the top four companies account for 50%.
Health Concerns
The nutritional content of traditional salty snacks, such as chips and pretzels, has come under public scrutiny due to the connections between processed foods and the rising incidence of obesity, diabetes, and heart disease.
Industry size & Structure
The average snack food manufacturer employs 110 workers and generates $68 million annually.
- The snack food manufacturing industry comprises about 590 firms that employ 65,100 workers and generate $40.4 billion annually.
- The industry is highly concentrated; the top 50 companies account for 86% of industry revenue.
- The biggest firms with snack food manufacturing operations are multinational companies with large portfolios of food and beverage products and include Pepsico (Frito-Lay), Hormel (Planters, Corn Nuts, Skippy), and Campbell Soup (Snyder’s-Lance, Emerald).
- Roasted nut and peanut butter manufacturers account for 41% of firms and 39% of industry revenue.
- Other snack food manufacturers account for 59% of firms and 61% of revenue.
Industry Forecast
Snack Food Manufacturers Industry Growth
Recent Developments
Nov 30, 2024 - Wages Keep Rising
- Producer prices for snack food manufacturers rose 5.2% in September compared to a year ago after climbing 7.7% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Meanwhile, employment by snack food manufacturers was relatively flat, up just 0.3% year over year in September, followed by a 4.9% rise in the average industry wage at food manufacturers to a new high of $23.76 per hour in October, BLS data show. Rising consumer spending – up 2.9% in August compared to a year ago, according to the Bureau of Economic Analysis – is supporting rising industry payrolls and prices.
- President-elect Donald Trump’s pick to head the Department of Health and Human Services (HHS) – Robert F Kennedy Jr – signals a shakeup for producers of packaged snacks and, more broadly, the entire US food industry, Bakery & Snacks reports. Kennedy’s agenda for improving American diets targets ultra-processed foods (UPFs), which typically contain artificial additives such as food dyes and preservatives that are regulated by the Food and Drug Administration, over which HHS has broad authority. Bakeries & Snacks notes that shares of Kraft Heinz and Conagra – both big makers of packaged snacks – declined following RFK’s nomination amid concerns of possible sugar taxes and reformulation mandates. Indeed, RKS’s targeting of UPFs puts him in direct conflict with the major packaged foods companies (aka ‘Big Food’), which generate a significant percentage of their revenues from ultra-processed foods. Kennedy is also bent on driving greater transparency in food production, particularly in ingredient use and labelling.
- Sales of private-label products reached record-high market shares in both units and dollars in the first half of 2024 and are on track to top $250 billion for the year, according to Circana data released by the Private Label Manufacturers Association. Unit market share for private brands climbed to 22.9% of total unit volume, and dollar market share grew to 20.4% of total sales as of June 16, PLMA reported. Store brand sales for the first six months of 2024 totaled $121 billion, up 2.3% compared to a year ago. National brand sales grew at half that rate, up just 1.1%, over the same period. Private label growth was widespread throughout the store, with nine of the 10 store departments tracked by Circana posting private label dollar sales growth for the 52 weeks ending June 16, including general food, up 6.9%.
- Snack food manufacturers are pumping up protein levels to satisfy growing consumer hunger for extra protein, The Wall Street Journal reports. High-protein sweets are a response to a trend among consumers looking to increase their protein levels in treats, including cakes and cookies, and avoid added sugar, WSJ wrote, citing a survey of nearly 3,300 US consumers by the New Consumer and market research firm Toluna, which found six in 10 of those surveyed are looking to consume less sugar. The same survey found that almost 20% of people want to increase their protein intake this year. Searches for “protein desserts” on Google have reached their highest levels ever recently, per Google Trends. Food brands responding to the trend include protein-focused snack company Legendary Foods, which offers a high-protein sweet roll with wild berry, cinnamon, and chocolate variations, and Wow!, creator of a protein doughnut, WSJ reports.
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