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 595 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 105 workers and generates $68 million annually.

    • The snack food manufacturing industry consists of about 595 firms that employ 62,800 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 multi-national companies with large portfolios of food and beverage products and include Pepsico (Frito-Lay), Kraft-Heinz (Planters), 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Sep 30, 2023 - Producer Prices Rise Amid Higher Ingredient Costs
                                    • The producer price index for snack food manufacturers, which measures prices before reaching consumers, is continuing its steep climb that began in 2021, driven by higher prices for key ingredients and labor. The higher prices charged by manufacturers are helping offset higher employment costs due to rising average industry wages, tempered by a decline in overall industry employment in July compared to the previous year.
                                    • Snack bar sales are rising as consumers seek out better-for-you, convenient snack bars, Snack Food & Wholesale Bakery (SF&WB) reported in September. According to market research firm Circana’s data for the 52 weeks ending July 16, the snack bars/granola bars/clusters category brought in $7.8 billion, an increase of 8.6% in dollar sales from the year prior. Unit sales were down, however, falling 7% over the same period, however. Looking at subcategories, granola bars posted a 9.7% increase in dollar sales, with unit sales down 5%. Sales of breakfast cereal snack bars and nutritional/intrinsic health value bars both increased 7% in dollar value, while unit sales decreased 8% and 10%, respectively.
                                    • Bakery giant Hostess is combining two of its most popular snacks together for its latest product innovation, Food and Wine reports. Ding Dongs x Twinkies Mashups are exactly what they sound like — a combination of some of the most recognizable parts of the two popular snack cakes. According to Hostess, the Mashups ``feature the moist, spongy cake and creamy filling Twinkies fans know and love enrobed in the rich, fudgy chocolate frosting of Ding Dongs." Dongs x Twinkies Mashups -- sold in a 10-count multipack -- arrived on shelves at Walmart stores nationwide in July. The snack is said to be a permanent addition to Hostess’ portfolio.
                                    • Price hikes drove a double-digit increase in snack sales last year as volumes declined, according to SNAC International’s 2023 State of the Industry Report. Sales of salty snacks grew to approximately $28.4 billion in 2022, up 15.6% from the prior year. But the volume of snacks sold decreased 0.9% over the same period, according to the SNAC report. Pretzels and corn snacks were the only two categories that saw growth in both dollar and unit sales last year. Pretzel sales, lifted by new flavored and premium varieties, rose 17.5%, to about $1.8 billion, and 2.3% in unit sales, while corn snacks rose 21.1%, to $1.5 billion, and 3.6% in units. Snacks are a big part of US diets, accounting for more than a quarter (27%) of all US food and beverage sales in 2022.
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