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
May 30, 2024 - Producer Prices Rising Sharply
- The producer price index for snack food manufacturers, which measures prices before reaching consumers, rose 12% in March compared to a year ago after climbing 11.5% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Snack food companies continue to hike prices even as inflation cools and are facing higher labor and ingredients costs. Rising consumer spending – up 3.1% in March year over year – is helping to support higher snack prices. Meanwhile, industry employment dipped 0.9% in March year over year, while average wages at food manufacturers increased 5.1% in April to $23.28 per hour, a new high for the food industry, BLS data show.
- While the steep rise in snack food prices hasn’t stopped consumers from snacking, it’s altering some of their buying habits, Food Business News (FBN) reports. With price hikes outpacing wage growth, consumers are having to make changes in how and what they buy, Sally Lyons Wyatt of food and beverage research firm Circana told attendees at the SNAC International conference in April. Shoppers are seeking out smaller packages of their favorite snacks as well as value packs and multi-packs sold at large club stores like Costco, she noted. Multi-packs are proving especially popular with cash-strapped consumers. Also, younger and higher-income consumers are shifting spending from retail to quick-service restaurants, taking share from packaged snack food manufacturers. By comparison, low- to middle-income households are buying more snacks from dollar stores. Social media is also influencing the types of snacks consumers are seeking, Lyons Wyatt says.
- The price of cocoa, a key ingredient in many popular snacks, has surged to record highs, The Wall Street Journal reports. In mid-March, May cocoa futures added $438 a metric ton to end at $7,405 in New York, nearly three times the price compared to a year ago and 38% above the previous record set in July 1977 during an earlier period of poor growing conditions in West Africa that shrank the global supply. Most of the world’s cocoa is grown in West Africa, where unusually wet weather followed by hot desert air led to a weak harvest and diminished stockpiles for the second consecutive year. Moreover, the supply shortage has been exacerbated by speculators stocking up on cocoa futures. The surge in cocoa prices has chocolatiers, confectioners, and big food companies raising prices, tweaking recipes, and shrinking products, WSJ reports.
- 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 its 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 steam, 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. Some big food companies are seeking to forestall those recommendations in the coming guidelines and defending processing to regulators, arguing that it's made food safe, convenient, accessible, and affordable, according to WSJ.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.