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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 570 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.

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.

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%.

Industry size & Structure

The average snack food manufacturer employs 103 workers and generates $69 million annually.

    • The snack food manufacturing industry consists of about 570 firms that employ 58,900 workers and generate $39.5 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 42% of firms and 37% of industry revenue.
    • Other snack food manufacturers account for 58% of firms and 63% of revenue.
                                    Industry Forecast
                                    Snack Food Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 26, 2022 - More Consumers Opt for Plant-Based Alternatives
                                    • Health and environmental concerns are motivating consumers to explore foods made with plant-based alternatives. Studies suggest Gen Z and Millennials are most likely to become vegan, vegetarian, or incorporate more plant-based foods into their diets than any other generation, reports Snack Food & Wholesale Bakery. Plant-based dairies and egg mixtures are easily substituted ingredients in baked goods such as brownies, cookies, cakes and other snack foods.
                                    • Grocery and restaurant prices will continue to rise between 4.5% and 5.5% in 2022, with food-at-home prices expected to increase by as much as 4%, according to a March 2022 USDA report that revised food prices upward for the year. The department projected the price of cereals and bakery products to increase 7.8%, and the price of sugar and sweets to rise 7%. From February 2021 to February 2022, overall food prices increased by 7.9%, which was the largest price jump in one year since July 1981. “The impacts of the conflict in Ukraine and the recent increases in interest rates by the Federal Reserve are expected to put upward and downward pressures on food prices, respectively,” the USDA’s March report reads.
                                    • Snack food manufacturers are paying higher prices for wheat as a result of Russia’s invasion of Ukraine. The aggression has led to bans and sanctions on wheat exports from Russia. As countries refuse to trade with Russia, the volume of wheat (used for flour) in the market has shrunk and driven up prices to a 14-year high, according to Bakery & Snacks. Canada is major producers and supplier to the US and global market, but a drought in 2021 lowered yield and damaged soil conditions that could affect crops in 2022.
                                    • Popcorn remains a snacking favorite and manufacturers are blending new and traditional flavors to expand product lines and better meet people’s cravings. Popcorn is one of the fastest growing snack foods with sales forecast to increase 8.3% in 2023, according to Baking Business. The pandemic quarantines and working from home have allowed consumers to snack more often and have engrained snacking into lifestyles.
                                    • The nuts and seeds segment of the snack food industry will have the highest compound annual growth from 2022 to 2027, according to MarketsandMarkets. The pandemic has significantly changed the customers' food preferences and pushed them to include many healthy and nutritious food products. This is expected to drive growth for nuts & seeds.
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