Study Examines Future of U.S. Snack Food Manufacturing

December 20, 2010
/ Print / Reprints /
ShareMore
/ Text Size+
Research and Markets is offering a report on the consumption of snack foods and relates trends to help manufacturers adjust their business strategies. “Snack Food Manufacturing” looks at the U.S. snack food manufacturing industry, which includes about 50 companies with combined annual revenue of $24 billion. The top 50 companies account for 90% of industry revenue.


A study titled “Snack Food Manufacturing,” available from Research and Markets, claims to predict the future U.S. consumption and snack trends. The top 50 of 500 companies researched, such as PepsiCo, ConAgra Foods and Kraft, account for 90% of the annual revenue of $24 billion.

The snack food manufacturing industry includes companies that make roasted nuts and nut mixes; potato, tortilla and corn chips; popped popcorn; and peanut butter. This industry doesn't include companies that make cookies, candy, saltines, pies or chocolate-covered snacks.

Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing and a solid sales force. Large companies have advantages in raw material purchasing, manufacturing efficiencies, distribution and marketing budgets. Small operations can compete effectively by self-distributing products, selling online or marketing snacks as gift items. According to the study, the industry is capital-intensive: The average annual revenue per employee is $500,000.

Snack food manufacturing competes against other “impulse” food items, such as cookies and crackers, baked goods, fruits and vegetables and fast food. The major products are potato chips (30% of industry revenue); tortilla chips (20%); and bulk nuts (10%). Other products include canned nuts, corn chips, peanut butter, popcorn and hard pretzels.

Meanwhile, salty snack foods are found in most American households. The average household spends around $80 on salty snacks each year.

For more information on the study, visit http://www.researchandmarkets.com/research/04e2a0/snack_foods_manufacturing

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Bakery of the Year: Capistrano's Wholesale Bakery, Phoenix AZ

Here’s a look at Capistrano’s Bakery, our 2014 Bakery of the Year.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 September

September's Snack Food & Wholesale Bakery publication features on defining whole -grain foods, as well as a special feature on the 2014 Bakery of the Year: Capistrano's Wholesale Bakery!

Table Of Contents Subscribe

Favorite Birthday Cake Flavor

September is the most popular birthday month, according to flavor expert McCormick & Co., which celebrates its 125th birthday this year. What’s your favorite birthday cake flavor?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon