Food Manufacturing
Description
Companies in this industry manufacture and process a wide variety of foods, including meats, seafood, dairy products, fruits and vegetables, milled grains and oilseeds, baked goods, and candy. Major companies include ADM, Conagra Brands, Frito-Lay, General Mills, Kraft Heinz, Mondelez International, and Tyson Foods (all based in the US); along with COFCO (China), Danone (France), Fonterra (New Zealand), Grupo Bimbo (Mexico), JBS (Brazil), Nestlé (Switzerland), Umios (Japan), and Unilever (UK).
The global food market amounts to about $9.7 trillion in 2026 and is expected to grow annually by 6.24% from the 2026-2031 forecast period, according to Statista. Global industry revenue is increasing, but economic slowdowns in key emerging markets have curbed growth in recent years.
The US food manufacturing industry consists of about 27,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $780 billion.
COMPETITIVE LANDSCAPE
Food consumption drives demand, and this depends on population growth. The profitability of individual companies depends on efficient operations because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have economies of scale in purchasing and distribution. Small companies can compete effectively in local or regional markets and by developing popular products. The industry is concentrated: the 50 largest companies account for about 50% of industry revenue.
The US exports processed foods mainly to Canada, Mexico, Japan, South Korea, and China. Exports account for about 8% of production. Imports, primarily from Canada, Mexico, China, Australia, and Indonesia, account for 8% of the US market.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include beef, which accounts for about 10% of the industry revenue, followed by young chickens and natural cheese at about 5% each. Other products include bread and processed poultry.
Food manufacturers may operate in multiple sectors or focus on specific products. Manufacturing processes are usually standardized and highly automated. Testing for product safety and quality is done at numerous steps in the production process.
Several distinct steps are involved in processing live animals into finished meat products. Live animals are typically bred and raised on individual farms until they reach a minimum size. They are then transported to feedlots for finishing, where they're fed high-quality grain feed mixtures until they reach their finished weight. The animals are then slaughtered, and the dressed carcasses are either processed further in the same plant or sold to outside processors.
Basic steps in a milk processing plant are separating milk fat from milk, adjusting the fat content, heating the milk to kill bacteria (pasteurization), pressure-treating to disperse fat droplets throughout the liquid (homogenization), and bottling in cartons or plastic containers. Milk designated as raw has not been pasteurized or homogenized. Butter is produced by solidifying milk fat. Cheese, yogurt, cottage cheese, and sour cream are made from milk by adding various cultures of bacteria that coagulate the proteins in the milk. Ice cream is made by chilling a mixture of milk fat and sugar.
Major types of fruit and vegetable processing include canning and freezing. Raw materials are usually acquired from contract growers, who produce specific varieties of crops according to processor requirements. Processing operations are typically seasonal, coinciding with crop harvests. Temporary workers are hired, and inventories grow substantially during the packing season in summer and early fall. Most processing operations are highly automated, but fruit sorting is still largely done by hand.
Common inputs for food manufacturers include commodities such as livestock, grains, flour, oils, fresh fruits and vegetables, and spices. Companies may have contracts with growers or buy processed ingredients from suppliers to make the final product. Other key inputs include water, electricity, and natural gas.
The global food market amounts to about $9.7 trillion in 2026 and is expected to grow annually by 6.24% from the 2026-2031 forecast period, according to Statista. Global industry revenue is increasing, but economic slowdowns in key emerging markets have curbed growth in recent years.
The US food manufacturing industry consists of about 27,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $780 billion.
COMPETITIVE LANDSCAPE
Food consumption drives demand, and this depends on population growth. The profitability of individual companies depends on efficient operations because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have economies of scale in purchasing and distribution. Small companies can compete effectively in local or regional markets and by developing popular products. The industry is concentrated: the 50 largest companies account for about 50% of industry revenue.
The US exports processed foods mainly to Canada, Mexico, Japan, South Korea, and China. Exports account for about 8% of production. Imports, primarily from Canada, Mexico, China, Australia, and Indonesia, account for 8% of the US market.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include beef, which accounts for about 10% of the industry revenue, followed by young chickens and natural cheese at about 5% each. Other products include bread and processed poultry.
Food manufacturers may operate in multiple sectors or focus on specific products. Manufacturing processes are usually standardized and highly automated. Testing for product safety and quality is done at numerous steps in the production process.
Several distinct steps are involved in processing live animals into finished meat products. Live animals are typically bred and raised on individual farms until they reach a minimum size. They are then transported to feedlots for finishing, where they're fed high-quality grain feed mixtures until they reach their finished weight. The animals are then slaughtered, and the dressed carcasses are either processed further in the same plant or sold to outside processors.
Basic steps in a milk processing plant are separating milk fat from milk, adjusting the fat content, heating the milk to kill bacteria (pasteurization), pressure-treating to disperse fat droplets throughout the liquid (homogenization), and bottling in cartons or plastic containers. Milk designated as raw has not been pasteurized or homogenized. Butter is produced by solidifying milk fat. Cheese, yogurt, cottage cheese, and sour cream are made from milk by adding various cultures of bacteria that coagulate the proteins in the milk. Ice cream is made by chilling a mixture of milk fat and sugar.
Major types of fruit and vegetable processing include canning and freezing. Raw materials are usually acquired from contract growers, who produce specific varieties of crops according to processor requirements. Processing operations are typically seasonal, coinciding with crop harvests. Temporary workers are hired, and inventories grow substantially during the packing season in summer and early fall. Most processing operations are highly automated, but fruit sorting is still largely done by hand.
Common inputs for food manufacturers include commodities such as livestock, grains, flour, oils, fresh fruits and vegetables, and spices. Companies may have contracts with growers or buy processed ingredients from suppliers to make the final product. Other key inputs include water, electricity, and natural gas.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Pricing
Currency Rates
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