Snack Foods Manufacturing
Brief Excerpt from Industry Overview Chapter:
Companies in this industry make snack foods such as nuts, chips, and popcorn, as well as peanut butter. Major companies include Clif Bar & Company, Frito-Lay, Mondelez International, Utz Brands, Wonderful Pistachios & Almonds, and the snack divisions of diversified food manufacturers such as Campbell Soup Company and Kellogg's (all based in the US); other leading firms include Calbee (Japan), Nongshim (South Korea), and United Biscuits and Walkers Crisps (both based in the UK).
Demand is driven by?consumer tastes?and?health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong 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. The US industry is?highly concentrated: the top 50 companies account for about 85% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are nuts and seeds, potato chips, corn chips, and tortilla chips. Other products include peanut butter, popcorn, hard pretzels, and other chips. Salty snack foods are found in most American households. According to Statista Global Consumer Survey in 2021, America's favorite snacks include cookies (accounting for about 60%), chips & crisps (58%), ice cream (53%), milk products (52%), sweets (51%), nuts (50%), chocolate bars (49%), dried fruits (31%), and vegetable chips (24%).
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