|Last Quarterly Update:||3/27/2017|
|SIC Codes:||2068, 2096|
|Industry Overview||Trends & Challenges||Industry Forecast|
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|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry make snack foods such as nuts, chips, and popcorn, as well as peanut butter. Major companies include Frito-Lay, Mondelez International, Snyder's-Lance, and Utz Quality Foods (all based in the US), as well as Calbee Foods (Japan); Nongshim (South Korea); and United Biscuits (UK).
Worldwide, the snack foods market is expected to exceed $630 billion in revenue by 2020, according to Global Industry Analysts. Europe and the US are the largest markets for snack foods manufacturers. The Asia/Pacific region, with a projected compound annual growth rate of 7.2% through 2020, is the world's fastest-growing snack foods market. Other regional growth opportunities include Latin America, the Middle East, and Africa.
The US snack foods manufacturing industry includes about 650 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.
The industry does not include makers of cookies and candy, which are covered in separate industry profiles.
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 90% of industry revenue.
Snack foods compete ...
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