Food Manufacturing Industry Profile

Companies in this industry manufacture and process a wide variety of foods, including meat, seafood, dairy products, fruits and vegetables, milled grains and oilseeds, baked goods, and candy. Major companies include US-based Archer-Daniels-Midland, Conagra Brands, Frito-Lay, General Mills, Kellogg, Kraft Heinz, Mondelez International, and Tyson Foods; along with COFCO (China), Danone (France), Fonterra (New Zealand), Grupo Bimbo (Mexico), JBS (Brazil), Maruha Nichiro (Japan), Nestlé (Switzerland), and Unilever (The Netherlands).

Worldwide, the market size of processed foods reached $5.9 trillion in 2019 and is estimated to grow up to $7.7 trillion by 2026, according to Industry Research. 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 51% of industry revenue.

The US exports processed foods mainly to Canada, Mexico, Japan, ...