Industry Analysis & Industry Trends
Increased demand for convenient prepared meals, growing health and nutrition awareness, increased significance of branding and greater competition from private labels have largely influenced the industry over the past five years. These factors have had varying effects on industry revenue, which is expected to grow at an annualized 0.4% over the five years through 2012. Revenue is forecast to grow by 2.4% in 2012, to reach $164.3 billion.
The availability of inputs like fresh fruit and vegetables and packaging materials, and the extent of the manufacturing sector's development determine the geographic spread of the industry. The value of production in different countries also depends on the price level and costs of inputs in that particular country... read more
Starting a New Business
Entry into this industry is relatively straightforward since the technology needed for production is readily available and specialist processors can operate on a relatively small scale in the processing of some products. There are currently a hundred or more firms entering and exiting the industry each year. Some of the minor barriers include sunk costs and brand competition.
Sunk costs represent the expenditure required to establish production. They include the construction or purchase of a processing facility, warehouse, plant and equipment. These costs are particularly high in canning operations that are characteristically capital intensive.
Branding and the presence of brand proliferation are widespread in the processing industry... read more