Industry Analysis & Industry Trends
The Snack Food Production industry has benefited from increased demand over the past five years. As the economy has continued to strengthen, discretionary income levels have climbed. In turn, renewed consumer spending has boosted sales of potato and tortilla chips, along with nuts and seeds. The industry's future looks promising, with improving economic conditions expected to further lift demand for snacks. Projected increases in per capita disposable income will enable some consumers to trade up to premium brands and product segments, helping drive revenue growth. Additionally, as consumers demand more healthy versions of existing snacks, operators are expected to introduce a wider variety of products... purchase to read more
Industry Report - Industry Investment Chapter
The Snack Food Production industry exhibits a moderate level of capital intensity. For every dollar spent on labor, the industry is expected to spend about $0.25 on capital in 2016. The production of snacks involves extensive use of machinery that cannot be achieved through manual labor. For instance, industrial fryers and ovens are needed for chip production, while shelling machinery is used for nut products.
However, capital intensity varies considerably with the size of the manufacturer. The largest snack food manufacturers have a higher capital to labor ratio as they mass produce large quantities of goods. Small- to medium-size producers usually have a lower capital to labor ratio because they lack the resources to invest in expensive technology and equipment... purchase to read more