Industry Analysis & Industry Trends
Over the five years to 2016, the uptick in discretionary spending has supported snack and confectionary industries such as the Popcorn Production industry. However, a healthy eating trend sweeping the nation in recent years has made consumers wary of eating high-sodium popcorn products, but has also led other consumers to find healthier alternatives to chips and candy. Moving forward, the industry is positioned for continued growth over the next five years. Producers will continue to adapt their products to match changing consumer tastes, specifically the healthy eating trend, which will continue to drive demand for industry products.... purchase to read more
Industry Report - Industry Investment Chapter
Popcorn production requires a medium to high level of capital investment. Modern manufacturing plants require sophisticated technology and equipment to increase productivity without the need for additional labor. Average companies spend about 2.0% of their revenue on depreciation costs. Despite the highly mechanized nature of the industry, operators still require workers to operate machinery and develop innovative products; wages account for about 8.1% of revenue in 2016. Therefore, on average, industry operators spend an estimated $0.24 on depreciation costs for every dollar spent on wages.
Capital intensity varies considerably with the size of the producer... purchase to read more