Industry Analysis & Industry Trends
Consumers tightened spending during the recession, cutting demand for nonessential purchases like popcorn. Additionally, health-conscious consumers became wary of eating caloric and high-sodium flavored popcorn. Nevertheless, major companies were able to quickly adapt to changing consumer preferences by introducing healthier product lines. The industry is expected to continue growth by increasing investments in technology to develop new flavors and healthier products.... purchase to read more
Industry Report - Industry Investment Chapter
Popcorn production requires a 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 3.1% 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 5.5% of revenue in 2013. Therefore, on average, industry operators spend an estimated $0.56 on depreciation costs for every dollar spent on wages.
Capital intensity varies considerably with the size of the producer... purchase to read more