Out of stock: Higher competition from fresh produce will impede industry revenue growth

The Stock and Broth Production industry produces both liquid and dried stocks and broths, which are used in a variety of soups, sauces and gravies. Although industry products have historically been a staple in US households, the industry has been challenged over the past five years by rapid shifts in consumer food preferences. Consumers have increasingly sought organic or natural foods, which they perceive to be healthier than canned or processed goods. This trend has been particularly devastating to the industry's dried stock and broth segment; however, its impact has cascaded across the industry. Over the five years to 2017, industry revenue is expected to fall...read more.

Industry Statistics & Market Size
Revenue
$973m
Annual Growth 12-17
-1.9%
Forecast Growth 17-22
Profit
Employment
1,224
Businesses
70
What Our Customers Say

Industry Threats & Opportunities

  • Industry revenue will continue to decline, albeit at a slower pace, as consumers become more health conscious
  • Consumers have responded favorably to liquid stock and broth packaged in resealable containers
  • Operators will move to shore up their organic product lines to counter declining sales
  • Industry Report - Industry Key Buyers Chapter

    The Stock and Broth Production industry has a high level of concentration, with the top four manufacturers accounting for an estimated 69.8% of industry revenue in 2017. These companies benefit from strong brand loyalty and have considerable resources to invest in advertising and promotions to protect and grow their market share. Although sales of their core product offerings have largely declined as organic producers have entered the market, a combination of acquisition activity, product development and rebranding have helped these companies expand their market share in this declining industry over the past five years. This trend is expected to continue over the next five years...purchase to read more.

    Additional Insights for the Stock & Broth Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Stock & Broth Production Industry are

  • Ability to pass on cost increases
  • Supply contracts in place for key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Healthy eating index in the Stock & Broth Production industry impact industry performance..

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    What is the Stock & Broth Production Industry?

    Stock and broth manufacturers make liquid food bases out of animal and vegetable components, as well as dried stocks and broths that can be mixed with water. These products are generally used as ingredients in soups, gravies and sauces. However, the industry excludes establishments that process stock and broth with other ingredients before sale to consumers.

    Industry Products
  • Brand-name liquid stock and broth
  • Private-label liquid stock and broth
  • Bullion, dried and other varieties
  • Industry Activities
  • Producing liquid broth
  • Producing liquid stock
  • Producing dried stock or broth
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Healthy eating index
  • Price of poultry meat
  • Price of red meat

  • Current Performance
  • Declining sales
  • Can vs. carton
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Declining demand
  • Industry structure
  • Table: Stock & Broth Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Stock & Broth Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Food Service Contractors

  • Key Selling Industries
  • Beef Cattle Production
  • Chicken & Turkey Meat Production
  • Hog & Pig Farming
  • Vegetable Farming

  • Products & Services
  • Brand-name liquid stock and broth
  • Private-label liquid stock and broth
  • Bullion, dried and other varieties
  • Chart: Stock & Broth Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Grocery wholesalers
  • Food service industries
  • Mass merchandisers
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Stock & Broth Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Stock & Broth Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Stock & Broth Production Industry

  • Industry Globalization
    Campbell Soup CompanyGeneral Mills Inc.
  • Table: Campbell Soup Company - financial performance
  • Table: General Mills Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Stock & Broth Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Stock & Broth Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aseptic
  • Free from contamination by bacteria, viruses or other microorganisms.
  • Broth
  • A liquid produced by simmering meat, vegetables and spices to create flavored base for soups and other foods.
  • Stock
  • A thin liquid produced by simmering raw ingredients, especially bones, and is typically unseasoned.
  • Why buy this report?

    IBISWorld’s Stock & Broth Production Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Stock & Broth Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Stock & Broth Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Stock & Broth Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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