Rising obesity rates and robust demand for convenient food products are two trends that helped revenue thrive. These products are also cheaper than other forms of weight loss.
Los Angeles, California (PRWEB) October 10, 2011
The Meal Replacement Product Manufacturing industry has experienced strong revenue growth in the five years to 2011. Rising obesity rates and robust demand for convenient food products are two trends that helped revenue thrive. These products are also cheaper than other forms of weight loss goods; therefore as the recession pinched, consumers continued to buy meal replacement products. As the economy recovers from the recession and disposable income rises and more people go back to work, more consumers will likely increase their spending on discretionary goods and on food products that can be eaten on the go.
In addition to rising revenue growth, the number of industry companies is expected to increase. Gotaas claims that “in the five years to 2016, the number of firms is expected to rise by an average of 2.5% per year to 269 firms. With profit margins of about 4.9% and revenue continuing to rise, this industry is quite attractive to new entrants. Employee numbers are expected to follow suit, with employment forecast to rise at an average of 1.9% per year to 13,983 workers.” Major companies already operating in this industry include Unilever and Abbott Laboratories, which have market share of around 10-11%. Abbott Laboratories produces the Ensure, EAS and ZonePerfect brands, while Unilever produces the Slim-Fast brand.
However, it’s not all good news. According to Gotaas despite robust growth, the industry has faced some setbacks. “Rising prices of raw material inputs like milk and soybeans have negatively affected the industry’s costs. The industry also faces strong competition from weight loss services. Many Americans are able to purchase more expensive weight loss treatments as the economy rebounds and disposable income expands.”
For more information visit IBISWorld’s Meal Replacement Manufacturing industry report.
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Companies in this industry manufacture meal replacement products and protein supplements. These products come as prepackaged powdered drink mixes, ready-to-drink beverages or edible bars designed to replace prepared meals.
Producing edible bars
Producing ready-to-drink shakes
Producing prepared powdered drink mixes
Major products and services in this industry
Meal Replacement Manufacturing Industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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