Increasingly price- and health-conscious consumers cooked more at home, boosting salad dressing demand
Los Angeles, CA (PRWEB) June 18, 2012
The Salad Dressing Production industry was one of the few industries to benefit from the economic downturn. With price-conscious consumers increasingly shopping at their local supermarket or grocery store rather than dining out, demand for home-use salad dressing accelerated, according to IBISWorld industry analyst Caitlin Moldvay. In fact, in the midst of the economic downturn, industry revenue showed its strongest gains, rising on average 5.4% during 2008 and 2009. Over the five years to 2012, revenue for the Salad Dressing Production industry is estimated to increase at an average annual rate of 2.9% to $1.9 billion, with expected growth of 1.1% in 2012. The industry benefits from relatively stable consumer demand and, as a result, revenue volatility for the industry is typically low.
There are an estimated 63 companies operating in Salad Dressing Production industry. The industry is dominated by global manufacturing giants: Kraft Foods, Unilever and the Clorox Company combined control more than 50.0% of the market. Although ranch dressing remains the nation's favorite, industry players have expanded their array of vinaigrette dressings to take advantage of consumer health trends, which has fueled rising demand for oil-based rather than cream-based dressing, Moldvay said. Moreover, industry players continue to roll out new ethnic-oriented dressings with new flavor options such as ginger, chili and chipotle.
Over the next five years, the Salad Dressing Production industry will remain resilient with revenue forecast to rise. However, revenue growth will decelerate slightly due to the increasing propensity of consumers to dine out rather than shop at local supermarkets because of rising disposable income. Given that restaurants are more likely to produce their own salad dressing, this trend will mitigate revenue gains for the industry. The Salad Dressing Production industry carries a low to moderate level of market share concentration. The industry is dominated by Kraft Foods Inc., Unilever and The Clorox Company, three multinational manufacturing conglomerates, who combined account for more than half of the industry’s revenue. These corporations compete in a large global market and leverage their favorable economies of scale to consistently churn out new salad dressing flavors, variations and types for consumers in the United States. The remaining share of the industry is dominated by smaller, specialty salad dressing production firms. These firms tend to incorporate premium ingredients or nontraditional flavors to entice customers. Additionally, some firms, like Newman's Own, offer a range of organic products. Given the dominance of the industry's three largest firms, though, IBISWorld expects consolidation and concentration to increase as the largest firms acquire rising specialty salad dressing producers over the next five years. For more information, visit IBISWorld’s Salad Dressing Production in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that manufacture salad dressing. Most companies typically participate in a variety of sauce and condiment production activities. Industry manufacturers typically produce an array of different types of dressing, ranging from cream-based to oil-based dressings.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.