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Cookie, Cracker and Pasta Production in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Oct 07, 2013, 02:00 ET

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As more consumers become health-conscious, producers will introduce healthier products.

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Los Angeles, CA (PRWEB) October 06, 2013 -- The Cookie, Cracker and Pasta Production industry benefited from an increase in demand for cookies and crackers over the past five years as per capita disposable income increased, which offset declines in pasta consumption. According to IBISWorld Industry Analyst Jeffrey Cohen, “As the price of wheat and sugar increased, many large and established industry producers have been able to pass on cost increases to consumers in the form of higher product prices, driving revenue growth.” However, many small- to medium-size companies were unable to pass on cost increases to consumers without severely damaging demand and either merged with larger companies or exited the industry, causing the number of enterprises to decrease at an average annual rate of 0.5% from 2008 to 2013 to 671. Overall, IBISWorld expects industry revenue to rise at an average rate of 1.7% per year over the five years to 2013 to total $23.5 billion; this includes anticipated revenue growth of 0.6% from 2012 to 2013.

In the past five years, the media linked foods with high sugar content to diabetes and other preventable diseases, causing consumers to be more aware of the negative health effects that can occur from eating too many cookies and crackers. Producers quickly adapted to changing consumer tastes by offering more healthy options, such as whole grain crackers and reduced calorie snack packs for cookies and crackers. Companies successfully charged a premium for these products because consumers perceived them to be of higher quality than generic brand products. The success of these healthier options raised demand for industry products, expanding profit.

The industry's prospects look bright, with faster revenue growth anticipated in the five years to 2018, compared with the previous five years. Forecast increases in per capita disposable income will drive demand for cookies and crackers. “Additionally, as the number of health-conscious consumers continues to grow, producers will introduce a greater variety of healthier product options for cookies and crackers, which will increase demand for industry products,” says Cohen. Furthermore, price increases for wheat are anticipated to provide an additional boost to industry revenue. As a result, revenue is projected to grow over the five years to 2018.

The Cookie, Cracker and Pasta Production industry has a moderate level of concentration. The major companies in this industry are Mondelez International and the Kellog Company. Concentration increased slightly over the past five years due to mergers and acquisitions among industry operators. For instance, the Kellogg Company acquired IndyBake Products LLC and Brownie Products Co., expanding the company's product offerings and market reach. Concentration also increased among the major players as smaller companies exited the industry during the recession. Smaller companies make up the majority of enterprises, with about 84.6% of companies employing fewer than 100 workers. Companies employing more than 500 workers only account for 7.8% of enterprises, but generate over 50.0% of industry revenue.

For more information, visit IBISWorld’s Cookie, Cracker and Pasta Production in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Cookie, Cracker and Pasta Production industry produces cookies, crackers and pasta from purchased ingredients, such as flour, sugar, salt, seasoning, emulsifiers, flavorings, syrups, preservatives, gluten and food acids. The final products are then packaged and distributed to grocery wholesalers, supermarkets, specialty food stores and food service contractors.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]

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