Cookie, Cracker and Pasta Production in the US Industry Market Research Report from IBISWorld has Been Updated

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Operators are increasingly catering their products to health-conscious consumers, introducing innovative snack foods that incorporate healthy ingredients; higher household disposable income will also drive demand for cookies and crackers going forward. For these reasons, industry research firm IBISWorld has updated a report on the Cookie, Cracker and Pasta Production industry in its growing industry report collection.

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

The Cookie, Cracker and Pasta Production industry benefited from increased demand for cookies and crackers during the past five years as household disposable income increased, which offset declines in pasta consumption. 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. “Many small- to medium-size companies, however, were unable to pass on cost increases to consumers without severely damaging demand and either merged with larger companies or exited the industry,” says IBISWorld industry analyst Jeffrey Cohen. This trend caused the number of enterprises to decrease at an average annual rate of 0.5% to 671 in 2013. Overall, IBISWorld expects industry revenue to rise a mere 1.7% annually on average during the five years to 2013 to total $23.5 billion; this includes growth of 0.6% from 2012 to 2013.

During the past five years, foods with high sugar content were increasingly linked to diabetes and other preventable diseases in the media, making consumers 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,” adds Cohen. “The success of these healthier options raised demand for Cookie, Cracker and Pasta Production industry products, expanding profit in 2013.”

The industry has a moderate level of market share concentration; concentration increased slightly over the past five years due to mergers and acquisitions among industry operators. For instance, major player Kellogg Company acquired IndyBake Products LLC. And Brownie Products Co. in 2008, 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.

The industry's future prospects look bright, with faster revenue growth anticipated through the five years to 2018, compared with the previous five years. Forecast increases in household 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. Furthermore, price increases for wheat are anticipated to provide an additional boost to industry revenue. As a result, revenue is projected to grow during the five-year period to 2018. For more information, visit IBISWorld’s Cookie, Cracker and Pasta Production in the US industry report page.

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IBISWorld industry Report Key Topics

This 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.

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Gavin Smith
IBISWorld
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