The industry's slow growth is expected to accelerate as consumers buy more premium goods
New York, NY (PRWEB) June 18, 2014
Over the past five years, the Cookie, Cracker and Pasta Production industry has achieved slow growth. Improving discretionary income levels allowed consumers to trade up to premium and branded goods, helping lift industry performance. However, growing concerns regarding the healthfulness and nutritional quality of products made with refined white flour have placed downward pressure on the demand for traditional industry goods. In response to these concerns, as well as diet trends that curb the consumption of wheat-based food, producers introduced a variety of brand extensions, including non-wheat pasta, gluten-free cookies and nutrient-enhanced crackers. Product innovation and a strengthening domestic economy are expected to drive industry revenue to grow an annualized 1.0% to $2.8 billion in the five years to 2014, including a projected increase of 0.9% in 2014.
According to IBISWorld Industry Analyst Hester Jeon, “Producers benefited from the growing demand for biscuits and pasta in foreign markets.” Despite an appreciating dollar, exports increased during this period, with the trend driven by the United States. Furthermore, the United States accounts for over 90.0% of total exports. The United States imports biscuits and dried pasta from Canada because Canadian imports are relatively more affordable than products produced in the United States. While the industry benefited from increased foreign demand for its goods, producers also faced intensifying competition from foreign manufacturers. As disposable income increased, some consumers traded up to imported products from the United States and Italy.
In the next five years, the industry is anticipated to grow as the domestic market strengthens. “As disposable income levels continue to improve, more consumers will trade up to premium, value-added goods at retail stores, helping lift industry revenue,” says Jeon. Also, a depreciating dollar will make Canadian goods more affordable in foreign markets, facilitating the growth of exports. While producers will face intensifying competition from foreign manufacturers and producers of alternative goods, such as bread and potato chips, product innovation and the introduction of healthier band extensions will support the growth of the industry. Overall, IBISWorld forecasts industry revenue to grow over the five years to 2019.
For more information, visit IBISWorld’s Cookie, Cracker & Pasta Production in Canada industry report page.
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IBISWorld industry Report Key Topics
The Cookie, Cracker & Pasta Production in Canada industry makes cookies, crackers and pasta from purchased ingredients, such as flour, sugar, salt, seasoning, emulsifiers, flavourings, 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.
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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