As more consumers become health-conscious, producers will introduce healthier products
New York, NY (PRWEB) August 31, 2014
This is no time to toss your cookies aside. Over the past five years the Cookie, Cracker and Pasta Production industry has benefited from improving demand for industry products as per capita disposable income recovered from the recession. While the price of industry goods rose due to higher input costs, the post-recession environment caused many consumers to choose cooking pasta and baking for oneself in order to stretch their food dollars. Moreover, the rise of popular cooking television shows has younger generations increasingly deciding to buy their own pasta, baking mixes and dough to prepare their own meals and desserts. Many of the larger producers were able to pass on input cost increases to downstream markets and maintain demand for their products, a difficult feat for smaller producers. Despite lower profitability for smaller companies, new producers entered the industry to capture a share of the growing market for specialty goods.
According to IBISWorld Industry Analyst Melissa Imbruglia, “producers have focused on innovating healthful products in response to shifting consumer demand.” The leading manufacturers in this industry reformulated their existing products, and debuted low-calorie brand extensions and gluten-free and organic products. Producers benefited from charging a premium for these value-added snacks, pasta, and flour mixes, further boosting the industry revenue and profitability. Additionally, the growing importance of snacking in international markets convinced industry participants to expand their operations across the globe; most recently, in August 2014, Mondelez International opened its new India headquarters in Mumbai. Overall, industry revenue is anticipated to increase over the five years to 2014.
Industry prospects are optimistic, with revenue anticipated to grow over the five years to 2019. “Rising discretionary income enables consumers to purchase a greater volume of snacks and trade up to branded and premium products at retail stores,” says Imbruglia. Also, as health and nutrition become more important, demand for specialty products, such as gluten-free, organic and nutrient-enhanced food will rise and support the growth of manufacturers. Increasing demand for specialty products abroad will also boost industry exports, further supporting revenue growth. Consequently, IBISWorld projects industry revenue to grow in the five years to 2019.