Operators will benefit from products that can be linked to fresh and healthy home cooking
New York, NY (PRWEB) October 10, 2014
The Stock and Broth Production industry has failed to record revenue growth in the past five years. Consumer spending fell during the recession, decreasing sales of many consumer goods, stock and broth products included. Rather than rebounding quickly, however, industry sales got stuck in a decline rut though 2011. Only in the years since has revenue turned a corner, although revenue growth has still been lackluster. During the five years to 2014, industry revenue has fallen.
According to IBISWorld Industry Analyst Will McKitterick, “Branding and marketing have proved to be an incredibly important part of improving stock and broth sales.” Industry operators have been fighting consumer perception that its products are outdated. The can as a packaging format, for example, speaks to an earlier generation of consumers. Today's consumers, eager for freshness in foods, respond much better to stock and broth packaged in a carton or pouch, leading most companies to package their products in one of these formats. The perceived healthiness of industry products can also affect sales; many consumers have shied away from industry products because they can be high in sodium or artificial preservatives. Ad campaigns countering these consumer impressions have made a small step toward improving consumer perceptions of industry products.
In the next five years, the way that stock and broth brands market to consumers will prove increasingly important. “Those that can link their products with fresh and healthy home cooking will likely realize stronger growth,” says McKitterick. Nonetheless, increasing disposable income is expected to drive consumer spending, a boon for industry players across the board. IBISWorld forecasts that industry revenue will grow at an annualized rate in the five years to 2019.
For more information, visit IBISWorld’s Stock & Broth Production in the US industry report page.
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IBISWorld industry Report Key Topics
Stock and broth manufacturers make liquid food bases out of animal and vegetable components. These liquid bases are generally used as ingredients in soups, gravy or sauces.
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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