Continued demand for food safety consulting services is forecast to cause expanding prices in the three years to 2017
Los Angeles, CA (PRWEB) November 17, 2014
Food safety consulting services have a buyer power score of 3.2 out of 5. According to IBISWorld analyst Ian Buchanan, this score indicates moderate buying power that is strengthened by the high levels of competition within the market, but offset by the lack of available substitutes. However, buyers are expected to enjoy low volatility in the price of these services over the next three years.
The market for food safety consulting services contains a significant number of suppliers, including Bureau Veritas Group, Intertek Group PLC and SGS SA. As such, the top four vendors account for a small percentage of total market revenue, creating low market share concentration and indicating high competition among suppliers. Due to the high levels of competition, says Buchanan, suppliers are pressured to offer incentives to maintain their customer base and attract new buyers. Such incentives often include reduced pricing or favorable contract conditions, such as flexible payment terms. As a result, the competitive market contributes to stronger buyer power.
Despite the strengthened buying power from the high level of competition, the lack of available substitutes cuts into buying power. Buyers that have operations dealing with food products are required to meet various regulations set forth by a number of different organizations. To avoid legal complications, businesses operating in food-related markets must procure these services or hire permanent staff to monitor and maintain legal compliance, which can be more costly in the long run. Knowing that buyers have few other options, suppliers gain pricing leverage and buyer negotiation power is diminished.
Although buying power is relatively neutral, buyers are expected to benefit from the low volatility in the price of food safety consulting services in the next three years. The low volatility in the price presents buyers with minimal risk of experiencing extreme price fluctuations. As a result, the predictable prices will allow buyers to make more accurate cost estimations and precise budgets. Fortunately for buyers, the low volatility in the price of these services is forecast to continue in the next three years, providing buyers with continued benefits. For more information, visit IBISWorld’s Food Safety Consulting Services procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of food safety consulting services. Food consultants work with schools, hotels, hospitals, restaurants, agricultural operations, food product producers and food packaging firms to provide specialized information on health compliance, contamination risk and other areas. Suppliers can perform audits to determine whether or not the buyer's operations will pass all health inspections and can offer plans to maintain regulation compliant operations.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.