The strengthening domestic economy will help drive demand for value-added products
New York, NY (PRWEB) December 06, 2014
The Baking Mix and Prepared Food Production industry is rising but displaying signs of slight stagnation as the industry matures. Nevertheless, the industry continues to benefit from rising disposable income over the past five years. As more consumers returned to work and saw their discretionary incomes increase, demand grew for baked goods and precooked convenient food items, such as prepared vegetables and refrigerated liquid eggs. Additionally, manufacturers introduced a variety of healthier prepared foods, appealing to a growing health- and nutrition-conscious consumer base. IBISWorld Economic Analyst Melissa Imbruglia says in the updated report “while health trends have supported increased demand for certain product segments, such trends have also curbed demand for other industry products, including dessert mixes, syrup and other dried and dehydrated products.” As a result, industry revenue is anticipated to grow over the five years to 2014.
Intensifying foreign competition has also hampered industry performance. Despite the US Food and Drug Administration's (FDA) discovery of tainted spice imports in 2013, industry imports experienced double-digit annualized growth during this period, driven by exotic spices and ingredients from India. Increasing purchases costs, exhibited by a high agricultural price index growth, also challenged domestic producers. Prices of corn, eggs and other key industry inputs grew substantially over the past five years and fluctuated substantially year-over-year, causing many manufacturers to raise product prices in order to maintain earnings.
The prices of key production inputs are expected to remain steady over the five years to 2019, which will allow producers to better adjust prices in order to maintain profit margins without damaging demand. “Additionally, the forecasted strengthening of the domestic economy will help drive consumer demand for value-added products, such as precut vegetables and prepared food,” Imbruglia says. Increasing incomes and changing consumption trends in East Asia are also anticipated to expand the size of the industry's export markets. Conversely, growing consumer health-consciousness is projected to continue curbing demand for processed products that have high fat and sugar content, such as dessert mixes and prepared meals. Overall however, Baking Mix and Prepared Food Production industry revenue is estimated to grow in the five years to 2019.
For more information, visit IBISWorld’s Baking Mix & Prepared Food Production in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry produce perishable prepared foods, such as sandwiches, meals and peeled or cut vegetables. Companies in the industry also use dried and dehydrated ingredients to produce dessert mixes, flavoring powders and processed eggs.
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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