Input costs and competition will rise, but demand for convenience will spur demand
New York, NY (PRWEB) December 24, 2014
Revenue for the Meal Replacement Product Manufacturing industry has grown strongly in the five years to 2014. Rising obesity rates and robust demand for convenient food products are two factors that have helped revenue thrive. These products are also more affordable than other forms of weight loss goods; therefore, in times of tight spending, such as during and immediately following the recession, consumers continued to buy meal replacement products. Despite industry growth, the industry has faced some setbacks. Rising raw material prices of milk and soybeans have hurt industry profitability. Nonetheless, Meal Replacement Product Manufacturing industry revenue is projected to increase at an average annual rate of 5.9% to $3.2 billion over the five years to 2014, including growth of 2.2% in 2014 spurred by stronger consumer spending on discretionary items.
According to IBISWorld Industry Analyst Jeremy Edwards, “As Americans continue to struggle with weight loss and aim to improve their nutrition, sales will increase.” Also, as job opportunities increase and more Americans go back to work, consumers will have less free time and demand more food products that can be eaten on the go. Therefore, consumers will be more likely to opt for industry products, which are portable and convenient, to the benefit of industry revenue. Similar to the previous five years, operators will likely experience higher input costs but will also face strong competition from weight loss services. Many Americans will be able to purchase more expensive weight loss treatments as the economy rebounds and disposable income expands.
“In addition to rising revenue growth, the number of industry companies is expected to increase,” says Edwards. In the five years to 2019, enterprises are expected to rise an average 2.0% per year to 496 companies. Industry profit margins are forecast to improve, and greater demand for health products is expected to bolster growth in the number of industry enterprises and overall employment.
For more information, visit IBISWorld’s Meal Replacement Product Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Meal Replacement Product Manufacturing industry manufacture meal replacement products and protein supplements. These products come as prepackaged powdered drink mixes, ready-to-drink beverages or edible bars designed to replace prepared meals.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld 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.