Consumers will opt for fresh produce rather than canned food products at grocery stores
New York, NY (PRWEB) December 31, 2014
The Canned Fruit and Vegetable Processing industry has declined in recent years due to mounting health concerns among consumers. The growing incidence of health complications, such as obesity, diabetes and heart disease, have caused consumers to shun processed foods in favor of fresh produce and prepared meals. Furthermore, concerns regarding the Bisphenol A (BPA) content of canned food have also placed downward pressure on demand for industry goods. According to IBISWorld Industry Analyst Melissa Imbruglia, “despite manufacturers' efforts to introduce healthier brand extensions and safer packaging, such as BPA-free cans, demand for industry products has waned, lowering industry revenue.” Overall, IBISWorld expects industry revenue to decline in the five years to 2014.
The leading producers of canned food have faced growing competition from generic brands provided by supermarkets and supercenters like Wal-Mart and Target. Value-added generic products, including organic varieties, have become more popular as they provide cost savings and convenience. Consequently, the leading industry operators kept their product prices low to compete with private-label products, further diminishing industry performance. Additionally, domestic producers faced intensifying competition from foreign companies, with imports forecast to account for near half the share of domestic demand in 2014. “While not the top importer, significant increases over the past five years from Brazil have contributed to declining domestic demand for industry products manufactured in Canada,” says Imbruglia.
Health consciousness is anticipated to continue driving the decline of this industry in the five years to 2019. Consumers will opt for fresh produce and ingredients rather than canned food products. The introduction of new, healthier products that offer safer packaging are anticipated to marginally buffer declining demand for industry goods. Additionally, higher per capita disposable income levels will allow consumers to dine out at restaurants more often and trade up to premium products, such as organic produce and frozen meals, further hampering the industry's performance. Overall, industry revenue is forecast to decline in the five years to 2019.
For more information, visit IBISWorld’s Canned Fruit and Vegetable Processing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Canned Fruit and Vegetable Processing industry purchases fruits and vegetables and processes them with other ingredients to create a variety of food products including canned fruit and vegetables, juices and drinks (except frozen), canned soups (except seafood), jams, baby food, sauces and dehydrated fruits and vegetables. The final products are then packaged and sold to consumers at various retail channels.
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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