Demand for premium-priced healthier popcorn is driving the industry's growth
New York, NY (PRWEB) January 13, 2015
The United States has become the top producer and consumer of popcorn worldwide, in part due to the growth of the microwavable popcorn over the last 30 years. The Popcorn Production industry has faced multiple challenges in recent years. Most notably, consumers tightening spending during the recession and the rising volatility of the price of corn over the past few years have threatened operators. Additionally, health-conscious consumers have become wary of eating high-calorie and high-sodium popcorn varieties and have become cautious of the effects that microwaves have on food products. Nevertheless, the industry has remained resilient due to major companies' ability to quickly adapt to changing consumer preferences by introducing healthier product lines. Furthermore, as the economy began to recover, consumers regained disposable income, driving demand for premium-priced gourmet and organic popcorn products. Over the five years to 2014, industry revenue is expected to decline.
According to IBISWorld Industry Analyst Melissa Imbruglia, “industry producers have benefited from effective marketing, and a limited amount of fellow operators to contribute to competition.” These producers can charge premium prices for their products and have the flexibility to try new product lines and popcorn varieties. Major producers' ability to charge a high price has also allowed them to maintain profitability despite rising input costs. The price of corn skyrocketed in 2011 due to escalating ethanol demand from biofuel producers (which also uses corn as an input). “As the price of corn fell and sales from microwavable popcorn grew for most producers in the following years, industry profit grew,” says Imbruglia.
IBISWorld forecasts that the industry will continue to grow as popcorn is cemented a healthy alternative to other snack products and producers continue to develop flavorful and nutritious products. Although certain commodities and downstream markets are susceptible to volatility, this industry has shown it is able to weather the storm due to popcorn's timeless appeal in the American household. Revenue is forecast to grow over the five years to 2019.
For more information, visit IBISWorld’s Popcorn Production in the US industry report page.
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IBISWorld industry Report Key Topics
The Popcorn Production industry produces popcorn, including microwaveable, ready-to-eat and other consumer packages of unpopped popcorn.
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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