Shifts in consumer preferences underpinned the majority of industry growth over the past five years.
(PRWEB) January 16, 2015
Over the past five years, companies in the Dried Fruit and Vegetable Snack Production industry benefited both from improving economic conditions and shifting consumer preferences. As the economy continued to strengthen, renewed consumer spending helped boost demand for fruit bars, vegetable chips and other mixed snack foods that include dried fruit and vegetable inputs. In addition, as the price of fruits and vegetables increased, many larger producers were able to maintain earnings by passing on added costs to consumers in the form of higher prices. As a result, industry revenue is expected to increase steadily in the five years to 2015.
According to IBISWorld Industry Analyst Will McKitterick, “Shifts in consumer preferences underpinned the majority of industry growth over the period. Growing health concerns and awareness have driven up demand for healthy alternatives to traditional snack foods like potato chips and candy, which are high in sodium, fat and sugar.” Dried fruits and vegetables retain most of the nutritional value of fresh fruits and can be parceled into ready-to-eat packaging for easy consumption. In response to growing demand, producers have introduced more varieties of existing products by mixing dried fruits into granola bars and cereals or baking vegetables into chips. Many of these products are sold at a premium to health-conscious consumers, which has helped widen industry profit margins over the past five years.
IBISWorld anticipates the Dried Fruit and Vegetable industry to continue growing over the next five years, buoyed by growing demand in the United States and abroad for healthy snack alternatives. “Rising per capita disposable income will allow more consumers to comfortably purchase higher-priced dried fruit and vegetable products,” says McKitterick. “Producers will also continue to capitalize on the health consciousness movement by producing new varieties of products classified as organic and natural.” Additionally, operators' earnings are expected to remain high as the price of fruits and vegetables stays elevated, enticing more operators into the industry. The vast majority of new entrants will be niche, small-batch producers of premium products. Overall, industry revenue is expected to grow at a faster pace through 2020 than it did in the previous five years.
For more information, visit IBISWorld’s Dried Fruit and Vegetable Snack Production in the US industry report page.
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IBISWorld industry Report Key Topics
Dried fruit and vegetable manufacturers dehydrate and package purchased produce. These products are typically eaten by consumers as snacks or used as ingredients in salads and other 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
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