Snack Food Production in Canada Industry Market Research Report from IBISWorld Has Been Updated

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Moving forward, the industry is expected to benefit from an improved economy and rising disposable incomes, and negative health perceptions about chips are likely to be mitigated by innovations in the industry and by the positive health perception toward other industry products, such as nuts and seeds. For these reasons, industry research firm IBISWorld has updated a report on the Snack Food Production industry in its growing industry report collection.

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Rising levels of per capita disposable income and product innovation drive revenue growth in the industry.

The Snack Food Production industry processes a variety of snacks, including chips, nuts and nut butter. Popular products include potato chips, roasted nuts and peanut butter, although operators also produce popcorn, pretzels, pork rinds and other snacks. Demand for these products depends on the level of disposable income, since snacks are discretionary items, and consumer sentiment toward snack foods in general. Over the past five years, slow income growth and increasing health consciousness have subdued demand for industry products, limiting annualized revenue growth over the period. However, this includes forecast growth over 2015 due to better incomes and improved export revenue.

About two-thirds of industry revenue is generated from the production of chips, including potato, corn and tortilla chips. “Chips are typically high in sodium and in caloric content; but, to counter negative perceptions about chips among an increasingly health conscious consumer market, operators have been increasingly innovative in their production methods,” IBISWorld Economic Analyst Amal Ahmad says in the updated report. Specifically, baked and multigrain chips are beginning to replace the traditional fried varieties in a lot of markets. Low-sodium, low-calorie and single-portion snacks are also gaining traction among consumers.

The Snack Food Production industry is also benefiting from a small yet growing export market, especially in the United States. The United States boasts a huge market for snacks with strong demand for chips, peanut butter, popcorn and other industry products. Other export markets include Saudi Arabia, an emerging market with high incomes and an insatiable appetite for Western snacks.

Moving forward, the industry is expected to benefit from an improved economy and rising disposable incomes. In addition, negative health perceptions about chips are likely to be mitigated by innovations in the industry and by the positive health perception toward other industry products, such as nuts and seeds. “The industry will also likely benefit from ongoing weakness in the Canadian dollar against the US dollar, making Canadian snacks more affordable to US buyers,” Ahmad says in the updated report. Overall, IBISWorld expects favorable market conditions to spur revenue growth in the five years to 2020. Profit margins are likely to remain high, pulled up by the fat margins of major players, such as PepsiCo.

For more information, visit IBISWorld’s Snack Food Production in Canada industry report page.

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IBISWorld industry Report Key Topics

Operators in this industry primarily produce chips, including potato, corn and tortilla chips. They also process plain, salted or roasted nuts, seeds and nut butters such as peanut butter. However, operators do not produce cookies, crackers, bakery products or cereal and granola bars.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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 and Canadian 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.

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Gavin Smith
IBISWorld
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