Baking Mix & Prepared Food Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

The Baking Mix and Prepared Food Manufacturing industry is set to experience more growth over the next five years, due to strong demand for prepared foods to eat on the go. In particular, the time-poor population and declining unemployment will boost demand for faster home-prepared meals, and thus the products this industry provides. IBISWorld expects the price of processed food to rise, which will result in a higher demand for some industry products that are used in other food manufacturing. Also, export markets are set to rise, with demand from Japan, Korea and China set to be strong. For these reasons, industry research firm IBISWorld has updated its report on the Baking Mix & Prepared Food Manufacturing industry.

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IBISWorld Market Research

IBISWorld Market Research

An increasingly busy population will drive demand for prepackaged foods

Los Angeles, CA (PRWEB) October 08, 2012

The Baking Mix and Prepared Food Manufacturing industry has bounced back from a poor showing following the recession. Consumers' disposable incomes plummeted during the recession, which deterred them from buying discretionary industry products such as dessert mixes and sweeteners. As a result, industry revenue fell 0.4% in 2009 and 0.5% in 2010, according to IBISWorld industry analyst Olivia Tang. However, Americans' lifestyles are becoming more fast-paced, causing consumers to demand more pre-packaged foods and easy-to-prepare meals such as noodle mixes. In addition, more and more health-conscious consumers are seeking out healthier food options. This trend is driving up demand for pre-cut fruit and artificial sweeteners, which will lead to industry revenue growing 2.6% in 2012. Thus, higher demand for healthy and convenient meal options is anticipated to offset previous revenue declines, causing revenue to grow at an annualized rate of 1.7% to $22.9 billion during the five years to 2012.

Baking Mix and Prepared Food Manufacturing industry products are characterized by high profit margins because their convenience commands a premium. However, the cost of key inputs has been high and volatile during the past five years. For example, the price of corn jumped 58.0% in 2011, cutting into industry profit, Tang says. Some firms were able to pass on the high cost of major commodities in the form of higher prices to maintain profit. In addition, because companies have been investing more in technology to raise production volumes while making processes more efficient, per-unit costs have fallen.

In the next five years, the industry is forecast to continue growing. As more Americans return to work, they will have less time to cook meals and demand for pre-packaged foods will continue to rise. In addition, industry consolidation, through acquisitions, will allow resulting enterprises to better serve the global market, furthering export growth. Consequently, revenue is projected to grow during the five years to 2017. The convenience factor will also allow firms to continue charging a premium for their products. The industry continues to face intense internal competition so some firms are willing to invest in mergers and acquisitions, which increase market concentration slightly. The consolidation of ownership is expected to increase in the future engendered by acquisitions, continued product innovation, strong brand loyalty and aggressive marketing initiatives. For more information, visit IBISWorld’s Baking Mix & Prepared Food Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures perishable prepared foods, such as sandwiches, prepared meals and peeled or cut vegetables. Firms in the industry also use dried and dehydrated ingredients to manufacture dessert mixes, flavoring powders and processed eggs.

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 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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