Snack-Food Industry – Driving Factors

In: Business and Management

Submitted By simpty
Words 687
Pages 3
1

Snack-Food Industry – Driving factors

The snack food industry benefited from increased demand for several of the industry’s products during the past five years in line with rising household disposable income. In addition the industry has a moderate level of market share concentration. The top four players are accounting 43% of revenue. This revenue depends on numerous reasons and factors. One are the changing eating habits due to less frequent restaurant dining and hurried lifestyles that encourage on-the-go eating and a growing tendency to replace meals with common smaller snacks. Companies and businesses combat the raising obesity by developing healthier snack foods that still taste appealing. The boundaries between meals and snacks are growing ever blurrier, creating consumer consumption habits that will resonate for a long time. The children and kids of today, comfortable with replacing entire meals with snacks, will pass these lifestyle traits on to their children, assuring that eating snacks will remain a big part of life. Nevertheless consumers seek ways to achieve a healthier lifestyle because they become more aware of the negative health effects of eating foods that contain high levels of sodium. Therefore, producers quickly perceived the changing consumer tastes by offering more healthy options. Snack foods that are marked as “it is better for you” or “fatless” will remain popular. After accustomed to a special snack, this becomes a private label snack because consumers are looking for their best value when buying snacks. Due to inflation people are more likely to buy some snacks instead of going to restaurants and cooking for themselves, but at the same time inflation causes the price to go up on snack food. Consumer also look for new innovations, flavors and trends that make a big impact on sales and market shares. Another factor are the raw…...

Similar Documents

Food Industry-Brand India

...Food Industry Last Updated: June 2012 Introduction The food services sector in India is expected to witness a 50 per cent increase in investments in 2012 to about US$ 750 million, as food suppliers and retail companies plan to scale up business and stay competitive by tapping the large potential of the domestic market. Of the total investments of US$ 750 million in 2012, about US$ 165 million has gone into purely front-end retail, such as fast moving consumer goods (FMCG), food and beverage firms. India is the world's largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, 'Indian Dairy Industry Analysis'. The study anticipates that the milk production in India will grow at a compound annual growth rate (CAGR) of around 4 per cent during 2011-2015. Further, India has emerged as one of the largest potential markets for organic food consumption globally. The organic food is invariably catching up pace among the Indian retailers, especially with the niche retailers owing to wide awakening among Indian consumers towards leading a healthy life, as per RNCOS research report titled, 'Indian Organic Food Market Analysis'. We anticipate that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent. Indians spend US$ 64 billion annually on eating out, which includes $13 billion on eating in quick-service restaurants (QSRs) such as McDonald's and Costa Coffee,......

Words: 2109 - Pages: 9

Snack Food Industry

...When performing a five forces model for the snack food industry, I first looked at competition from rival sellers as I felt that this was the strongest threat for manufacturers. Rival sellers can easily try to produce a new line of products, mimic a competitor’s product, and it’s difficult to differentiate a snack food from the competition as there is so much competition. The market isn’t quickly growing, so rivals are competing for the same customer base and there is very little if any cost to switch from one snack food to the next. Many snack foods are very similar and there are hundreds if not thousands of competitors all fighting for the consumer’s purchase. A high competitive pressure exists from the sellers of substitute products as manufacturers can easily mimic existing snack foods. On a recent trip to Hyvee there were a number of snack foods on my list to pick up including potato chips, fruit snacks, and pretzels. For each of these items I had a variety of choices including a Hyvee brand for each which was the lowest price competitor, each product had a healthier option, and some even had a substitute product such as the flat pretzel snack rather than traditional. As consumers become more health conscious increased competition from the health foods industry will start to cross-over into the snack food industry. Competition from new entrants is moderate as it would be quite costly for a new start-up firm to purchase necessary equipment, create the......

Words: 689 - Pages: 3

Food Industry

...Sanna Ispahany Ms McGuire ENG 3U1-02 16 April, 2012 Food, cosmetics and pharmaceuticals. Every person in this room uses these some of the products produced under these three major industries several times a day, every day. Many of us believe that these products are safe for use and consumption; that the monitoring agencies put in place are doing their job. I too used to think that all of the products on the market were tested and unshakeably safe. I never would have begun to imagine that the hamburger at McDonald’s, or the shampoo I used, or the medicine I took could cause more harm than good. I never realized that these corporations were more concerned with their bottom lines than society. As consumers we place a great deal of trust in the manufacturers of our products to ensure their products are safe to use or consume and as consumers, these companies are robbing us of our right to know exactly what these products are, how they’re made, and what they contain. Most people have no idea of what really happens in these industries, and how these products come to be, as well as the shockingly low standards that exist. When I say cosmetics, I’m not talking about just makeup. I’m talking about deodorant, toothpaste, skin products, shampoo, conditioner, perfume, cologne, shaving cream, and hair products. These products are grossly neglected in terms of regulation; this is CLEARLY shown through products such as the “Pure and Gentle” Johnson’s baby shampoo which contained not......

Words: 1521 - Pages: 7

Food Industry

...Food Industry Summary Although businesses have no control over macro environment factors but working together with it and manage those factors to suit the business to an advantage. There are many factors in the macro-environment that will affect the decisions of the managers of any business. Tax changes, new law regulation, trade barriers, demographic and government policy changes are all examples of macro change. The PESTLE factors have great influences in all businesses upon any decision making in a given business environment. It plays a vital role as an analyzing tool in strategic management, influential factors and market trends which enable firms to have better understandings and more accurate view of the surroundings in which it is operating or which it intends to enter. As we apply PESTLE analysis to the Fisheries of the food industry sectors it has shown that over the past few years consumer behavior have changed to a more health conscious in their food consumption which seafood especially fish product have moved to the front line of healthy eating recommendations. It has high source of protein and also benefits in the omega-3 values, essential fatty acids and low in saturated fat. The UN’s food and Agriculture Organisations {FAO} estimates that seafood represents 16 per cent of the world’s animal protein intake sectors and the industry employs approximately around 35 million people globally. In Australia the governments have also implemented this by......

Words: 510 - Pages: 3

Food Industry

...3 ORGANIZATIONS IN THE FOOD INDUSTRY (McDonalds, Haldirams, Bittoo Tikki Wala) Table of Contents 1. Objective 2. Introduction 3. Parameters Defining Culture 3.1 Vision and Mission 3.2 Employment 3.3 Attrition Rate 3.4 Ambience 3.5 Home delivery 3.6 Menu 3.7 Cleanliness 4 Conclusion Table of Figures 1. Figure 2.4 - Menu for McDonlads 2. Figure 2.5 - Haldiram Logo 3. Figure 2.6 – Menu for Haldiram 4. Figure 3.2.1 - Employee training in McDonalds 5. Figure 3.2.2 - Employee of the month in McDonalds 6. Figure 3.2.3 – Employee 7. Figure 3.4.1 – Ambience at McDonalds 8. Figure 3.4.2 – Ambience at Haldirams 9. Figure 3.4.3 – Ambience at BTW 10. Figure 3.5.1 – Home Delivery Service at McDonalds 11. Figure 3.5.2 - Home Delivery Service at Haldirams 12. Figure 3.5.3 – Home Delivery Service at BTW 13. Figure 3.6.1 – Menu for McDonalds 14. Figure 3.6.2 – Menu for Haldirams 15. Figure 3.6.3 – Menu for BTW 16. Figure 3.7.1 – Cleanliness at BTW 17. Figure 3.7.2 – Cleanliness at McDonalds 18. Figure 3.7.3 – Cleanliness at Haldirams 1.Objective of the project To understand the working culture of three different organizations BTW , Mc Donald’s , Haldiram’s that operate in the same industry, which is the fast food catering industry, and also to highlight and compare the difference between their culture and working environment. Executive The food industry in India is marked by......

Words: 2717 - Pages: 11

The Fast Food Industry

...Case 2 The Fast Food Industry A Porter 5-forces model of the fast food industry-----Wu Rongrong The threat of new entrants in the fast food industry is high. Because there are no legal barriers which would keep them from entering the industry. The major barriers in which a firm faces in the industry are the economies of scale and the access of the distribution. In order for a firm to enjoy success in the industry, they must spend a large amount of capital on advertising and marketing. The industry is very competitive because firms are always attempting to steal customers from each other. Access for distribution is crucial in the restaurant industry because if the customer can’t see you or access you easily it’s possible that they won’t go out of there way to eat there. Franchise options also make is easier to enter the market, for example Subway has built their strategic plan around franchise options. Therefore, initially the only cost to enter the market is the starting capital required to open a restaurant. (1) On the one hand, the entry barriers are low. Most fast food restaurants are small size without any advantage. There is no brand advantage for the lack of famous brand, and the capital requirement is low. The resource is more, and the existing fast food restaurant cannot form barriers for the resources. Besides, the cost is low, and the existing fast food restaurant doesn’t have rich production experience and management technology. On the other hand, the......

Words: 5324 - Pages: 22

Scm in Food Industry

...Management and Challenges Facing the Food Industry Sector in Tanzania Juma Makweba Ruteri (Corresponding author) & Qi Xu Glorious School of Business and Management, Donghua University PO box 474, 1882 West Yan an Rd Shanghai, China Tel: 86-21-6237-3965 Abstract The complexities of food supply chain impose enormous challenges to the processors. As compared to multinational food companies operating in Tanzania, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the food industry sector was studied in a qualitative survey covered 23 food processing firms in Tanzania, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that food processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures. Keywords: Supply chain management, Inventory management, Customer perceived value, Food industry 1. Introduction Food industry is one of the largest branches of industries in Tanzania which is made up of......

Words: 7627 - Pages: 31

Food Processing Industry

...FOOD PROCESSING INDUSTRY SNEHA AGRAWAL 1226113152 SUMMARY India’s food processing sector is small and its share in exports of processed food in world trade has remained at about 1.5 percent or $3.2 billion. Food processing industry in India is increasingly seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and agriculture. productivity with slow adoption of technology. On the Infrastructure front, we have supply chain and wastage related problems and low levels of value addition etc. The other issues of concern, holding this sector back are impaired access to credit,inconsistency in state and central polices,which requires , low standards and lack of adequate manpower . White Revolution has benefited the rural areas of our country considerably, the revolution may not be sustained beyond a point because of the lack of purchasing power of the poor Indians The Government of India has allowed 100 per cent FDI under the automatic route in the food processing sector and taken various other measures to improve and expand the industry. INTRODUCTION The Indian food processing industry stands at $135 billion and is estimated to grow with a CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry......

Words: 2109 - Pages: 9

Patato Chips Adn Snack Foods

...Comparative Test Brand Rank Weight Price (in gm.) (in `) potato Chips Bingo Parle Lays Haldirams Pringles Uncle Chips 1 2 3 4 5 6 7 8 9 1 3 4 66 84 63 66 182 72 200 60 18 130 110 120 150 20 20 20 15 122 20 42 10 5 20 15 20 20 Branded Chips & Snacks Stay within Munching limits! Bikano Balaji Diamond Snack Food Kurkure Bikano Chatex Parle Fulltoss Haldiram’sTakatak 2 Branded chips and snacks have become part of the daily diet for rural and urban kids in india. Working parents prefer to buy the branded chips and snacks as they believe that these are prepared hygienically and will provid some amount of energy and nourishment that the children are deprived of because of their parents busy schedules. Parents tend to forget that chips and snacks are fillers and not a whole meal that provides nutrition in some proportion. Consumer VOiCe did comparative testing of well known chips and snacks brands to find out how well these products perform on health and hygiene parametres . Fortunately all the tested products were endorsed as hygienic and as far as being healthy, the manufacturer were playing with words – ‘no added msg’, ‘edible oil’, ‘iodized salt’. So many different names confusing even educated consumers searching for definition of these words in dictionaries rather than being able to make a quick decision as to which product is most suited for them. Read our report to help you make a better choice next time! F rom being a poor man’s staple......

Words: 4625 - Pages: 19

Snacks Food Industry

...Best Practices First Research is the leading provider of industry intelligence tools that help sales and marketing teams perform faster and smarter, opening doors and closing more deals. Without adding hours to your work-day, you can infuse sales calls, business meetings, presentations, and outreach The number one complaint about sales representatives that we hear from executives is, “they don’t know my business.” efforts with up-to-date industry information that demonstrates a thorough understanding of your prospects’ challenges and opportunities. We do the heavy lifting for you by analyzing hundreds of sources to create insightful and easy-to-digest industry information that can be consumed very quickly. You are better able to understand a potential or existing client’s business issues, without the time-consuming and expensive research process. The following is a sample of a First Research Industry Report with additional notes explaining the report’s contents and how you can use this valuable information. Report size varies by industry. FIRST RESEARCH - HOOVER’S INC., A D&B COMPANY www.firstresearch.com © 2013 Hoover’s, Inc. All Rights Reserved. 1 INDUSTRY PROFILE Snack Foods Manufacturing 12.3.2012 NAICS CODES: 31191 SIC CODES: 2068, 2096 The Industry Overview is an excellent way to ensure you make the right first impression, with minimal time invested. USE IT TO: . Quickly grasp how an industry operates. Adapt your sales process to fit your......

Words: 7090 - Pages: 29

Food Industry

...CASE STUDY HOMEWORK CORPORATE FINANCE 1 The Situation: In 2010 a new company was created in order to enter into the food industry. They spent many months in studying the market, engineering the products and the commercial strategy, find out the production plants. At the end of 2010 the business plan is ready and the company has already participated to an exhibition where many potential customers said to be very interested to the project. The problem: A private equity institution gets in touch with the company in order to buy 30% of the company buying new shares. The company wonders about the value of such shares, that is why the company asks a consultant to provide an estimation. The business idea: To manufacture in Italy, thanks to the well-known reliable partners, in order to maintain high quality. This way the company will be the leader in the market. To create franchising shops, in order to develop the brand and the customers' loyalty. To let franchisee pay weekly only the final goods he has already sold. This way: The company knows the daily amount of sales and also the product mix. Moreover it becomes easier to modify the production and to minimize the stock. Cash-inflows get closer, while the working capital investment becomes lower with a lower customer credit risk. Financial forecast: The business plan has been developed looking at an exhaustive market analysis. Forecast data are reliable; they refer to the first five years. The target is to open 80......

Words: 3191 - Pages: 13

Food Processing Industry in India

...FOOD PROCESSING IN INDIA Corporate Catalyst India A report on Indian Food Processing Industry 1. INDUSTRY OVERVIEW India is the world’s second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg and fish, fruits and beverages. For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined from 45 per cent to 44 per cent in rural India while the figure settled at 32 per cent of the total expenditure on food in urban India. A large part of this shift in consumption is driven by the processed food market, which accounts for 32 per cent of the total food market. It accounts for US$ 29.4 billion, in a total estimated market of US$ 91.66 billion. The Confederation......

Words: 8652 - Pages: 35

Fast Food Industry Research

...Research Project Critical Success Factors One industry that has seen steady growth over the past ten years is the fast food industry or quick service restaurants. It is no secret that Americans have a tremendous love for greasy, unhealthy, quickly prepared meals. Not only Americans, but people around the world seem to be enjoying the tastes the fast food industry has brought to the table with McDonalds emerging as one of the biggest brands in the entire world. The growth and increase in this industry does still have its drawbacks. With newly enlightened consumers becoming more meticulous about what they eat based on calories, fat, gluten and so on, many fast food franchises have been under the gun to maintain the status they have bolstered for so long. Rather than lie down and wave the white flag, many companies have begun offering new products derived from new methods of preparation. Nowadays, everyone is on the move, everyone’s time is precious and there is high demand for a quick bite to eat. However, these consumers do not necessarily want to compromise their health in the process. Chick-fil-A has emerged as the top chicken fast food chain in the United States. They control the most market share and have done so in quite extraordinary fashion. Prior to being the number one chain, they trailed Kentucky Fried Chicken, who controlled 40% of the market back in 1999 while Chick-fil-A only had nine percent (Lutz, 2014). Chick-fil-A’s average sale is three times the amount......

Words: 2152 - Pages: 9

Fast Food Industry

...Fast Food Chains Abstract The purpose of the study is to analyze the application of concepts and theories of managerial economics in relation to the actual data and information from the fast food industry and related companies. Two fast food chains have been studied and analyzed throughout the project. MacDonald’s and Burger King have been chosen as part of Fast Food industry because both companies are the biggest and closest competitors of each other; they both provide an insight of the frame of the industry, advantages and disadvantages of franchise system and production techniques, demand and supply chains, keys of success and weaknesses that could bust or hinder growth in short- and long-term. The study concentrates on demand and supply structure in the industry, market forms in which the industry can operate optimally, scope of production, production techniques, cost structures, prevailing market conditions and their impact on the firm, and financial analysis of the companies. To collect the relevant data, the companies’ annual reports were critically analyzed and evaluated for exact position to be sorted, the current market conditions to be measured and their possible future effects on the firms working environment to be evaluated. Companies’ Overview McDonald’s is located in 117 countries and on 6 continents and operates over 32,000 restaurants worldwide. McDonald’s is the clear market leader in the fast food industry. For 2010 the......

Words: 2758 - Pages: 12

Indian Food Processing Industry

...Marketing of Processed Food [Type the document subtitle] 9/1/2012 Sakshi Sethi Roll no. 53 INDIAN PROCESSED FOOD INDUSTRY The food processing Industry in India is of fundamental importance, holding as it does the vital link between agriculture and industry. This industry provides nearly 60 percent of all job opportunities by directly employing around 1.6 million workers. It is the fifth largest industry in the country in terms of production, consumption, export and growth. The worth of the Indian processed foods sector stood at USD 157 billion in FY2012; it is expected to touch USD 255 billion by FY2016 with 13 percent growth rate per annum. The availability of raw materials, changing lifestyles and relaxation in regulatory policies is fuelling the growth of this industry. India is the highest producer of milk in the world at 90 million tonnes per annum and the third largest producer of fish. With an arable landmass of 184 million hectares, it is the second largest producer of fruits & vegetables and the third largest producer of food grains. It has the largest livestock population as well. In addition to its large and wide-ranging raw material base, India has a huge consumer base of over one billion people. All these are positive factors that add vigour to the processed foods industry, which holds tremendous opportunities for large investments. With enormous scope for value addition, increase in the consumption of processed food products in India and many......

Words: 2141 - Pages: 9

รายการ เดอะเทรนเนอร์ ปั้นฝันสนั่นเวที ปี 4 | Grimore x Reverse - Tensei Kishin Roumantan | Pierre Étaix