| SIC Codes: | 2021 2022 2023 2024 2033 2034 2037 2038 2043 2044 2045 2046 2047 2048 2051 2052 2053 2061 2062 2063 2064 2066 2068 2074 2075 2076 2077 2083 2087 2098 2099 2015 2013 0751 5461 2026 2032 |
| NAICS Codes: | 311314 311351 311352 311824 311421 311422 311423 311511 311512 311513 311514 311520 311611 311612 311613 311615 311811 311812 311813 311821 311830 311911 311111 311119 311211 311212 311213 311221 311224 311225 311230 311919 311920 311930 311991 311412 311411 311340 311999 311313 |
Companies in this industry manufacture and process a wide variety of foods, including meat, seafood, dairy products, fruits and vegetables, milled grains and oilseeds, baked goods, and candy. Major companies include US-based Archer-Daniels-Midland (ADM), ConAgra Foods, Frito-Lay Kellogg, Kraft Foods, Mondelez International, and Tyson Foods; along with Grupo Bimbo (Mexico), Groupe Danone (France), JBS (Brazil), Maruha Nichiro Holdings (Japan), Nestlé (Switzerland), and Unilever (The Netherlands).
Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations, because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have economies of scale in purchasing and distribution. Small companies can compete effectively in local or regional markets and by developing popular products. The industry is concentrated: the 50 largest companies account for more than half of industry revenue.
Major products include processed meats (27 percent of industry revenue), dairy products (15 percent), processed fruit and vegetables (10 percent), edible oils (8 percent), pet foods (7 percent), and baked goods (5 percent). Companies in the industry also make snack foods, candy, milled grain products, seasonings and dressings, breakfast cereals, cookies and crackers, seafood products, coffee and tea, and sugar.