Snack Foods Manufacturing Industry Overview

Excerpt from Snack Foods Manufacturing Report

Companies in this industry make snack foods such as nuts, chips, and popcorn, as well as peanut butter. Major companies include US-based PepsiCo's Frito-Lay, Kraft Foods, Diamond Foods, and Snyder's-Lance; Grupo Bimbo (Mexico), United Biscuits (UK), Calbee Foods (Japan), and Nongshim (South Korea).

Competitive Landscape

Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in raw material purchasing, manufacturing efficiencies, distribution, and marketing budgets. Small operations can compete effectively by self-distributing products, selling online, or marketing snacks as gift items. The industry is highly concentrated: the top 50 companies account for 90 percent of industry revenue.

Products, Operations & Technology

Major products are potato chips (about 30 percent of industry revenue); corn chips, including tortilla chips (20 percent); and bulk nuts (10 percent). Other products include canned nuts, peanut butter, popcorn, hard pretzels, and other chips. Salty snack foods are found in most American households. More than half of Americans eat snacks two to three times per day, according to NPD Group. Potato chips are the most popular US snack, followed by tortilla chips, popcorn, and pretzels, according to Mintel Consumer Intelligence.