Grab a handful: Industry revenue is expected to grow as exports and discretionary income rise

The Snack Food Production industry benefited from increased demand over the past five years as the economy continued to strengthen and discretionary income levels increased. In turn, renewed consumer spending has boosted sales of potato and tortilla chips, along with nuts and seeds. Shifting food consumption trends have affected the strategies of snack food producers during the period. Despite an improving economy and rising disposable incomes, the industry is expected to slow in the next five years...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
2.9%
Forecast Growth 18-23
Profit
Employment
8,952
Businesses
172
Market Share of Companies

Industry Threats & Opportunities

  • The industry is expected to benefit from an improving economy
  • The industry has become increasingly innovative with its production and marketing methods
  • Canadians are expected to continue buying some imported snacks, especially from the United States
  • Industry Report - Industry SWOT Analysis Chapter

    The Snack Food Production industry in Canada is well established and experiences full market acceptance of its products. Moreover, downstream markets are mainly established and unlikely to change. Consequently, this industry is in the mature stage of its lifecycle. Over the 10 years to 2023 industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 3.1%. In contrast, Canada's GDP is anticipated to grow at an annualized rate of 1.9% during the same period. A stronger contribution to the economy is typically indicative of a growing industry, however this industry also has mature characteristics that outweigh those growth factors in the long term...purchase to read more.

    Additional Insights for the Snack Food Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Snack Food Production Industry are

  • Ability to adapt to change
  • Ability to pass on cost increases
  • Product differentiation
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Canadian-dollar effective exchange rate index in the Snack Food Production industry impact industry performance..

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    What's in this report

    What is the Snack Food Production Industry?

    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, cereal or granola bars.

    Industry Products
  • Potato chips
  • Tortilla and corn chips
  • Other snacks
  • Peanut butter
  • Nuts and seeds
  • Industry Activities
  • Producing chips (potato, corn, tortilla and other)
  • Processing nuts and seeds and producing nut butters
  • Producing pretzels other snacks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Canadian-dollar effective exchange rate index
  • Total health expenditure
  • World price of wheat

  • Current Performance
  • Trade boom
  • Health concerns and innovation
  • High profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade slows
  • Product innovation
  • Industry structure
  • Table: Snack Food Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Snack Food Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada

  • Key Selling Industries
  • Corn Farming in Canada
  • Flour Milling in Canada
  • Fruit & Nut Farming in Canada
  • Vegetable Farming in Canada

  • Products & Services
  • Potato chips
  • Other snacks
  • Tortilla and corn chips
  • Nuts and seeds
  • Peanut butter
  • Chart: Snack Food Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarket and grocery stores
  • Grocery wholesalers
  • Convenience stores
  • Exports
  • Chart: Major Market Segmentation for the Snack Food Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Snack Food Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Snack Food Production Industry

  • Industry Globalization
    PepsiCo Inc.,
  • Table: PepsiCo Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Snack Food Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Snack Food Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Artisanal
  • Goods not made by machines, but rather, involve a high degree of human labour and craftsmanship. Considered a premium good.
  • Automated Coating Systems
  • Machinery that applies a liquid or a powder onto the surface of a product of any possible shape to convey new properties.
  • Economies Of Scale
  • The increase in efficiency of production as the number of goods being produced increases.
  • Gluten
  • A mixture of proteins found in wheat and other grains such as barley and rye. Individuals with Celiac disease cannot process gluten which is also the ingredient that gives dough its chewy texture.
  • Hull Removal
  • The process of separating seeds and nuts from their outer shell.
  • North American Free Trade Agreement (Nafta)
  • An agreement that went into effect in 1994 and created a trilateral agreement between Canada, Mexico and the United States.
  • Nut Butter
  • Spreadable foodstuff created by crushing nuts such as peanuts or almonds.
  • Premium
  • When producers charge consumers a price for their product that is more than its nominal value.
  • Private Label
  • Goods that are produced under a retailer's brand name are often positioned as lower cost alternatives to branded products.
  • Wholesale Bypass
  • Retailers that possess sufficient market power can purchase goods in bulk directly from manufacturers and forego the additional costs incurred by sourcing goods from wholesalers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Snack Food Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Snack Food Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Snack Food Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Snack Food Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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