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 materials whose prices are increasing due to the global demand
that is growing as well....
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