Over stocked: Health-conscious consumer food trends are expected to continue, hindering industry growth
Stock & Broth Production
The Stock and Broth Production industry has a high level of concentration, with the top four manufacturers accounting for about three-quarters of industry revenue in 2019. Over the five years to 2019, these operators have held a firm grip on their industry position, benefit from strong brand loyalty and the ability to acquire rising players.
Ownership structure explained
• Campbell Soup Company dominates the industry, accounting for more than half of all industry sales. The company’s most prominent brand releases products under the Swanson name.
• General Mills Inc. also holds a significant market share, producing goods under the Progresso brand.
Industry leaders acquire trendy organic companies
• The industry’s dominant players have looked to acquire smaller, organic producers to adjust to changing consumer preferences. Campbell’s acquired Garden Fresh Gourmet in 2015 for $249.0 million and Pacific Foods of Oregon in 2017 for $700.0 million.
Competition from alternatives challenges top companies • Nonetheless, some players have struggled to adjust to a shifting industry, as strong competition from private-label brands and new breakfast options has remained strong. General Mills Inc.’s US retail business is expected to fall at an annualized rate of 4.2% to $112.2 million over the five years to 2019.
Stock and broth manufacturers make liquid food bases out of animal and vegetable components, and with dried stocks and broths that can be mixed with water. These products are generally used as ingredients in soups, gravies and sauces. However, the industry excludes establishments that process stock and broth with other ingredients before sale to consumers.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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