The variety of dishes that use barbecue sauce provide barbecue sauce producers with ample protection from the economic shockwaves of the recession; moving forward, fast food restaurants are expected to boost industry revenue as demand from these restaurants is expected to grow. For these reasons, industry research firm IBISWorld has added a report on the BBQ Sauce Production industry to its growing industry report collection.
Los Angeles, CA (PRWEB) December 10, 2013
Barbecue sauce has become a regular item in kitchens and restaurants across the United States. The variety of dishes that use barbecue sauce provide barbecue sauce producers with ample protection from the economic shockwaves of the recession. Furthermore, as the popularity of organic foods increases in the United States, new barbecue sauce producers have emerged to meet demand for high quality sauces. According to IBISWorld Industry Analyst James Crompton, “Television shows showcase barbecue competitions that serve as advertising for the industry, and as economic conditions improve in the United States, more people are expected to purchase grills for barbecuing.” These factors have encouraged industry revenue to grow at an annualized rate of 1.7% to total $2.3 billion in the five years to 2013, including growth of 2.4% in 2013.
While the largest barbecue sauce producers are major consumer products conglomerates, such as Kraft Foods Group Inc., smaller industry operators have entered the market. In the five years to 2013, the number of industry enterprises is expected to increase at an annualized rate of 0.3% to 149. This trend is expected to continue moving forward, and IBISWorld estimates that the number of industry enterprises will continue to increase in the five years to 2018. As consumer confidence and spending increase, the industry is expected to grow during the five years to 2018.
Barbecue sauce is primarily served with meat dishes, so the amount of meat Americans consume influences the industry's performance. “In the five years to 2013, per capita meat consumption, which measures the amount of poultry and red meat an average American consumes in a year, is expected to decline at an annualized rate of 1.8%, influenced by weaker consumer spending caused by the recession,” says Crompton. However, fast food restaurants have consistently demanded barbecue sauce in the five years to 2013; over the period, consumers shifted from purchasing expensive cuts of meat to eating at fast food restaurants. In the five years to 2013, demand from fast food restaurants is expected to increase at an annualized rate of 1.0%. Moving forward, fast food restaurants are expected to continue boosting industry revenue as demand from these restaurants is expected to grow in the five years to 2018.
The BBQ Sauce Production industry has a moderate level of concentration. The three largest firms are: Kraft Foods Group, The HJ Heinz Company and HV Food Products Company. These major companies hold sizable advantages, including their ability to spend more on product development and marketing than smaller companies. As such, even though barriers to entry are relatively low, revenue from any one small operator will not represent a significant share of total industry revenue. Even independent companies that produce and distribute on a national scale, like Sweet Baby Ray's, will still likely generate far less revenue than major international conglomerates. The total number of industry enterprises has remained relatively stable since 2008.
For more information, visit IBISWorld’s BBQ Sauce Production in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Barbecue sauce manufacturers make liquid or dry seasonings and flavorings for use on barbecued meat, vegetables and other foods.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772. Reported by PRWeb 1 day ago.
Los Angeles, CA (PRWEB) December 10, 2013
Barbecue sauce has become a regular item in kitchens and restaurants across the United States. The variety of dishes that use barbecue sauce provide barbecue sauce producers with ample protection from the economic shockwaves of the recession. Furthermore, as the popularity of organic foods increases in the United States, new barbecue sauce producers have emerged to meet demand for high quality sauces. According to IBISWorld Industry Analyst James Crompton, “Television shows showcase barbecue competitions that serve as advertising for the industry, and as economic conditions improve in the United States, more people are expected to purchase grills for barbecuing.” These factors have encouraged industry revenue to grow at an annualized rate of 1.7% to total $2.3 billion in the five years to 2013, including growth of 2.4% in 2013.
While the largest barbecue sauce producers are major consumer products conglomerates, such as Kraft Foods Group Inc., smaller industry operators have entered the market. In the five years to 2013, the number of industry enterprises is expected to increase at an annualized rate of 0.3% to 149. This trend is expected to continue moving forward, and IBISWorld estimates that the number of industry enterprises will continue to increase in the five years to 2018. As consumer confidence and spending increase, the industry is expected to grow during the five years to 2018.
Barbecue sauce is primarily served with meat dishes, so the amount of meat Americans consume influences the industry's performance. “In the five years to 2013, per capita meat consumption, which measures the amount of poultry and red meat an average American consumes in a year, is expected to decline at an annualized rate of 1.8%, influenced by weaker consumer spending caused by the recession,” says Crompton. However, fast food restaurants have consistently demanded barbecue sauce in the five years to 2013; over the period, consumers shifted from purchasing expensive cuts of meat to eating at fast food restaurants. In the five years to 2013, demand from fast food restaurants is expected to increase at an annualized rate of 1.0%. Moving forward, fast food restaurants are expected to continue boosting industry revenue as demand from these restaurants is expected to grow in the five years to 2018.
The BBQ Sauce Production industry has a moderate level of concentration. The three largest firms are: Kraft Foods Group, The HJ Heinz Company and HV Food Products Company. These major companies hold sizable advantages, including their ability to spend more on product development and marketing than smaller companies. As such, even though barriers to entry are relatively low, revenue from any one small operator will not represent a significant share of total industry revenue. Even independent companies that produce and distribute on a national scale, like Sweet Baby Ray's, will still likely generate far less revenue than major international conglomerates. The total number of industry enterprises has remained relatively stable since 2008.
For more information, visit IBISWorld’s BBQ Sauce Production in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Barbecue sauce manufacturers make liquid or dry seasonings and flavorings for use on barbecued meat, vegetables and other foods.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772. Reported by PRWeb 1 day ago.