Popcorn dominated by major companies Diamond Foods and ConAgra Foods
This is very cool news. Someone is looking at the industry.
The industry is dominated by major companies ConAgra Foods Inc. and Diamond Foods, while others hold smaller portions of market share. Concentration is expected to have increased slightly over the past five years, as the number of enterprises has fallen at an average annual rate of 2.2%. Concentration is expected to continue to grow further in the next five years as well.
Thursday, 17 January 2013
Popcorn consumption dates back thousands of years to Native American tribes eating Zea mays everta (corn grain) seeds and using it in necklaces and headdresses. However, popcorn did not become a mainstream snack until the Great Depression, when it soared in popularity due to its affordability. Since then, the United States has become the top producer and consumer of popcorn worldwide. Domestic popcorn demand peaked in the early 1990s with the growth of the microwave popcorn segment and has remained stable since. The Popcorn Production industry has recently faced multiple challenges. Most notably, consumers tightened spending during the recession, cutting demand for nonessential purchases like popcorn. Additionally, health-conscious consumers became wary of eating caloric and high-sodium flavored popcorn. Nevertheless, the industry remained resilient due to major companies' ability to quickly adapt to changing consumer preferences by introducing healthier product lines. “Furthermore, consumers continue to regain disposable income as the economy recovers, driving demand for premium-priced healthier and organic popcorn products, with revenue expected to grow 2.8% in 2013,” says IBISWorld industry analyst Agiimaa Kruchkin. Over the five years to 2013, industry revenue is forecast to grow at an annualized rate of 2.1% to $1.1 billion.
Sounds good. Lets see if we get any good reports soon. I have a great entry point at high $13's feel very safe at this point.
Yes, in the grocery store the other day, all I saw were Orville and Pop Secret. We have a local popcorn company here called Vics, but they don't sell on a national scale. Didn't realize there were so few popcorn makers.