Segments

Beverage

Companies in this segment produce carbonated and noncarbonated soft drinks, bottled water, ice, and alcoholic beverages.

Dairy

Companies in this segment manufacture dairy-based products from both raw and processed milk, as well as dairy substitutes.

Fruits and Vegetables

Companies in this segment distribute fresh fruits, vegetables, spices, and herbs. The main task of distributors is to get the fruit and vegetables from producers to customers, including both food retailers and foodservice providers.

Grain

In this segment, companies mill flour and rice, malt grains, and mixed prepared flour mixes and dough. Major products include flour, rice, and malted grains.

Meat, Poultry, and Seafood

Major products in this segment are wholesale meat products that will be cut or processed further, ground beef for commercial use, and "case-ready" items for retail use.

Sugar and Confectionery

Companies in this segment produce raw sugar from sugar cane, refine raw cane sugar, and produce refined beet sugar from sugar beets. The most widely used product for sugar manufacturers is refined sugar for both industrial and consumer use.

The Food and Beverage industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.


Primary Demand Drivers

  • Food consumption
  • Population growth

Profitability Drivers

  • Efficient operations, because products are commodities subject to intense price competition

From the Blog Blog RSS

One of the world’s favorite beverages and a major source of caffeine for many students and employees, coffee continues to be an integral factor in society’s daily routine.  According to Business Insider, coffee is the second most sought-after commodity in the entire world, with an industry that is worth over $100 billion across the globe.  In terms of exporting alone, the industry is valued at $20 billion and continues to be on the rise—on average, 500 billion cups of coffee are consumed on Earth every year.

Chewing-gum—from the baseball diamond to office workplaces, over 100,000 tons of gum is chewed per year around the world.  Dating back to ancient times, different versions of gum have been used as a means of trade in Africa, stress relievers in Greece, and a construction material in Central America.  To this day, chewing-gum continuous to hold its position as a popular commodity on our planet.

Sources

  1. Hoovers (Date Accessed: 6/1/2017)