Food Processing Industry

Food processing and handling (FP&H), which consists of three core sub-sectors—processing, packaging, and commercial food service equipment—is one of the most important sectors within Industrials. It represents a ~$100 billion market and has outperformed the broader Industrials segment over the past five years.

The Food Processing Industry is a mature sector that loosely tracks underlying demographic trends, such as population and income growth. Companies generate revenue from the sale of food and ingredients to a whole host of customers, ranging from supermarket chains and local bodegas to restaurants and other players further down the processing chain.

Food, of course, is one of life's basic necessities. As such, underlying demand tends to be steady through prosperous and difficult economic times. That said, food companies benefit from population growth. Also, higher aggregate personal income affords people "richer" diets and those on the margin may rely less on homegrown staples.

The North American Industrial Classification Systems (NAICS) categorizes the food processing industry into nine subsectors:

  1. Animal food manufacturing

  2. Grain and oilseed milling

  3. Sugar and confectionery product manufacturing

  4. Fruit and vegetable preserving and specialty food manufacturing dairy product manufacturing

  5. Meat product manufacturing

  6. Seafood product preparation and packaging

  7. Bakeries and tortilla manufacturing

  8. Other food manufacturing

Mail

364 E Main Street Suite 1011, Middletown, DE 19709

Call

T: +1 832 964 7973