Hot Dog & Sausage Production In The US Industry Market Research Report Now Available

New York, NY- The Hot Dog and Sausage Production industry manufactures products that hold a firm place in consumers' diets. Industry specialties like hot dogs, bratwursts, Italian sausages, pepperoni and breakfast sausages are popular inclusions in a variety of meals. For example, hot dogs and dinner sausages are staples in holidays typically celebrated with barbecued meals, while breakfast sausages are popular for both home-cooked and restaurant breakfasts. The well-established market for these products has boosted consumer spending on hot dogs and sausages in line with increased spending on all meat products. In the five years to 2014, industry revenue is estimated to grow.

Industry products have a slight competitive advantage over other meat products. Hot dogs and sausages are typically priced below other fresh, whole cuts of meat like steaks, chicken breasts, pork chops or bacon. Therefore, when meat prices rise across the board, cash-strapped consumers switch from pricier meats to hot dogs and sausages. On the other hand, when meat prices decline, consumers do not abandon hot dogs and sausages for steaks and burgers; industry products still maintain a solid consumer base. This dual appeal, both in terms of pricing value and product preference, helps keep the industry from becoming too volatile and enables profit margins to remain fairly stable.

According to IBISWorld Industry Analyst Antal Neville, “Two trends that have emerged in the past five years will continue to drive the industry in the five years to 2019.” The first is merger and acquisition (M&A) activity. The two largest industry players, Tyson and Smithfield, have undergone significant M&A activity over the past five years. These and other food-manufacturing powerhouses will leverage brand value and economies of scale to increase their market share, pushing up their revenue and profit growth.

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