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Popcorn Production in the US Industry Market Research Report Now Available from IBISWorld
Date:1/14/2013

Los Angeles, CA (PRWEB) January 14, 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.

Industry operators also benefited from effective marketing, which solidified companies' brand-name reputation. “Producers are charging premium prices for their products' perceived superior quality and are growing their pool of customers willing to pay these high prices,” continues Kruchkin. Major producers' ability to charge a high price also allowed them to maintain profitability despite rising i
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