1. Industry OverviewThe food processing or manufacturing industry includes businesses that transform animal and agricultural products into products intended for intermediate or final consumption. Processed foods are products in which a raw material is transformed into a processed product through the use of materials, labor, equipment and technology. According to the North American Industry Classification System (NAICS), the food processing industry can be classified into nine subsectors: 3111 animal feed manufacturing 3112 grain and oilseed milling 3113 grain and oilseed manufacturing sugar and confectionery products3114 manufacturing of canned fruits and vegetables and special foods3115 manufacturing of dairy products3116 manufacturing of meat products3117 preparation and packaging of seafood products3118 bakeries and manufacturing of tortillas3119 manufacturing of other food products1>. Industry Size and Value The food and beverage industry is one of the largest manufacturing sectors in the United States, accounting for more than 10% of all manufacturing shipments. The food industry has seen steady growth in recent years. Food manufacturers increase sales, profits and market share by restructuring, expanding opportunities in foreign markets, reducing costs and introducing new products. Continued globalization and the expansion of international trade also suggest that the U.S. food industry will be more strongly affected by global economic conditions and market trends. Food products manufactured in these establishments are generally sold to wholesalers or retailers for distribution to consumers, but the establishments are primarily engaged in the retail sale of baked and confectionery products produced on site, not for... ... middle of paper ...... linking brand equity and customer loyalty.5>. Market OutlookUnlike many other industries, the food sector tends not to be very sensitive to economic conditions. The U.S. food industry's growth prospects look promising for the remainder of 2013, as the economy improves and business confidence rebounds. The sector could be vulnerable to abrupt changes in the business environment, including currency and interest rate fluctuations, continued high energy and commodity prices and food crises, all of which could have a negative effect on the growth of the food industry.6>. Supply Chain and CustomsSupply chain issues such as ingredient availability and prices set by suppliers will continue to put downward pressure on food manufacturers' profit margins. Market liberalization will remain a driver of growth in the sector. CompetitionLeading companies