ERS Charts of Note

Wednesday, April 26, 2023

Errata: On April 28, the Chart of Note from Wednesday, April 26, 2023 was revised to correct the 2021 total sales, shipment values, and revenue from food and beverage manufacturing plants. The chart source was also revised to correct the survey year. No other data were affected.

Food and beverage manufacturing plants transform raw food commodities into products for intermediate or final consumption by using labor, machinery, energy, and scientific knowledge. These plants accounted for nearly $1.019 trillion or 16.8 percent of sales, shipment values, and revenue from all U.S. manufacturing plants in 2021, according to the latest data from the U.S. Department of Commerce, Bureau of the Census’ Annual Survey of Manufactures. Meat processing is the largest industry group in food and beverage manufacturing, with 26.2 percent of sales in 2021. Meat processing includes livestock and poultry slaughter, processing, and rendering. Dairy product manufacturing, which ranges from fluid milk to frozen desserts, accounted for the second-most sales at 12.8 percent in 2021. Other important industry groups by sales include other foods (12.4 percent), beverages (11.3 percent), and grain and oilseeds (10.4 percent). Other foods include snack foods, coffee and tea, flavorings, and dressings. This chart appears in the Manufacturing section of the USDA, Economic Research Service topic page Processing & Marketing, updated March 2023.

Monday, March 13, 2023

According to the latest available Federal data, in 2021, the U.S. food and beverage manufacturing sector employed 1.7 million people, or more than 1.1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest share of employees (15.4 percent). In thousands of food and beverage manufacturing plants located throughout the country, these employees helped to transform raw agricultural materials into food products for intermediate use or final consumption. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, and recordkeeping, as well as nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. In 2021, meat and poultry plants employed the largest share of food and beverage manufacturing workers (30.6 percent), followed by bakeries (14.7 percent), and beverage plants (12.4 percent). This chart appears in the Ag and Food Sectors and the Economy section of the USDA, Economic Research Service data product Ag and Food Statistics: Charting the Essentials, updated January 2023.

Tuesday, February 15, 2022

USDA’s Supplemental Nutrition Assistance Program (SNAP) provides low-income U.S. households assistance to buy food items, which helps to support the economy during periods of high unemployment. Researchers at USDA’s Economic Research Service (ERS) studied the effect SNAP benefits had on the rural and urban economies during the period of high unemployment following the Great Recession from 2009–14. They found household spending of SNAP benefits contributed disproportionately more to the rural economy. SNAP benefits can only be used on food items—farm goods (such as fruits, vegetables, and milk) and processed foods (such as breads and pastas)—but using them frees up money to spend on other nonfood items. ERS researchers found SNAP benefit spending caused a ripple effect that helped to support local jobs and contributed to economic output through the production of goods and services. During the 6-year period, average annual SNAP benefit expenditures of $71 billion (in 2014 dollars) generated an annual increase in rural economic output of $49 billion and an urban output of $149 billion. Expenditures supported the employment of 279,000 rural workers and 811,000 urban workers. When measured in total dollars and numbers of jobs, household spending of SNAP benefits generated larger economic impacts in the urban economy. However, when measured as a share of total economic output and employment, SNAP generated larger relative impacts in the rural economy. Household expenditures of SNAP benefits increased rural economic output annually by 1.25 percent and rural employment by 1.18 percent. For the urban economy, SNAP benefits increased economic output by 0.53 percent and employment by 0.50 percent. This chart appears in the Amber Waves finding USDA’s Supplemental Nutrition Assistance Program (SNAP) Contributed to Rural Economic Output, Jobs Following the Great Recession, released December 7, 2021.

Wednesday, January 26, 2022

Collectively, Iowa, Kansas, Missouri, and Nebraska compose the largest hog processing region in the United States. More than 40 percent of all U.S. hogs are processed within the borders of this four-State area USDA’s National Agricultural Statistics Service (NASS) identifies as Region 7 of 10 Federal regions. The region is also home to more large and medium-size processing plants than the other regions. Large plants employ more than 1,000 people and medium plants employ 100 to 1,000 people. In the first three months of the (Coronavirus) COVID-19 pandemic (March–May 2020), Region 7 experienced a 40 percent decline in hog slaughter compared with rates during the same period in 2019. Labor shortages attributed to COVID-19 infections among workers resulted in slow production and temporary shutdowns at large processing plants for about 10 weeks. However, when looking at hog slaughter and reported COVID-19 cases for the entire year, slaughter increased even as cases of infection also increased. From June 2020 through the end of December 2020, weekly slaughter rates were generally on par with 2019 levels for the corresponding weeks. The recovery was in part due to improvements in labor availability and the adoption of plant-specific strategies aimed at improving worker safety and efficiency. Overall, hog slaughter for the region in 2020 was approximately 2 percent higher than in 2019, according to NASS’ Livestock Slaughter 2020 Summary, even with the sharp declines in production that occurred at the onset of the pandemic. This chart is drawn from Economic Research Service’s COVID-19 Working Paper: Changes in Regional Hog Slaughter During COVID-19.

Friday, June 26, 2020

In 2017, there were 36,555 food and beverage processing plants located throughout the United States, employing more than 1.7 million people. Some of the largest States had the highest number of food and beverage processing plants: California had the most plants (5,731), followed by New York (2,573) and Texas (2,273). These were also the top three States in number of total manufacturing plants in 2017. California and Texas ranked among the top four States in agricultural production in 2017, as well. California holds an important national position in several food and beverage processing industries—including wineries (1,499 plants), fruit and vegetable processing (333 plants), and coffee and tea manufacturing (100 plants)—because of its favorable climate for growing a variety of crops and other factors, such as its large ports and other infrastructure. In addition, California ranks second only to Wisconsin in the number of dairy processing plants (140). In New York, bakery manufacturing plants were the most numerous of the State’s food and beverage processing plants (1,197) in 2017, followed by wineries (207 plants) and breweries (171 plants). The top four food and beverage processing industries in Texas in 2017 were bakery manufacturing (669 plants), animal slaughter and processing (270 plants), and wineries and breweries (152 and 135 plants, respectively). This chart appears in the Manufacturing section of the Processing & Marketing topic page on the Economic Research Service website.

Wednesday, May 20, 2020

According to the latest available Federal data, in 2018, the U.S. food and beverage manufacturing sector employed more than 1.7 million people, or just over 1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest share of employees (14.6 percent). In thousands of food and beverage manufacturing plants located throughout the country, these employees were engaged in transforming raw agricultural materials into food products for intermediate use or final consumption. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, and recordkeeping, as well as nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. In 2018, meat and poultry plants employed the largest share of food and beverage manufacturing workers (29.3 percent), followed by bakeries (15.5 percent), and beverage plants (12.2 percent). This chart appears in the Ag and Food Sectors and the Economy section of the Economic Research Service data product Ag and Food Statistics: Charting the Essentials.

Thursday, June 21, 2018

In 2016, there were 35,457 food and beverage processing plants located throughout the United States, employing more than 1.5 million people. California had the most food and beverage processing plants (5,639), followed by New York (2,578) and Texas (2,252). These States were also the top three States in number of total manufacturing plants in 2016 and were among the four most populated States. California and Texas also ranked among the top four States in agricultural production in 2016. California holds an important national position in several food processing industries—including fruit and vegetables, sugar, wine, and coffee—because of its favorable climate for growing a variety of crops and other factors, such as its large ports and other infrastructure. The State also has numerous dairy processing plants to serve its large population and those of other States. In New York, bakery manufacturing accounted for the most food and beverage processing plants, followed by wineries and breweries in 2016. Bakery manufacturing and animal slaughter and processing industries accounted for 40 percent of Texan food and beverage processing plants in 2016. This chart appears in the Processing & Marketing topic page on the ERS website.

Thursday, June 7, 2018

In 2016, the U.S. food and beverage manufacturing sector employed more than 1.5 million people, or just over 1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest share of employees (14.1 percent). In over 35,000 food and beverage manufacturing plants located throughout the country, these employees were engaged in transforming raw agricultural materials into products for intermediate use or final consumption. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, recordkeeping, and nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. Meat and poultry plants employed the largest share of food and beverage manufacturing workers, followed by bakeries, and fruit and vegetable processing plants. This chart appears in ERS’s data product Ag and Food Statistics: Charting the Essentials.

Tuesday, November 7, 2017

In 2015, five States—California, New York, Texas, Pennsylvania, and Illinois—accounted for 38 percent of the 34,661 U.S. food and beverage processing plants operating that year. These States also have the highest populations and lead in agricultural production and manufacturing. California, with 5,531 food processing plants, had more than double that of second place New York (2,508 plants). California holds an important national position in several food processing industries—including fruit and vegetables, sugar, wine, and coffee—because of its favorable climate for growing a variety of crops and its ports. The State also has numerous dairy processing plants to serve its large population. In New York, bakery manufacturing accounts for the most food and beverage processing plants, followed by wineries and animal slaughter and processing plants. Texas ranked third for the most food processing plants (2,175); bakery manufacturing and animal slaughter and processing industries accounted for 39 percent of Texan food and beverage processing plants in 2015. This chart is from "Number of Food and Beverage Processing Plants Varies Across the United States" in the November 2017 issue of ERS’s Amber Waves magazine.

Monday, July 24, 2017

In 2015, the U.S. food and beverage manufacturing sector employed more than 1.5 million people, or just over 1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest share of employees (13.7 percent). In over 34,000 food and beverage manufacturing plants located throughout the country, these employees were engaged in transforming raw agricultural materials into products for intermediate or final consumption. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, recordkeeping, and nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. Meat and poultry plants employed the largest share of food and beverage manufacturing workers (31 percent), followed by bakeries (16 percent), and fruit and vegetable processing plants (11 percent). This chart appears in the ERS data product, Ag and Food Statistics: Charting the Essentials.

Wednesday, May 24, 2017

Looking for a new type of chip or dip or soft drink to serve at your Memorial Day cook out? In 2016, food and beverage companies introduced 21,435 new products on U.S. retail shelves—new package sizes, new flavors, new packaging, and truly new products. New beverages accounted for 18.5 percent of new food and beverage products in 2016, and snack products were second with a 14.8-percent share. Food retailers seeking profitable new products for their shelves often look for “trending” foods and beverages being sought by consumers, such as craft beers and wines and gluten-free snacks. Beer and wine accounted for 21 percent of the 3,975 beverages introduced in 2016. According to Mintel’s Global New Products Database, 3,172 snack products were introduced that year—820 more than in 2011. A growing snack selection could reflect more Americans grazing during the day rather than eating full meals. The increase in new snack products was led by snack/cereal/energy bars, wheat and other grain-based snacks, vegetable snacks, and meat snacks. Bakery foods—such as cookies and baking mixes—accounted for 12.6 percent of new 2016 products. The data for this chart are from the Processing & Marketing topic page on the ERS Web site.

Wednesday, April 12, 2017

Introducing “new” products—new package sizes, new flavors, new packaging, and truly new products—is one way that food and beverage companies try to woo consumers and increase sales. After 2 years of declining numbers of product introductions, 21,435 new foods and beverages made their debut on U.S. retail shelves in 2016—the largest annual number of product introductions since 2007. The number of new nonfood grocery items (beauty and personal care; health and hygiene; pet food and merchandise; and paper and cleaning products) increased in 2016 as well. During the Great Recession of 2008-09, consumers sought familiar products and avoided impulse buying. To appeal to bargain-seeking customers who wanted to simplify their shopping trips as well as purchase familiar products, retailers devoted less shelf space to new products. The number of new food and beverage products in U.S. retail outlets, as tracked by Mintel’s Global New Product Database, fell from 22,142 in 2007 to 15,637 in 2009. The number of new foods and beverages rose again in 2010, while new nonfood grocery items continued their downward trend until 2016. This chart appears on ERS’s Processing & Marketing topic page, updated on March 9, 2017.

Thursday, April 21, 2016

In 2014, total food-away-from-home expenditures of U.S. consumers, businesses, and government entities surpassed at-home food sales for the first time. This outcome is reflected in the 32.7-cent foodservices share of the U.S. food dollar claimed by restaurants and other eating-out places—its highest level during 1993 to 2014. It is also reflected in the 12.9-cent retail-trade share claimed by grocery stores and other food retailers, which is at its lowest level since 2002. ERS uses input-output analysis to calculate the value added, or cost contributions, from 12 industry groups in the food supply chain. Annual shifts in food dollar shares between industry groups occur for a variety of reasons, ranging from the mix of foods that consumers purchase to relative input costs. A growing share of the food dollar has gone to farm producers, up 1.7 cents since 2009 to 10.4 cents in 2014, while food processing’s share is down 2.1 cents since 2009. This chart is available for years 1993 to 2014 and can be found in ERS’s Food Dollar Series data product, updated on March 30, 2016.

Friday, July 24, 2015

In 2013, the U.S. food and beverage manufacturing sector employed about 1.5 million people, or just over 1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest percentage of employees (14 percent). In over 31,000 food and beverage manufacturing plants located throughout the country, these 1.5 million workers were engaged in transforming raw agricultural materials into products for intermediate or final consumption. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, recordkeeping, and nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. Meat and poultry plants employed the largest percentage of food and beverage manufacturing workers, followed by bakeries, and fruit and vegetable processing plants. This chart appears in the ERS data product, Ag and Food Statistics: Charting the Essentials.

Thursday, September 11, 2014

ERS’s Food Dollar Series was expanded in 2014 to include 16 commodity specific at-home food dollars that break out the value added, or cost contributions, from 12 industry groups in the U.S. food supply chain. Comparing the bakery-products dollar with the red meat-dollar highlights the larger role of processing and marketing costs for processed foods. For bakery products such as breads, crackers, cookies, and other sweet goods, processing costs were the largest cost component at 37.7 cents in 2007. In comparison, processing costs made up 18.1 cents of the beef, pork, and other red-meat food dollar, while farm production and agribusiness combined at 26.6 cents was the largest cost component. (Agribusinesses produce the services and products used by farmers, such as veterinary services and fertilizers.) For bakery products, farm-production costs was one of the smallest components at 2.3 cents, smaller than packaging and advertising. Statistics for these dollars and the other 14 commodity food dollars for benchmark years 1997, 2002, and 2007 can be found in ERS’s Food Dollar Series data product.

Wednesday, June 11, 2014

In the United States, 31.1 cents of a typical dollar spent by consumers on domestically–produced food went to pay for services provided by foodservice establishments, 15.8 cents to food processors, and 13 cents to food retailers. ERS uses input-output analysis to calculate the value added, or cost contributions, to the U.S. food dollar from 12 industry groups in the food supply chain—expanded in 2012 to include agribusiness and wholesale trade. Agribusinesses produce products and services used by farmers, such as fertilizers and veterinary services. Wholesale trade companies provide services to all industry groups for the acquisition of products, such as when farmers purchase fertilizers produced by an agribusiness, restaurants purchase takeout containers from a packaging company, and grocery stores purchase produce grown on a U.S. farm. Wholesale trade accounted for 9.3 cents of the 2012 food dollar and agribusiness accounted for 2.4 cents. Previously, wholesaling costs were included with the costs of the industry groups the wholesale companies were servicing, and agribusiness costs were combined with farm production. In 2012, farm production accounted for 9.7 cents of the food dollar. This chart is available for years 1993 to 2012 from ERS’s Food Dollar Series data product updated on May 28, 2014.

Monday, November 18, 2013

The U.S. Food and Drug Administration (FDA) announced on November 7th that it plans to take further steps to reduce trans fats in processed foods. Since 2006, the FDA has required food manufacturers to post the amount of trans fats contained in their products. In response to the labeling regulations and media attention to the negative health effects of trans fat consumption, food manufacturers reduced their use of trans fats. ERS researchers found that the average trans fat level for new bakery products (including reformulated ones) declined from 0.49 grams per serving in 2005 to 0.13 grams in 2010—a decline of 73 percent. Trans fat levels for new prepared meals, desserts, snacks, and processed fish, meat, and egg products declined by about 50 percent over the period. More information about trans fats in new food products can be found in the ERS report, New Food Choices Free of Trans Fats Better Align U.S. Diets With Health Recommendations, EIB-95, April 2012.

Friday, July 12, 2013

While Americans may be willing to forgo calories in their soft drinks and desserts, they seem less willing to embrace foods with lower fat and sodium levels. Mandatory nutrition labeling and consumer concerns about fat prompted food manufacturers to offer lower fat versions of high-fat foods in the early and mid-1990s. Products with “low/no fat” claims grew from 9 percent of all new products in 1989 to over 25 percent in 1996. But many consumers found the taste of these new fat-free and low-fat foods disappointing, which may have led companies to limit their use of low/no fat claims. From 1997 to 2001, the percentage of new products with low/no fat claims fell from 22 to 10 percent. Concerns that consumers associate poor taste with reduced-sodium foods may have contributed to fewer low/no sodium claims, as well. Products claiming to be “low/no sodium,” “low/no salt,” or “no salt added” fell from 12 percent of all new products in 1989 to 3 percent in 2001, before rising to 5 percent in 2010. This chart appears in “Obesity and Other Health Concerns Lead Food Companies To Step Up Health and Nutrient Claims” in ERS’s July 2013 Amber Waves magazine.

Thursday, April 11, 2013

Over 7,000 new food and beverage products (including reformulated ones) appeared on grocery store shelves in 2010, and 3,134 of them carried health- and nutrition-related claims, such as “low sugar” or “high fiber,” on their packages. Claims related to gluten, trans fats, and calories were among those with the biggest increases over 2001-10. In 2010, 12 percent of new products claimed to be “gluten free,” up from 1 percent in 2001. Increases in claims related to calories, fiber, and sugar marked a reversal from previous trends during the 1990s. For example, the percent of new products showcasing their fiber contents, which had been falling since 1989, began to increase in 1998. Greater emphasis on health and nutrient claims likely reflects consumer interest in nutrition and obesity stemming from increased coverage of these topics by public and private sources and the media. The statistics for this chart are from the ERS report, Introduction of New Food Products With Voluntary Health- and Nutrition-Related Claims, 1989-2010, February 2013.

Wednesday, March 27, 2013

For each dollar spent in 2011 by U.S. consumers on domestically produced food, U.S. farmers sold 15.5 cents (farm share) of farm products, on average. The remaining 84.5 cents (marketing share) come from costs for transporting, packaging, processing, retailing, and other costs to market these farm commodities to domestic food consumers. ERS uses input-output analysis to calculate the average farm share and marketing share for the total food dollar, which includes both grocery store and eating out purchases. After falling to 14.1 cents in 2010, the farm share in 2011 rose to a level comparable with 2007-08 levels. This chart is from the Food Dollar Series data product on the ERS website, updated March 5, 2013.