According to IBISWorld, the price of food safety consulting is expected to increase 1.5% over the next three years due to surging demand and higher input costs. While prices have been rising, buyers still benefit from the minimal risk of experiencing significant price fluctuations. "As businesses operating in food-related markets seek to ensure compliance with all safety laws, they are expected to rely more on food safety consulting services, encouraging suppliers to raise their prices and hampering buyer power. Still, mounting market competition will help mitigate more dramatic price increases," says IBISWorld procurement research analyst Anna Son.
The market for food safety consulting services contains a significant number of suppliers. As such, there is low market share concentration, which indicates high levels of competition among suppliers. Due to fierce competition, suppliers are pressured to offer incentives to maintain their customer base and attract new clients. Such incentives often include reduced pricing or favorable contract conditions, such as flexible payment terms.
Businesses striving to meet regulations set forth by the FDA, CDC, USDA and EPA will continue to drive demand for food safety consulting services. Specifically, demand from food product manufacturers and food services providers for food safety consulting services will rise. Furthermore, manufacturing output levels are expected to increase, indicating greater production from food processing plants, food product manufacturers and food packaging providers.
The full, 26-page report is available at http://www.ibisworld.com/procurement/food-safety-consulting-services.html.