Industry Analysis of Consumer Staple

Consumer Staples are the goods which cannot be cutout from daily usage regardless of people financial position. Its stocks are also considered to be non-cyclic like it will always be in demand no matter how economy is performing. Consumer Staples is always be in constant level irrespective of prices. In terms of Global revenue of Consumer staples sector, it is contributing around $447 Billion in the industry. Industries include Food and Staple Retailing, Food, Beverages, Tobacco, Household & Personal Products. It also includes retailing of Pharmaceutical products, Supermarkets; Hyper retail markets.Major customers including Mass Merchandiser, Whole sale stores and specialty outlets. Consumer Industry is under-performing in S&P 500 indices .Its 1 year annual return is around 8.81% and price return is around $434.89.

Current trends of Consumer Staple sector fund characteristics are as follows; Market capitalization of this industry is around $3.22Trillion but according to S&P it has undervalued by average  -1% .Estimated EPS growth of 3-5 year is around 7.85%, dividend yield around 2.79%, Price Earning around 17.9% and return on equity is 20.47% as of 3-13-2014 Recent consideration of short selling is allowable because of unstable economic position. Some companies are modifying their objective to make healthier, nutritious products to increase and promote health conscious environment because of rising corpulence and regulatory pressure.

Companies like Coca Cola and Pepsi is expected to expand their portfolios in non-carbonated categories. Coca cola is positioning itself in new market and will competing with market leader Orangina Schweppes which has around 25% of market share in drinks and in tonic about 22%.On the other hand Pepsi Co. is planning to announce naturally sweetened, low calories soda i.e. Pepsi Next estimated that it will contribute to bring up sales in 2014.Coffee giant Starbucks Corps.  is also looking for expanding its portfolio to make new addition in more nutritional, healthy products in the menu. Phillip Morris is planning to come up in e-cigarette business by late 2015.

The year-end review of consumer staple sector is quite well from previous year and there are actually some companies where investor can invest for healthier profit.