III. Industry Analysis
The hot dog industry is a $19.2 billion dollar market in the United States. Americans spent over $7.68 billion on hot dogs last year with over 944 million pounds of product sold. The cities that consumed the most hot dogs were Los Angeles, New York, Dallas, Chicago, Boston, Philadelphia, Houston, and Atlanta. Citizens of New York spent the most ($133 million) on hot dogs.
The hot dog market can be segmented by meat type or distribution method. The types of meat typically used for hot dogs include chicken, beef, and pork. Distribution channels include supermarkets, convenience stores, ecommerce, food service, and food carts or trucks.
One of the primary market drivers for growth is increased urbanization, which is driving the consumption trends of more processed and prepared foods. In many growing cities, there is a rising demand for ready-to-eat foods. The primary market constraint is a growing desire for healthy options.
Trends in the hot dog market include low-fat hot dogs and high protein hot dogs. Additionally, new flavors of hot dogs have been introduced into the market recently such as spicy, teriyaki, and barbeque.