Why Are Funyuns So Expensive? (7 Reasons Why)

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Maisie Hughes

Maisie Hughes is a 20-year veteran of the culinary world. She has worked as a chef in some of the most prestigious restaurants in the country, and she currently volunteers her time at local food banks.

Are you a fan of corn chips and other snacks such as onion rings? Well, you probably tried Funyuns, an onion-flavored ring made from cornmeal.

Of course, you might also wonder why a pack of snacks becomes so expensive. Join me in discovering why!

Why Are Funyuns So Expensive?

Funyuns are expensive because they are popular and in demand, especially among the younger generations. Funyuns don’t contain cholesterol and have zero transfats. Aside from the manufacturing costs and the inflation that cause Funyuns to be even more expensive, they are known to have a distinct flavor that people love.

So, are you ready to learn more about how Funyuns have become expensive? Here are seven reasons why. Continue reading!

1. Funyuns Are Popular

Funyuns have been a popular and favorite snack in the US since 1969 and in some other countries for many years.

In fact, in 2020, a statistic shows that the number of packs of Funyuns consumed in the United States within a month is exorbitant.

That said, 2.02 million Americans consumed eight or more bags of Funyuns in 2020 alone, and that’s how popular Funyuns are.

Of course, when a product is popular, the demand will increase, so the company’s production will also increase.

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2. Funyuns Contain No Cholesterol

Funyuns are cholesterol-free, trans-fat-free, and low in saturated fat. As a result, although being designed after classic fried onion rings, they do not pose the same nutritional hazards.

Also, Funyuns don’t make your fingertips oily or act as cheesy dust magnets.

Of course, these factors catch the attention of health-conscious people, resulting in a much larger market, making the product more in demand and expensive.

3. Funyuns Are In Demand

Frito Lay has stated that snack demand is rapidly increasing in the United States, and people increase their desire to pack snacks, fueling the demand for Funyuns.

Since Funyuns are known to be cholesterol-free, people want this snack even more, making the market demands higher.

Of course, extreme demand will cause a price hike since the company will manufacture more products, expanding production costs; the market price will have to increase too.

4. Funyuns Manufacturing Costs

4. Funyuns Manufacturing Costs

Frito Lays employs over 750 full-time workers at its Rosenberg plant, the company’s largest plant in Texas.

Further, it manufactures over 117 million pounds of snacks yearly; of course, having many employees, the company has high operating costs to cover.

Therefore, to profit, the company will pass on the expenses to the consumers, making the product costs high when it hits the market.

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5. The Overall Inflation Affects Funyuns Market Price

When prices rise due to inflation, businesses face higher raw material, production, and overhead costs. As a result, they have increased their product pricing as well.

Of course, Frito Lay is not exempt from inflation; the company also suffers from all the price hikes, and to continue to make a profit, it has to increase Funyuns’ price in the market.

So, inflation is one apparent reason why Funyuns have become so expensive.

6. Funyuns Ranked 143 For Healthy Snacks

Funyuns are not vegan because they contain buttermilk. But, despite this, they were at 143 out of 164 on the list of healthy snack chips.

Even though, not 100% guaranteed that Funyuns are indeed a healthy snack, they contain less nutritional risk than other corn snacks on the market.

So, because of this recognition, Funyuns is in control of how the company wants to price the product.

7. Funyuns’ Distinct Flavor And Shape

Although Funyuns are commonly mistaken for fried onions in recipes, you’ll be surprised to learn that this snack contains no actual onions.

Instead, a sprinkle of onion powder is added with the flavor because it’s considerably simpler to sustain the flavor and taste in the production process using onion powder instead of real ones.

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So, although they have a unique shape resembling fried onion rings, they come in a pack that you can store in your pantry and eat whenever an onion craving strikes.

Therefore, those who love hot fried onion rings will surely add to the millions of Funyuns consumers, another factor for Funyums’ high market price.

To learn more, you can also read our posts on why pizza is so expensive, why macarons are so expensive, and why beef jerky is so expensive.

Conclusion

Overall, Funyuns are expensive because of their popularity and high demand; also, inflation affects how Funyuns increase their market price.

Additionally, Funyuns have higher manufacturing costs due to its more than 750 workers at the Rosenberg plant alone.

Author

  • Maisie Hughes is a 20-year veteran of the culinary world. She has worked as a chef in some of the most prestigious restaurants in the country, and she currently volunteers her time at local food banks.

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