Industry Analysis & Industry Trends
The power of flour
Since flour mills provide goods that are considered diet staples, the industry will remain relevant in the years to come. Revenue and profit will depend on the price and production of wheat and rice, which are projected to be more stable in the five years to 2017 than during the past five years, but will grow at lower rates. As companies vertically integrate and merge operations in order to take advantage of economies of scale, consolidation is also anticipated to continue... purchase to read more
Industry Report - Industry Analysis Chapter
The Flour Milling industry grew over the past five years due to spikes in grain prices, which allowed firms to raise product prices and increase revenue. A shift in consumer preferences toward healthier food products also led Americans to consume more flour products, especially whole grain flour because of its contribution to cardiovascular health. However, the industry faces growing import penetration, coupled with decreasing industry exports, which escalates competition's damage to revenue. As a result of these conflicting factors, revenue is expected to rise moderately at an annualized rate of 2.6% to $21.3 billion during the five years to 2013... purchase to read more