Industry Analysis & Industry Trends
Overall economic conditions have largely guided the volatile performance for the Cereal Production industry over the past five years. As the economy continued to recover and per capita disposable income increased, people with relaxed budgets and less time returned to costly breakfast habits of obtaining food on the run at cafes or coffee shops. Over the next five years, revenue performance in the industry is forecast to improve compared with the previous five-year period. As the economy continues to recover, per capita disposable income is anticipated to increase, resulting in mixed demand for cereal products. This will enable consumers to spend more on expensive, branded products... purchase to read more
Industry Report - Starting a New Business Chapter
The most significant barrier to entry is the capital investment required to start a new company. Cereal production is highly capital intensive and it requires machinery and equipment to perform the processing. Because the level of capital intensity is increasing, new entrants that are unable to afford the capital investments will be unable to operate.
Another significant threat to potential new entrants is the extremely well entrenched position of the industry's major players. These companies experience high brand and customer loyalty and have considerable resources to invest in advertising and promotions to protect and grow their market share... purchase to read more