Industry Analysis & Industry Trends
Stagnant performance for the Cereal Production industry over the past five years was largely guided by overall economic conditions. As per capita disposable income declined during the recession, more consumers turned to cereal as a healthy and inexpensive breakfast option. Over the five years to 2019, higher disposable income, coupled with the growing number of health-conscious consumers, will push companies to introduce more healthful products or create new cereal lines that will generate more demand... 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