Imbalanced breakfast: The wealthier, more-rushed population has demanded fewer industry products

Changing consumer trends and economic growth have translated to a contraction in demand for the Cereal Production industry over the past five years. Low-carb diets have grown increasingly popular, limiting the number of consumers buying cereal. Moreover, industry revenue has declined as consumers have leveraged their rising disposable incomes to indulge in premium breakfast foods, such as breakfast sandwiches from restaurants, as per capita disposable income has risen. Over the five years to 2023, rising levels of per capita disposable income will encourage consumers to purchase more high-end cereal, which is marketed as a more healthful option at a higher price point...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
-3.6%
Forecast Growth 18-23
Profit
Employment
11,871
Businesses
86

Industry Threats & Opportunities

  • In response to lower input prices and revenue returning to growth this year, new companies have entered the industry
  • Major players often have long-term contracts with upstream suppliers as a means to protect against volatility
  • The growing economy will enable consumers to spend more on expensive, branded products
  • Industry Report - Industry Key Buyers Chapter

    The Cereal Production industry has a high level of market share concentration, with the top four players expected to account for over 80.0% of industry revenue in 2018. However, the US Census Bureau reports that industry enterprises that employ 500 or more workers make up almost 44.5% of total employment due to the heavy use of machinery and high operational efficiencies gained through high production levels.Industry concentration is expected to decrease over the next five years as industry revenue is anticipated to return to growth, which will encourage new companies to enter the industry. Nevertheless, major players, such as Post Holdings Inc., ar...purchase to read more.

    Additional Insights for the Cereal Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cereal Production Industry are

  • Ability to adapt to change
  • Ability to pass on cost increases
  • Product differentiation
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from grocery wholesaling in the Cereal Production industry impact industry performance..

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    What's in this report

    What is the Cereal Production Industry?

    Operators in this industry acquire raw materials such as corn, wheat, flour, sugar, malt extract and rice that are processed into ready-to-eat and hot cereals. They also purchase raw materials, such as plastic and paperboard containers, from other manufacturers for packaging purposes. The finished breakfast cereals are subsequently sold to grocery wholesalers, retailers and food service providers. Energy, cereal, granola and protein bars are not included in this industry.

    Industry Products
  • Ready-to-eat corn breakfast cereals
  • Ready-to-eat wheat breakfast cereals
  • Other ready-to-eat grain breakfast cereals
  • Ready-to-eat oat breakfast cereals
  • Ready-to-eat rice breakfast cereals
  • Hot cereal foods
  • Industry Activities
  • Manufacturing ready-to-eat cereal
  • Manufacturing oatmeal
  • Manufacturing other hot cereal foods
  • Manufacturing other breakfast cereal foods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Demand from grocery wholesaling
  • Per capita disposable income
  • Demand from fast food restaurants
  • World price of wheat
  • Price of coarse grains
  • Price of corn

  • Current Performance
  • Mixed demand
  • Normalizing profit
  • Pricing pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends
  • Industry structure
  • Table: Cereal Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cereal Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Food Service Contractors

  • Key Selling Industries
  • Baking Mix & Prepared Food Production
  • Canned Fruit & Vegetable Processing
  • Corn Farming
  • Corn, Wheat & Soybean Wholesaling
  • Flour Milling
  • Seasoning, Sauce and Condiment Production
  • Sugar Processing
  • Wheat, Barley & Sorghum Farming

  • Products & Services
  • Ready-to-eat corn breakfast cereals
  • Ready-to-eat oat breakfast cereals
  • Other ready-to-eat grain breakfast cereals
  • Ready-to-eat wheat breakfast cereals
  • Hot cereal foods
  • Ready-to-eat rice breakfast cereals
  • Chart: Cereal Production Industry Products and Services Segmentation

  • Demand Determinants
  • Household disposable income
  • Changing consumer lifestyles
  • Product innovation
  • Pricing and the presence of substitutes

  • Major Markets
  • Supermarkets
  • Food service providers and convenience stores
  • Grocery wholesalers
  • Exports
  • Chart: Major Market Segmentation for the Cereal Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Cereal Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cereal Production Industry

  • Industry Globalization
    Kellogg Company, General Mills Inc., PepsiCo Inc., Post Holdings Inc.,
  • Table: Kellogg Company - financial performance
  • Table: General Mills Inc. - financial performance
  • Table: PepsiCo Inc. - financial performance
  • Table: Post Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cereal Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cereal Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of coarse grains (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Private Label
  • Products sold as the house brand of a particular supermarket or retail chain, rather than the specific manufacturer.
  • Ready-To-Eat Cereal
  • Cereal or cereal products that are prepared in advance and are ready for consumption. Examples include cold cereals and minute-ready oatmeals.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Cereal Production can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cereal Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cereal Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cereal Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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