Flour power: With changing diet preferences and volatile input prices, industry revenue will fall

Despite rising levels of per capita disposable income, the Flour Milling industry has declined over the five years to 2018 due to growing consumer preference for flour-alternatives and rising import penetration. The prices of many input commodities used by industry operators have decreased over the five years 2018, including the world price of wheat. This constrained the prices industry operators were able to command from downstream markets. Moreover, consumer preferences shifted while import penetration increased, further hindering revenue growth as consumers opted either for less-expensive foreign products or new flour-alternatives such as almond flour...purchase to read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 13-18
-4.6%
Forecast Growth 18-23
Profit
Employment
18,311
Businesses
617

Industry Threats & Opportunities

  • In recent years, flour milling operators have responded to falling industry revenue by appealing to a niche market
  • Many operators have undertaken joint ventures or acquired competitors
  • Less volatile raw material prices will enable industry operators to more effectively anticipate costs
  • Industry Report - Industry Products Chapter

    Operators in the Flour Milling industry in the US provide the specialized service of processing and milling raw crops and grains into usable flour, meal and other ingredients used in food manufacturing. As a result, industry products are fairly uniform, ranging from standard flour mixes to cereal grain germ and rice meal.Wheat productsThe Flour Milling and Malt Manufacturing industry offers a variety of wheat products derived from the grain such as flour, meal, bran sharps and other products such as groats. While some operators have expanded their product lines by producing flour mixes and doughs in-house, most flour mills specialize in the production of basic, unmixed flours. Collectively, these wheat products are estimated to account for 36.9% o...purchase to read more.

    Additional Insights for the Flour Milling Industry

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

  • Supply contracts in place for key inputs
  • Marketing of differentiated products
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita wheat flour consumption in the Flour Milling industry impact industry performance..

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    What's in this report

    What is the Flour Milling Industry?

    Companies in this industry participate in the following activities: milling grains and vegetables into flour; cleaning, polishing and milling rice; and producing malt from a variety of cereal grains. Industry operators purchase grain inputs, such as wheat, corn, barley and rice, from wholesalers or directly from growers. Operators then convert these inputs into flour, gluten, cereal groats and malt and sell such products to grocery wholesalers or other food-related industries.

    Industry Products
  • Wheat products
  • Corn products
  • Mustard products
  • Vegetable products
  • Other / cereal products
  • Rice products
  • Malt products
  • Industry Activities
  • Producing flour from wheat
  • Producing flour from corn
  • Producing flour mixes from a variety of grain crops
  • Milling rough rice
  • Producing malt from a variety of cereal grains
  • Producing meal and animal feed
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita wheat flour consumption
  • World price of wheat
  • Trade-weighted index
  • Import penetration into the manufacturing sector

  • Current Performance
  • Consumer trends fail to boost revenue
  • Joint ventures
  • Increased global competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Crop prices and income levels
  • Consolidation spurs growth
  • Global trade
  • Table: Flour Milling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Flour Milling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread Production
  • Cookie, Cracker & Pasta Production
  • Tortilla Production
  • Breweries
  • Distilleries
  • Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Food Service Contractors

  • Key Selling Industries
  • Corn Farming
  • Corn, Wheat & Soybean Wholesaling
  • Rice Farming
  • Wheat, Barley & Sorghum Farming

  • Products & Services
  • Wheat products
  • Rice products
  • Vegetable products
  • Corn products
  • Mustard products
  • Malt products
  • Other / cereal products
  • Chart: Flour Milling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Grocery Wholesalers
  • Bread manufacturers
  • Prepared and frozen food manufacturers
  • Animal food manufacturers
  • Other
  • Exports
  • Cookie, cracker and pasta manufacturers
  • Chart: Major Market Segmentation for the Flour Milling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Flour Milling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Flour Milling Industry

  • Industry Globalization
    Ardent Mills LLC, Archer Daniels Midland Company,
  • Table: Ardent Mills LLC - financial performance
  • Table: Archer Daniels Midland Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Flour Milling 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 Flour Milling 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)
  • World price of wheat (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Durum Wheat
  • A type of wheat that has dark colored kernels and is mostly used for bread and pasta manufacturing.
  • Malt
  • A grain product mainly used for brewing and distilling that mostly comes from barley.
  • Rice Milling
  • A process of removing the husk, bran layer and germ of rice.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • Wholesale Bypass
  • A popular trend in retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

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    This report on Flour Milling:
    • 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 Flour Milling 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

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