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Cereal Production in the US - Industry Market Research Report

  • May 2017
  • 39 pages
  • Ibisworld
Report ID: 198654

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No grains: Increasing competition and pricing pressures will impede industry revenue growth

Cereal Production in the US

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. Higher disposable incomes, coupled with the growing number of health-conscious consumers, will push companies to introduce healthy, price-premium products to spur demand. However, more spending money will also allow consumers to dine out more, consequently hampering revenue growth.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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