Breakfast Cereal Manufacturing Industry Profile

Companies in this industry make ready-to-serve packaged cereal and cereals such as oatmeal and farina that must be cooked prior to eating. Major companies include General Mills, Kellogg, Post Foods, Quaker (owned by PepsiCo), and Ralcorp (all based in the US), along with Weetabix (UK), The Jordans & Ryvita Company (UK) and Cereal Partners Worldwide, a joint venture between General Mills and Nestlé (Switzerland).

Worldwide, the breakfast cereal manufacturing industry generates about $30 billion in revenue, according to Euromonitor International. The US, Canada, the UK, and Australia account for more than half of global cereal consumption, according to Cereal Partners Worldwide. The strongest growth for the industry is expected to come from markets such as China, India, Russia, and Turkey.

The US breakfast cereal manufacturing industry includes about 35 companies with combined annual revenue of about $10 billion and is expected to grow at a slow rate over the next two years. Key growth challenges include competition from breakfast alternatives and volatile commodity prices.

This industry does not include the manufacturing of granola bars, breakfast bars, or packaged cereal snacks.

COMPETITIVE LANDSCAPE

Demand is driven by demographics and health considerations, particularly the attitudes of busy families and working professionals toward the first meal of the day. The profitability of individual companies depends on managing raw material costs, operating efficiently, and maximizing retail shelf space. Large companies have advantages in purchasing, distribution, and ...