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, Quaker (owned by PepsiCo), and TreeHouse Foods, 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 $35 billion in annual revenue, according to Transparency Market Research. The US, Canada, the UK, and Australia are the largest breakfast cereal markets, according to Cereal Partners Worldwide. The industry is targeting growth in emerging markets such as China, India, and Brazil.
The US breakfast cereal manufacturing industry includes about 40 companies with combined annual revenue of about $10 billion. This industry does not include companies that primarily manufacture granola bars, breakfast bars, or packaged cereal snacks.
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 marketing. Small operations can compete effectively by manufacturing cereals that emphasize organic or healthful ingredients. The US industry is highly concentrated: the top four companies account for about 80% of revenue.
Import and export markets for cereal are limited....