Cereal Production in Canada
Conflicting trends over the past five years hampered the Cereal Production industry. Wary of the economy, many consumers turned to cereal as an inexpensive breakfast option. However, demand has waned as consumers shifted to pricier breakfasts as disposable incomes recovered. Moreover, as people returned to work they had less time to prepare breakfast. Instead, Canadians opted to buy food at cafes or coffee shops, decreasing demand for cereal. Over the next five years, recovering disposable income will encourage consumers to purchase brand-name, high-end cereals, which is expected to improve industry returns. In addition, more Canadians will purchase organic and whole grain cereal options due to growing health trends.
This industry acquires raw materials, such as corn, wheat, flour, sugar, malt extract, rice and salt from various sources, and processes these ingredients into ready-to-eat cereal, granola cereal (except bars and clusters) and hot cereal. It also purchases 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.
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.