Cereal Production in the US
Changing consumer trends and economic growth have translated to a contraction in demand for cereal over the five years to 2019. Low-carb diets have grown increasingly popular, limiting the number of consumers buying cereal. Moreover, revenue for the Cereal Production industry has declined as consumers have leveraged their rising disposable incomes to indulge in premium breakfast foods, such as breakfast sandwiches from restaurants. Consumer preferences are increasingly shifting toward fast and portable foods as unemployment falls, hampering demand for industry products. Over the five years to 2024, rising levels of per capita disposable income will likely encourage consumers to purchase more high-end cereals, which are marketed as a healthier option at a higher price point. However, growth will likely be limited by rising competition from substitutes, such as breakfast sandwiches from fast food restaurants, due to consumers' tighter schedules.
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 other raw materials like 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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