Milking it: Operators expand their product ranges to appeal to health-conscious consumers

Operators in the Breakfast Cereals and Cereal-Based Foods Production industry manufacture breakfast cereal foods and mill rice and vegetables. Changing consumer tastes have weighed on the performance of the industry in recent years. Industry revenue is expected to fall at a compound annual rate of 2.2% over the five years through 2018-19, including a forecast 1.1% decrease in the current year, to £2.1 billion. Health concerns have played a much larger role in consumers' food choices in recent years and media coverage of the poor nutritional content of many processed cereals has put customers off. Low sugar alternatives, such as porridge, muesli and granola, have grown in popularity, as they are perceived as natural, healthy alternatives to traditional cereals...read more.

Industry Statistics & Market Size
Revenue
£2.1bn
Annual Growth 14-19
-2.2%
Forecast Growth 19-24
Profit
Employment
7,645
Businesses
58

Industry Threats & Opportunities

  • Volatile wheat prices have caused revenue and profit to fluctuate over the past five years
  • Consumer desire for convenience has stimulated recent demand for on-the-go pots and cereal bars
  • Restrictions to trade with the European Union would likely cause industry revenue to decline
  • Industry Report - Industry Products Chapter

    The products of the Breakfast Cereals and Cereal-Based Foods Production industry can be broadly classified into breakfast cereals and rice products. Breakfast cereals are commonly made from grains like corn, wheat, oats, rice or barley, which can be flaked, rolled, crushed, swollen, roasted, puffed or shredded. Most cereals contain some combination of added salt, yeast, sweeteners, flavouring agents, colouring agents, vitamins, minerals and preservatives. Although the United Kingdom is not suited to growing rice, a considerable amount of unprocessed paddy rice is imported for milling here. Unprocessed rice attracts lower EU tariffs than fully milled white rice, so firms with UK rice milling operations may be able to offer their customers a cheaper option...purchase to read more.

    Additional Insights for the Breakfast Cereals & Cereal-Based Foods Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Breakfast Cereals & Cereal-Based Foods Production Industry are

  • Ensuring pricing policy is appropriate
  • Effective quality control
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Real household disposable income in the Breakfast Cereals & Cereal-Based Foods Production industry impact industry performance..

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    What's in this report

    What is the Breakfast Cereals & Cereal-Based Foods Production Industry?

    The Breakfast Cereals and Cereal-Based Foods Production industry includes companies that manufacture cereal breakfast foods and mill rice and vegetables. It excludes the production of flour and meal from potatoes.

    Industry Products
  • Hot cereals
  • Cold cereals
  • Cereal bars and snacks
  • Rice products
  • Muesli and granola
  • Other products
  • Industry Activities
  • Producing cereal breakfast foods
  • Producing husked, milled, polished, glazed, parboiled or converted rice
  • Producing rice flour
  • Producing flour or meal from dried leguminous vegetables, roots, tubers or edible nuts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Real household disposable income
  • Average weekly hours of work
  • Health consciousness
  • World price of wheat

  • Current Performance
  • Health concerns
  • Consumer demands
  • Pricing pressures
  • Chart: Revenue Growth

  • Industry Outlook
  • An uncertain departure
  • Healthy innovation
  • Table: Breakfast Cereals & Cereal-Based Foods Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Breakfast Cereals & Cereal-Based Foods Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Hotels

  • Key Selling Industries
  • Cardboard Packaging & Paper Bag Manufacturing
  • Cereals, Leguminous Crops & Oilseed Growing
  • Grain Milling

  • Products & Services
  • Cold cereals
  • Cereal bars and snacks
  • Rice products
  • Hot cereals
  • Muesli and granola
  • Other products
  • Chart: Breakfast Cereals & Cereal-Based Foods Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Exports
  • Grocery wholesalers
  • Food-service industries
  • Chart: Major Market Segmentation for the Breakfast Cereals & Cereal-Based Foods Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Breakfast Cereals & Cereal-Based Foods Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Breakfast Cereals & Cereal-Based Foods Production Industry

  • Industry Globalization
    Weetabix Limited, Cereal Partners UK, ABF Grain Products Ltd, PepsiCo Inc,
  • Table: Weetabix Limited - financial performance
  • Table: Cereal Partners UK - financial performance
  • Table: ABF Grain Products Ltd - financial performance
  • Table: PepsiCo Inc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Breakfast Cereals & Cereal-Based Foods Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Breakfast Cereals & Cereal-Based Foods Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Milling
  • The process of refining rice by removing the husk and bran layers from paddy rice to create white rice.
  • Muesli
  • A mixture of rolled oats and dried fruits.
  • Own-Label
  • Describes a product that is sold under a supermarket's brand but made by another company.
  • Ready-To-Eat Cereal
  • Cereal that can be consumed without being heated or otherwise prepared. Also referred to as cold cereal.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Breakfast Cereals & Cereal-Based Foods Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    This report on Breakfast Cereals & Cereal-Based Foods Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Breakfast Cereals & Cereal-Based Foods Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Breakfast Cereals & Cereal-Based Foods Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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