A slow rise: The industry has returned to growth after declines caused by low wheat prices

Grain milling is an advanced, modern industry with highly specialised, automated production processes. Nonetheless, the industry depends on a number of unpredictable factors that affect upstream conditions, such as climate, pests and wheat prices. Wheat, the industry's primary input, is one of the most important agricultural commodities in the world and is used in a number of staple foods. Though they account for a smaller share of the industry, maize and oats also have an influence on the industry and are subject to the same volatility, making the industry inherently risky and moderately volatile. Over the five years through 2018-19, industry revenue is forecast to fall at a compound annual rate of 2.2%, to reach £2.2 billion...read more.

Industry Statistics & Market Size
Revenue
£2.2bn
Annual Growth 14-19
-2.2%
Forecast Growth 19-24
Profit
Employment
4,198
Businesses
82

Industry Threats & Opportunities

  • Rising wheat prices are expected to underpin revenue growth over the next five years
  • Rising input costs are expected to put pressure on profit margins in the current year
  • The premium and indulgent segment is expected to offer some value-added opportunities
  • Industry Report - Starting a New Business Chapter

    The barriers to entering the Grain Milling industry are estimated to be moderate, although the level of initial capital investment required is significant. The biggest threat facing potential new entrants is the well-entrenched position of the industry's major companies. These companies enjoy high brand and customer loyalty and have considerable resources to invest in advertising and promotions to protect and expand their market share. They also have favourable contracts with key buyers such as supermarkets and industrial bakeries, which may be difficult for new entrants to secure. The...purchase to read more.

    Additional Insights for the Grain Milling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Grain Milling Industry are

  • Supply contracts in place for key inputs
  • Economies of scale
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as World price of wheat and Demand from bread and bakery goods production in the Grain Milling industry impact industry performance..

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    What's in this report

    What is the Grain Milling Industry?

    This industry includes the production of flour, groats, meal or pellets of wheat, rye, oats, maize (corn) or other cereal grains. It also includes the manufacture of flour mixes and prepared dough. The industry excludes starch manufacturing and the production of breakfast cereals.

    Industry Products
  • Wheat flour
  • Dough and mixes
  • Groats and meals
  • Industry Activities
  • Grain flour
  • Groats, meal and grain pellet
  • Manufacturing dough from cereal grains
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of wheat
  • Demand from bread and bakery goods production
  • Real household disposable income
  • Demand from biscuit production
  • Real effective exchange rate

  • Current Performance
  • Upstream volatility
  • Profit pressure
  • Flour power
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Consumer tastes
  • Regulatory changes
  • Table: Grain Milling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Grain Milling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Breakfast Cereals & Cereal-Based Foods Production
  • Bread & Bakery Goods Production
  • Biscuit Production
  • Supermarkets

  • Key Selling Industries
  • Cereals, Leguminous Crops & Oilseed Growing
  • Grain, Seed, Animal Feed & Unmanufactured Tobacco Wholesaling

  • Products & Services
  • Wheat flour
  • Dough and mixes
  • Other
  • Groats and meals
  • Chart: Grain Milling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food manufacturers
  • Food-service enterprises
  • Grocery wholesalers, grocery stores and supermarkets
  • Animal feed processors
  • Chart: Major Market Segmentation for the Grain Milling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Grain Milling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grain Milling Industry

  • Industry Globalization
    Whitworth Bros Limited, ADM Milling Ltd,
  • Table: Whitworth Bros Limited - financial performance
  • Table: ADM Milling Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Grain Milling 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 Grain Milling 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
    Bran
  • The brown shell of the wheat grain. It is rich in vitamins, minerals and protein, but excluded from white wheat flour.
  • Endosperm
  • The tissue inside the seeds of most flowering plants around the time of fertilisation. White wheat flour is produced entirely from the wheat endosperm.
  • Germ
  • The part of the wheat grain responsible for reproduction. It is also rich in nutrients.
  • Gluten
  • A protein that is joined with starch and found in the endosperm of some grass-related grains, notably wheat, rye and barley.
  • What Our Customers Say

    Why buy this report?

    The Grain Milling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Grain Milling:
    • 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 Grain Milling 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 Grain Milling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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