Budding growth: The industry is expected to expand in the current year, following three years of decline

Grain milling is an advanced, modern industry with highly specialised, automated production processes. Nonetheless, it is also in a somewhat precarious position. 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 reasonably volatile.Recently, the industry has been affected by fluctuating wheat harvests and, in the early part of the period, a poor economic environment...read more.

Industry Statistics & Market Size
Revenue
£2bn
Annual Growth 13-18
-2.1%
Forecast Growth 18-23
Profit
Employment
4,288
Businesses
79

Industry Threats & Opportunities

  • The industry has been negatively affected by a number of unpredictable external factors
  • Industry operators have had to adapt to changing consumer tastes by shifting production to different types of flour
  • Automation is expected to gather pace over the next five years as the larger players continue to make investments
  • Industry Report - Industry Key Buyers Chapter

    The Grain Milling industry is estimated to have a relatively low level of market share concentration, with the top four players expected to generate 31.6% of industry revenue in 2017-18. Concentration is estimated to have fallen slightly over the past five years as a result of increasing price competition. This has also encouraged consolidation in the industry. Although many of the biggest players in the industry used to be multinational food giants, trading difficulties have forced these companies to divest their milling businesses and, over the past five years, companies in the industry have become more specialised. Premier Foods, for example sold a 51% stake in Hovis Ltd to the Gores Group in April 2014. Sub...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
  • Demand conditions
  • Flour power
  • In the mill
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer tastes
  • Investment
  • Regulation and trade
  • 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 competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grain Milling Industry

  • Industry Globalization
    Whitworth Bros Limited, ADM Milling Ltd, Rank Hovis Milling Ltd,
  • Table: Whitworth Bros Limited - financial performance
  • Table: ADM Milling Ltd - financial performance
  • Table: Rank Hovis 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • 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?

    IBISWorld’s Grain Milling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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