Breakfast Cereal Manufacturing Industry Overview

Excerpt from Breakfast Cereal Manufacturing Report

Companies in this industry make ready-to-serve packaged cereal and cereals such as oatmeal and farina that must be cooked prior to eating. Major companies include Kellogg, General Mills, Post Foods, and Quaker (owned by PepsiCo).

Competitive Landscape

Demand is driven by demographics and health considerations, particularly the attitudes of busy families and working professionals toward the first meal of the day. The profitability of individual companies depends on managing raw material costs, operating efficiently, and maximizing retail shelf space. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by manufacturing cereals that emphasize organic or healthful ingredients. The industry is highly concentrated: the top four companies account for 80 percent of revenue.

Products, Operations & Technology

The industry's major product is ready-to-eat (RTE) cereal, which represents 90 percent of total industry revenue. The most popular cereals are made with corn flakes, wheat, oats, mixed grains, or puffed rice. Other products include instant hot cereal, rolled oats, farina, and infant cereal.