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 General Mills, Kellogg, Post Foods, Quaker (owned by PepsiCo), and Ralcorp (all based in the US), along with Weetabix (UK), The Jordans & Ryvita Company (UK) and Cereal Partners Worldwide, a joint venture between General Mills and Nestlé (Switzerland).
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 US industry is highly concentrated: the top four companies account for 80 percent of revenue.
The industry's major product is ready-to-eat (RTE) cereal. 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.Buy Now