Cereal Production in the US - Industry Market Research Report

Oh snap: Industry growth will likely be limited by rising competition from breakfast substitutes

Changing consumer trends and economic growth have translated into pressured demand for the Cereal Production industry over the past five years. Low-carb diets have grown increasingly popular, limiting the number of consumers buying cereal, while other health-conscious consumers have only been interested in cereals made with nutritious ingredients. Growth has also been stressed as consumers leverage rising disposable incomes, indulging in premium breakfast foods. Consumer preferences have shifted toward convenient and portable foods as free time becomes more limited, also hampering demand for cereal. Still, cereal popularity has grown in recent years, particularly amid the pandemic. Overall, revenue has increased at a CAGR of 0.1% to $12.5 billion over the past five years, despite a 1.4% decrease in 2023. Operators in this industry acquire raw materials, such as corn, wheat, flour, sugar, malt extract and rice, that are processed into ready-to-eat and hot cereals. They also purchase other raw materials, such as plastic and paperboard containers, from other manufacturers for packaging purposes. The finished breakfast cereals are then sold to grocery wholesalers, retailers and food-service providers. Protein, cereal, granola and energy bars are not included in this industry. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.