Industry Analysis & Industry Trends
Innovative product lines, volatile commodity prices and a saturated market: These characteristics are the essence of the Cereal, Pasta and Baking Mix Manufacturing industry. While the industry has shown some positive signs over the past five years, volatile input prices, turbulent economic conditions and changing consumer trends have posed challenges. However, the industry remained resilient during the economic duress and tended to outperform the economy during the financial crisis, despite waning consumer spending. In the five years through 2012-13, industry revenue is estimated to increase by an annualised 0.4% to total $2.49 billion. This includes a forecast 1.5% increase in revenue in 2012-13... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry in the industry are relatively low, as the absolute cost of entry is not prohibitive. Barriers to entry vary between product segments. Cereal production is more capital intensive and thus requires higher levels of investment to commence operations. The biggest threat facing potential new entrants to this segment is the extremely well entrenched position of the industry's major players. These companies enjoy high brand and customer loyalty and have considerable resources to invest in advertising and promotions to protect and grow their market share. Further, the major players enjoy favourable contracts with key suppliers such as grocery stores and supermarkets that may be difficult for new entrants to secure... purchase to read more