Feeling their oats: Consumers have sought healthy industry products over the past five years

The Cereal, Pasta and Baking Mix Manufacturing industry has grown modestly over the past five years. However, downstream retail pressures and changing consumer preferences have posed challenges for industry manufacturers. Industry revenue is expected to grow at an annualised 0.7% over the five years through 2018-19, to $2.6 billion. This includes an expected 0.3% decline in the current year.Supermarket chains are the primary sales channel for industry products. The ongoing competition between major supermarkets Coles and Woolworths has caused aggressive price competition, which has negatively affected industry revenue. The rising popularity of private-label products, which compete with the industry's branded products, has exacerbated this downward price pressure...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Supermarket price competition and private-label products have heavily affected industry operators
  • Brands have increasingly targeted time-poor consumers with items that can be eaten on the go
  • Growing profit margins are forecast to deter players from exiting the industry over the period
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits moderate concentration. The four largest players are expected to account for 48.6% of industry revenue in 2018-19. Industry concentration has fallen over the past five years, largely due to Kellogg's declining revenue over the period. Continued product innovation, strong brand loyalty and aggressive marketing have helped boost some major players' market shares.Concentration varies among product segments. The cereals segment tends to be the most concentrated, with Kellogg, Sanitarium and Nestle accounting for the majority of market share. As this segment commands higher brand and customer loyalty, the major players spend significant resources on marketing and positioning to compete for market share. The...purchase to read more.

    Additional Insights for the Cereal, Pasta and Baking Mix Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Cereal, Pasta and Baking Mix Manufacturing are:

  • Marketing of differentiated products
  • Supply contracts in place for key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Domestic price of wheat in the Cereal, Pasta and Baking Mix Manufacturing industry impact industry performance..

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    What's in this report

    What is the Cereal, Pasta and Baking Mix Manufacturing Industry?

    Industry operators manufacture prepared cereal foods (including oatmeal), fresh and dried pasta, and baking mixes.

    Industry Products
  • Breakfast products
  • Pasta and noodle products
  • Baking mixes
  • Industry Activities
  • Baking mix production
  • Baking powder production
  • Cake mix production
  • Cereal bar production
  • Breakfast cereal production
  • Oats
  • Pasta production
  • Pastry dough and mix production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Domestic price of wheat
  • Domestic price of coarse grains
  • Demand from cafes, restaurants and takeaway food services
  • Health consciousness

  • Current Performance
  • Retail pressures
  • Industry structure
  • Consumer trends
  • Input prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Product mix
  • Globalisation
  • Inputs and profitability
  • Table: Cereal, Pasta and Baking Mix Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cereal, Pasta and Baking Mix Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread Production
  • Cake and Pastry Manufacturing
  • Tea, Coffee and Other Food Manufacturing
  • General Line Grocery Wholesaling
  • Catering Services
  • Supermarkets and Grocery Stores
  • Restaurants
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Sugar Manufacturing

  • Products & Services
  • Breakfast products
  • Pasta and noodle products
  • Baking mixes
  • Chart: Cereal, Pasta and Baking Mix Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Price and income
  • Health and dietary trends

  • Major Markets
  • Supermarkets
  • Grocery wholesalers
  • Food-service operators
  • Export markets
  • Chart: Major Market Segmentation for the Cereal, Pasta and Baking Mix Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation, rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Cereal, Pasta and Baking Mix Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cereal, Pasta and Baking Mix Manufacturing Industry

  • Industry Globalization
    Australian Health & Nutrition Association Limited, Kellogg Australia Holdings Pty Ltd, Clearlight Investments Pty Limited, General Mills Holding (Australia) Pty Ltd, Nestle Australia Ltd,
  • Table: Australian Health & Nutrition Association Limited - financial performance
  • Table: Kellogg Australia Holdings Pty Ltd - financial performance
  • Table: Clearlight Investments Pty Limited - financial performance
  • Table: General Mills Holding (Australia) Pty Ltd - financial performance
  • Table: Nestle Australia Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cereal, Pasta and Baking Mix Manufacturing 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 Cereal, Pasta and Baking Mix Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Private-Label Product
  • A product purchased from a contracted manufacturer by a retailer or supplier, and sold under the brand name of the retailer or supplier, not the manufacturer.
  • Research And Development (R&D)
  • The use of resources to create new knowledge and develop new and improved products or more economic methods of production.
  • Wholesale Bypass
  • A procurement process within retail and manufacturing industries, whereby retailers buy products directly from manufacturers, without dealing with a wholesaler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cereal, Pasta and Baking Mix Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Cereal, Pasta and Baking Mix Manufacturing:
    • 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 of 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 Cereal, Pasta and Baking Mix Manufacturing 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 Cereal, Pasta and Baking Mix Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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