Industry Analysis & Industry Trends
The Cereal Production industry has struggled over the past five years, with economic conditions largely guiding demand fluctuations. Wary of the economy, low consumer confidence drove demand for breakfast cereals, however, economic recovery in subsequent years has limited demand. Furthermore, as the economy began to recover, customers quickly turned away from cereals, rushing to satisfy cravings for alternative breakfast items. In the next five years, the industry will continue to face challenges due to fluctuating demand trends. Nonetheless, appetite for cereal is here to stay, with revenue performance forecast to improve. Canadians will gain disposable income, which will result in mixed demand for cereal products... purchase to read more
Industry Report - Starting a New Business Chapter
The most significant barrier to entry is the capital investment required to start a new firm. Cereal production is highly capital intensive, so operations rely heavily on machinery, equipment, as well as in-depth knowledge of processing efficiencies. Because the level of capital intensity is only increasing, firms that are unable to afford the capital investments will be unable to operate.
Another significant threat to potential entrants is the well-entrenched position of the incumbent firms. These companies experience high brand and customer loyalty and have considerable resources to invest in advertising and promotions to protect and grow their market share... purchase to read more