Armed and bready: Import competition from an appreciating loonie will threaten revenue

The Flour Milling industry in Canada has contracted slightly over the five years to 2019 amid downward pressure on prices of products. Malt manufacturing has been the primary driver of the industry's growth given that Canada is the second-largest exporter of malt in the world. Overall, the industry is expected to decline during the period. Over the five years to 2024, the Flour Milling industry is forecast to grow as the price of flour improves and malt manufacturing continue growing. Exports are expected to continue growing at a similar pace, while imports are anticipated to grow significantly slower during the period as domestic demand becomes increasingly satisfied by domestic more.

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

Industry Threats & Opportunities

  • The industry has been affected by an oversupply of flour driven by higher domestic production and increasing import penetration
  • As technology improves, larger players usually adopt it due to their vast financial resources
  • As consumers opt to eat healthier, demand for industry products will likely also increase
  • Industry Report - Industry Products Chapter

    Flour productsThe flour product segment is made up of wheat flour, corn flour, flour mixes and flour by-products such as mill feed. Wheat flour accounts for the bulk of this segment since it is the most demanded and useful flour product in the market. Over the past five years, as a growing number of consumers became health conscious, wheat flour consumption declined due to its high carbohydrate content. Producers responded by introducing whole wheat and other healthy products such as gluten-free flour, which is keeping the wheat flour segment from shrinking significantly. An estimated 64.1% of industry volume produced is made up of flour products designated for human consumption in 2019, while an additional 9.0% of industry volume produced is made up of mill feed...purchase to read more.

    Additional Insights for the Flour Milling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Flour Milling Industry are

  • Supply contracts in place for key inputs
  • Marketing of differentiated products
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Demand from grocery stores and Canadian effective exchange rate index in the Flour Milling industry impact industry performance..

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    What's in this report

    What is the Flour Milling Industry?

    This industry participates in the following activities: milling grains and vegetables into flour; cleaning, polishing and milling rice; and producing malt from a variety of cereal grains. Industry operators purchase grain inputs such as wheat, corn, barley and rice from wholesalers or directly from growers. They then process them into flour, gluten, starch and malt, and sell these products to grocery wholesalers or other food-related industries.

    Industry Products
  • Flour products for human consumption
  • Millfeed
  • Rice
  • Malt
  • Industry Activities
  • Producing flour from wheat
  • Producing flour from corn
  • Producing flour mixes from a variety of grain crops
  • Milling rough rice
  • Producing malt from a variety of cereal grains
  • 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 grocery stores
  • Canadian effective exchange rate index
  • Consumer price index for food
  • Per capita disposable income

  • Current Performance
  • Shifting consumer preference
  • Profit trends and structure
  • Appreciation of Canadian flour abroad
  • Chart: Revenue Growth

  • Industry Outlook
  • Per capita disposable income driving demand growth
  • Profit stability
  • Product innovation
  • International trade
  • Table: Flour Milling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Flour Milling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread Production in Canada
  • Cookie, Cracker & Pasta Production in Canada
  • Breweries in Canada
  • Distilleries in Canada
  • Supermarkets & Grocery Stores in Canada
  • Single Location Full-Service Restaurants in Canada
  • Food Service Contractors in Canada

  • Key Selling Industries
  • Corn Farming in Canada
  • Soybean Farming in Canada
  • Vegetable Farming in Canada

  • Products & Services
  • Flour products for human consumption
  • Malt
  • Millfeed
  • Rice
  • Chart: Flour Milling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Food manufacturers and food service
  • Other
  • Grocery wholesalers and stores
  • Chart: Major Market Segmentation for the Flour Milling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Flour Milling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Flour Milling Industry

  • Industry Globalization
    Archer Daniels Midland Company, Parrish & Heimbecker Ltd., Ardent Mills LLC,
  • Table: Archer Daniels Midland Company - financial performance
  • Table: Parrish & Heimbecker Ltd. - financial performance
  • Table: Ardent Mills LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Flour Milling 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 Flour Milling 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)
  • World price of wheat (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Durum Wheat
  • A type of wheat that has dark-coloured kernels and is mostly used for bread and pasta manufacturing.
  • Malt
  • A grain product mainly used for brewing and distilling that mostly comes from barley.
  • Rice Milling
  • A process of removing the husk, bran layer and germ of rice.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • Wholesale Bypass
  • A popular trend in retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Flour Milling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
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    This report on Flour Milling:
    • 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 Flour Milling 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 Flour Milling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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