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Cereal Production in Canada: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Cereal Production in Canada Market Research Report | NAICS 31123CA | Feb 2017

Still hungry: Rising competition from breakfast substitutes will limit industry revenue growth

IBISWorld’s Cereal Production 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.

Report Snapshot
Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-0.8%
Annual Growth 17-22
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Profit
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Employment
3,453
Businesses
22
Industry Analysis & Industry Trends

Conflicting trends over the past five years hampered the Cereal Production industry. Wary of the economy, many consumers turned to cereal as an inexpensive breakfast option. However, demand has waned as consumers shifted to pricier breakfasts as disposable incomes recovered. Moreover, as people returned to work they had less time to prepare breakfast. Instead, Canadians opted to buy food at cafes or coffee shops, decreasing demand for cereal. Over the next five years, recovering disposable income will encourage consumers to purchase brand-name, high-end cereals, which is expected to improve industry returns. In addition, more Canadians will purchase organic and whole grain cereal options due to growing health trends... purchase to read more

Industry Report - Industry Investment Chapter

Cereal production requires substantial capital investment, which increases capital intensity. Modern manufacturing plants require high capital expenditure on sophisticated technology and equipment that aim to increase productivity without the need for additional labour. However, the level of capital intensity varies considerably with the size of the manufacturer. Small- to medium-size facilities have a low capital-to-labour ratio because they lack the resources to invest in expensive technology and equipment, and they have to employ additional labour to increase production volumes. Overall, the Cereal Production industry exhibits relatively high capital intensity.

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Industry ProductsRelated ReportsTable of Contents

What is the Cereal Production Industry?

This industry acquires raw materials, such as corn, wheat, flour, sugar, malt extract, rice and salt from various sources, and processes these ingredients into ready-to-eat cereal, granola cereal (except bars and clusters) and hot cereal. It also purchases raw materials such as plastic and paperboard containers from other manufacturers for packaging purposes. The finished breakfast cereals are subsequently sold to grocery wholesalers, retailers and food service providers.

Industry Products
Ready-to-eat corn breakfast foodsReady-to-eat wheat breakfast foodsOther ready-to-eat grain breakfast foodsHot cereal
 
Industry Activities
Corn breakfast foodsWheat breakfast cerealOatmeal (i.e. cereal breakfast food)Grain breakfast cerealMix grain breakfastManufacturing granola breakfast cereal (except bars and clusters)Manufacturing ready-to-serve breakfast and instant hot cereal foods


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