Cereal Production in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 31123Revenue
$11.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
11,274
Businesses
75
Wages
$XXX.Xm
Cereal Production in the US industry analysis
Changing consumer trends and economic growth have translated into pressured demand for cereal producers. Low-carb diets have grown increasingly popular, limiting the number of consumers buying cereal, while other health-conscious consumers are only interested in cereals made with nutritious ingredients. Companies have also struggled as consumers leverage rebounding disposable incomes, indulging in premium breakfast foods. Consumer preferences have shifted toward convenient and portable foods as free time becomes more limited, hampering cereal demand. Still, cereal popularity has remained relatively steady in recent years. Overall, revenue has inched downward at a CAGR of 1.2% to $11.8 billion through the current period, including a 0.8% drop in 2024 alone.
Trends and Insights
- Cereal producers are adapting to shifting consumer preferences. Demand for healthier, convenient options is rising as consumers seek products that complement an active lifestyle. Manufacturers now focus on nutrition and portability to meet these needs.
- Consumers are demanding healthier alternatives amid swelling health consciousness. To cater to these changing consumer preferences, producers have introduced various new, nutrient-rich cereal options to the market.
- Many producers set up near key inputs to reduce transportation costs. This strategy boosts efficiency and helps maintain profit despite high operating expenses. Being closer to resources can significantly enhance a company's overall cost-effectiveness.
- When prices rise significantly, consumers quickly switch to cheaper generic brands. Larger, high-quality brands tend to retain more loyalty. This behavior highlights the elasticity of consumer preferences in response to price fluctuations.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.3 % over the past five years, to reach an estimated $11.7bn in 2024.
Trends and Insights
Health trends drive product innovation
- As more US consumers became health-conscious, demand for organic, high-fiber and whole-grain cereals has swelled. Manufacturers have responded with new, healthier product lines. For example, General Mills introduced multi-Grain Cheerios while Kellogg's has updated its portfolio to include high-fiber Fruit Loops and Apple Jacks.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Premium cereals will expand in popularity
- As the economy recovers, health-conscious consumers who are willing to invest more in their well-being will see a boost in disposable income. This allows them to spend more on high-end cereals, which are pricier because of their superior ingredients. These cereals typically contain added vitamins and offer greater nutritional value, integral to a health-conscious individual's diet, justifying the higher price.
Biggest companies in the Cereal Production in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Kellogg Company | 3,133.4 | 397.1 | 12.7 | |
Post Holdings, Inc. | 2,374.5 | 202.2 | 8.5 | |
General Mills, Inc. | 2,229.6 | 385.9 | 17.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Ready-to-eat corn breakfast cereals, Ready-to-eat wheat breakfast cereals and Other ready-to-eat grain breakfast cereals. Ready-to-eat corn breakfast cereals is the largest segment of the Cereal Production in the US.
Trends and Insights
Health trends boost demand for whole grain, high-fiber cereals
- Adding healthy ingredients, like whole grains, often raises the marketability of cereals. Oats, especially are sought after as part of a high-fiber, gluten-free and whole-grain diet.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Baking Mix & Prepared Food Production in the US
- Cookie, Cracker & Pasta Production in the US
- Cookie & Wafer Manufacturing in the US
- Frozen Cake & Pastry Manufacturing in the US
Complementors
- Corn Farming in the US
- Wheat, Barley & Sorghum Farming in the US
- Flour Milling in the US
- Sugar Processing in the US
- Canned Fruit & Vegetable Processing in the US
- Grocery Wholesaling in the US
- Supermarkets & Grocery Stores in the US
International industries
- Cereal Production in Canada
- Cereal, Pasta and Baking Mix Manufacturing in Australia
- Cereal, Pasta and Baking Mix Manufacturing in New Zealand
- Breakfast Cereals & Cereal-Based Foods Production in the UK
- Breakfast Cereals & Cereal-Based Foods Production in Ireland
Table of Contents
About this industry
Industry definition
Cereal producers acquire raw materials like corn, wheat, flour, sugar, malt extract and rice and process them into ready-to-eat and hot cereals. They also purchase raw materials from other manufacturers, like plastic and paperboard containers, for packaging purposes. The finished breakfast cereals are then sold to grocery wholesalers, retailers and food-service providers.
What's included in this industry?
Manufacturing ready-to-eat cerealManufacturing oatmealManufacturing other hot cereal foodsManufacturing other breakfast cereal foodsCompanies
Kellogg CompanyPost Holdings, Inc.General Mills, Inc.Purchase this report to view all 4 major companies in this industry.
Related Terms
READY-TO-EAT CEREALWHOLESALE BYPASSPRIVATE LABELIndustry Code
NAICS 31123 - Cereal Production in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Cereal producers are adapting to shifting consumer preferences. Demand for healthier, convenient options is rising as consumers seek products that complement an active lifest...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consumers are demanding healthier alternatives amid swelling health consciousness. To cater to these changing consumer preferences, producers have introduced various new, nut...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Many producers set up near key inputs to reduce transportation costs. This strategy boosts efficiency and helps maintain profit despite high operating expenses. Being closer ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
When prices rise significantly, consumers quickly switch to cheaper generic brands. Larger, high-quality brands tend to retain more loyalty. This behavior highlights the elas...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The top four cereal producers dominate the market. Small producers cannot compete with the sheer breadth of products and capital available to major cereal producers.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Kellogg Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Post Holdings, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of General Mills, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Kellogg Company, and factors influencing its performance in the industry
- Description and key data for Post Holdings, Inc., and factors influencing its performance in the industry
- Description and key data for General Mills, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Producers must follow stringent FDA guidelines and regulations regarding cereal content and labeling. Recalls and false claims are highly detrimental to a brand’s reputation.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Swelling input prices have put pressure on profit. Contracts are essential to keep production costs low by guaranteeing a set price for materials over a certain period.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cereal Production in the US industry in United States in 2024?
The market size of the Cereal Production in the US industry in United States is $11.7bn in 2024.
How many businesses are there in the Cereal Production in the US industry in 2024?
There are 75 businesses in the Cereal Production in the US industry in United States, which has grown at a CAGR of 2.6 % between 2019 and 2024.
Has the Cereal Production in the US industry in United States grown or declined over the past 5 years?
The market size of the Cereal Production in the US industry in United States has been declining at a CAGR of 1.3 % between 2019 and 2024.
What is the forecast growth of the Cereal Production in the US industry in United States over the next 5 years?
Over the next five years, the Cereal Production in the US industry in United States is expected to grow.
What are the biggest companies in the Cereal Production in the US market in United States?
The biggest companies operating in the Cereal Production market in United States are Kellogg Company, Post Holdings, Inc. and General Mills, Inc.
What does the Cereal Production in the US in United States include?
Manufacturing ready-to-eat cereal and Manufacturing oatmeal are part of the Cereal Production in the US industry.
Which companies have the highest market share in the Cereal Production in the US in United States?
The company holding the most market share in United States is Kellogg Company.
How competitive is the Cereal Production in the US industry in United States?
The level of competition is high and steady in the Cereal Production in the US industry in United States.
