Cereal, Pasta and Baking Mix Manufacturing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC C1162Revenue
$3.5bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,824
Businesses
325
Wages
$XXX.Xm
Cereal, Pasta and Baking Mix Manufacturing in Australia industry analysis
Over the past five years, the Cereal, Pasta and Baking Mix Manufacturing industry has faced a series of challenges. Manufacturers have been caught in the crossfire of international turbulence stemming from the Russia-Ukraine conflict, which has affected global wheat and coarse grain supply, two major components in cereal and pasta production. These disruptions have skyrocketed domestic wheat and coarse grain prices, straining manufacturers' profitability as they grapple with soaring purchase costs. The industry has also contended with intense price-based competition. Competition has been fuelled by supermarkets, like Coles and Woolworths, that have prioritised low-cost private-label products, as well as households who have looked to cut costs as high periods of inflation tighten their budgets. However, consumers’ shifting preference for niche products, driven by increasing health consciousness and boosted demand for convenience, have introduced growth opportunities. These opportunities are particularly benefiting smaller-scale manufacturers focused on whole grains and nutritious snacks. Industry revenue is expected to have climbed at an annualised 0.6% over the five years through 2023-24, to $3.5 billion. This includes an anticipated fall of 5.7% in 2023-24.
Trends and Insights
- The Russia-Ukraine conflict hiked manufacturers input costs, as tightened Australian budgets have intensified competition from low-cost, private-label products. However, growing health consciousness has opened up opportunities for small-scale organic producers.
- Health-conscious consumers prefer locally manufactured, low-sugar cereals, which protects the breakfast products segment from import competition. Baking mix sales have fallen as high inflation has tightened consumers’ budgets, despite innovations in specialty products like vegan and gluten-free mixes.
- Victoria has a long manufacturing history and high population, providing an ample labour supply for businesses. Although Victoria produces just 12.0% of Australia's wheat, its proximity to transport infrastructure and urban markets makes it an enticing location for manufacturers.
- New entrants must navigate regulations, considerable start-up costs and the need for product differentiation. Economies of scale and innovative technology benefit established companies, intensifying challenges for newcomers.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated $3.5bn in 2023.
Trends and Insights
The Russia-Ukraine conflict has hiked manufacturers' purchase costs
- The Russia-Ukraine conflict has caused a fall in global wheat and coarse grain supply and disrupted global exports, which surged domestic wheat and coarse grain prices over the two years through 2022-23.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Revenue and profitability growth will rely on manufacturers’ innovations
- Manufacturers must continue to innovate and find strategies to mitigate direct competition. High market saturation and stagnant demand for established products threaten the industry’s ongoing performance.
Biggest companies in the Cereal, Pasta and Baking Mix Manufacturing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Kellogg's Australia | 457.4 | |
San Remo | 340.1 | |
Sanitarium Health Food Company | 248.4 |
To view the market share and analysis for all 7 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 Breakfast products, Pasta and noodle products and Baking mixes. Breakfast products is the largest segment of the Cereal, Pasta and Baking Mix Manufacturing in Australia.
Trends and Insights
Consumers prefer locally manufactured cereals over high-sugar imports
- Cereals are an important food for many consumers, as they're a quick and relatively healthy way to kickstart the day. This has helped shield the segment from declining demand as household discretionary incomes have contracted over the three years through 2023-24.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Cake and Pastry Manufacturing in Australia
Complementors
- Flour and Grain Mill Product Manufacturing in Australia
- Bread Production in Australia
International industries
- Cereal Production in the US
- Cookie, Cracker & Pasta Production in the US
- Baking Mix & Prepared Food Production in the US
- Cereal Production in Canada
- Cookie, Cracker & Pasta Production in Canada
Table of Contents
About this industry
Industry definition
Industry producers manufacture prepared cereal and breakfast foods (including oatmeal), fresh and dried pasta and baking mixes.
What's included in this industry?
Cereal and breakfast product manufacturingPasta and noodle product manufacturingBaking mix manufacturingCompanies
Kellogg's AustraliaSan RemoSanitarium Health Food CompanyPurchase this report to view all 7 major companies in this industry.
Related Terms
RESEARCH AND DEVELOPMENT (R&D)WHOLESALE BYPASSPRIVATE-LABEL PRODUCTFUNCTIONAL FOODLOW GIIndustry Code
ANZSIC 1162 - Cereal, Pasta and Baking Mix Manufacturing in Australia
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
The Russia-Ukraine conflict hiked manufacturers input costs, as tightened Australian budgets have intensified competition from low-cost, private-label products. However, grow...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Health-conscious consumers prefer locally manufactured, low-sugar cereals, which protects the breakfast products segment from import competition. Baking mix sales have fallen...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- 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
Victoria has a long manufacturing history and high population, providing an ample labour supply for businesses. Although Victoria produces just 12.0% of Australia's wheat, it...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, 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
New entrants must navigate regulations, considerable start-up costs and the need for product differentiation. Economies of scale and innovative technology benefit established...
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 2018-2023
- 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
Major cereal, pasta and baking mix manufacturers operate in various market segments, making them highly competitive. To maintain their market share, major companies have offe...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Kellogg's Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of San Remo's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Sanitarium Health Food Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Kellogg's Australia, and factors influencing its performance in the industry
- Description and key data for San Remo, and factors influencing its performance in the industry
- Description and key data for Sanitarium Health Food Company, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry faces moderate regulations, which are mostly policies regarding food safety and standards. Financial support for businesses in the industry mainly comes in the f...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Rising production input prices, like for wheat and coarse grains, driven by uncontrollable shocks to the global market, have raised industry purchase costs. This has eaten in...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
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 Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments 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, Pasta and Baking Mix Manufacturing industry in Australia in 2024?
The market size of the Cereal, Pasta and Baking Mix Manufacturing industry in Australia is $3.5bn in 2024.
How many businesses are there in the Cereal, Pasta and Baking Mix Manufacturing in Australia industry in 2023?
There are 325 businesses in the Cereal, Pasta and Baking Mix Manufacturing industry in Australia, which has grown at a CAGR of 3.9 % between 2018 and 2023.
Has the Cereal, Pasta and Baking Mix Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Cereal, Pasta and Baking Mix Manufacturing industry in Australia has been growing at a CAGR of 0.6 % between 2018 and 2023.
What is the forecast growth of the Cereal, Pasta and Baking Mix Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Cereal, Pasta and Baking Mix Manufacturing industry in Australia is expected to grow.
What are the biggest companies in the Cereal, Pasta and Baking Mix Manufacturing market in Australia?
The biggest companies operating in the Cereal, Pasta and Baking Mix Manufacturing market in Australia are Kellogg's Australia, San Remo and Sanitarium Health Food Company
What does the Cereal, Pasta and Baking Mix Manufacturing in Australia include?
Cereal and breakfast product manufacturing and Pasta and noodle product manufacturing are part of the Cereal, Pasta and Baking Mix Manufacturing industry.
Which companies have the highest market share in the Cereal, Pasta and Baking Mix Manufacturing in Australia?
The company holding the most market share in Australia is Kellogg's Australia.
How competitive is the Cereal, Pasta and Baking Mix Manufacturing industry in Australia?
The level of competition is moderate and increasing in the Cereal, Pasta and Baking Mix Manufacturing industry in Australia.
