Breakfast cereals are highly fortified food products that incorporate various nutritional values, such as minerals, vitamins, iron, zinc, and others. Breakfast cereals are derived from different grains such as barley, wheat, rice, oat, corn, and others. Then, the derived breakfast cereals are processed into flour, mixed with other ingredients, cooked, dried, and shaped into different sizes. It is available in different forms such as flaked, puffed, and shredded, with an excellent source of fiber and minerals. Breakfast cereals are easily available across supermarkets and hypermarkets, departmental stores, pharmacy, convenience stores, and others.
The global breakfast cereals market was valued at US$ 49,002.86 million in 2022 and is expected to exhibit a CAGR of 4.84% over the forecast period (2023-2030).
Global Breakfast Cereals Market- Drivers
Increasing number of convenience stores
Increasing number of convenience stores has raised the brand visibility of cereals, which in turn has increased the sales of such food products, and this is expected to augment the market growth of breakfast cereals. According to the Forbes, convenience store industry sales totaled US$ 616300 Mn in 2017 in the U.S.
Rapid urbanization around the globe, coupled with changing Consumer breakfast habits is also expected to augment the market growth of breakfast cereals.
Changing lifestyle and consumption pattern of consumers across the Asia Pacific, coupled with the increasing population is expected to drive the growth of market. Growth in the middle-class population and development of the economy in the region is also contributing to the market growth of the breakfast cereals. According to the World Economic Forum, India's 80% of households in 2030 will be middle-income, up from about 50% from now. The middle class will drive 75% of consumer spending by 2030.
Figure 1. Global Breakfast Cereals Market Value (US$ Mn), by Region, 2022
North America held a dominant position in the global breakfast cereals market in 2020, accounting for its 32% market share, in terms of value, followed by RoW and Europe, respectively.
Global Breakfast Cereals Market- Restraints
Availability of a low-cost substitute for breakfast cereals
Availability of a low-cost substitute for breakfast cereals is expected to limit the market growth of breakfast cereals over the forecast period. Alternative food range includes smoothies, shakes, eggs, yogurt, fruits, and toast. Thus, the market of breakfast cereals is facing a stiff competition from the traditional breakfast option.
Moreover, lack of awareness about the health benefits of breakfast cereals across rural areas of developing countries is also expected to hamper market growth of the breakfast cereals over the forecast period.
|Base Year:||2022||Market Size in 2022:||US$ 49,002.8 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2023|
|Forecast Period 2023 to 2030 CAGR:||4.84%||Forecast Period:||2023-2030|
Kellogg Co., General Mills, PepsiCo., Cereal Partners Worldwide (CPW), Post Holdings, and The Weetabix Food Company
|Restraints & Challenges:||
Global Breakfast Cereals Market- Trends
Growth in the infant food industry has elevated the breakfast cereal industry due to rising demand for convenient Baby Food, and this is accelerating the market growth of breakfast cereals. For instance, in May 2019, Nestlé, launched an organic product within its Ceregrow brand of cereals for children, over the age of 12 months, produced from 100% organic ragi, wheat, milk, and rice. The product is processed at the company’s Samalkha factory in Haryana, India, using locally grown ingredients.
Acquisition and merger among manufacturers of cereal breakfast in the market is a major trend in the global breakfast cereals market and this is expected to propel the market growth of the breakfast cereal. For instance, in May 2018, Kellogg’s acquired a stake in the packaged food manufacturer, Tolaram Africa Foods (TAF), a subsidiary of Tolaram Group, for US$420 million, in order to expand its presence in the African market.
Figure 2. Global Breakfast Cereals Market Share, By Product Type 2022
Key players operating in the breakfast cereals market include Kellogg Co., General Mills, and PepsiCo. Cereal Partners Worldwide (CPW), Post Holdings, and the Weetabix Food Company
Breakfast cereals are type of grain product, used to satisfy person's appetite for food during the late evening and early morning hours. Cereal, technically pronounced as chee-sorel, is a classic breakfast food product made of cooked dried cereal grains. It is traditionally eaten as a light snack food, or part of a hearty breakfast, usually in Western cultures. Although, breakfast cereals are available in a wide variety of flavors and ingredients, the most popular types are wheat, corn, oat, cornmeal, and soy.
Rapid urbanization and changing lifestyle of consumers are driving market growth of the breakfast cereals. Moreover, continuous launch of new varieties in product is also expected to drive growth of the market. For instance, in August 2021, Kellogg Company expanded its product portfolio in India by adding the Froot Loops brand of cereals in the country. Froot Loops is among the fastest growing cereal brands globally, and has been introduced in the Indian market based on the strong consumer insights.
On the other hand, availability of alternate food range for breakfast is expected to restrict growth of the market.
Key features of the study: