Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
Breakfast cereals are highly fortified food products that incorporate various nutritional values such as minerals, vitamins, iron, zinc, etc. Breakfast cereals are derived from different grains such as barley, wheat, rice, oat, corn, and others. These breakfast cereals are processed into flour, mixed with other ingredients, cooked, dried, and shaped into different size. They are 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 is estimated to be valued at US$ 46,811.17 million in 2021 and is expected to exhibit a CAGR of 4.1 % over the forecast period (2021-2028).
- In August 2020, Mondelez India entered the breakfast cereals space with the launch of Bournvita Fills. With this new launch, the company further expanded its product portfolio in the region.
- In September 2020, Kellogg’s, in partnership with Blippar, launched the first web-based Augmented Reality promotional campaign in the Middle East, including the United Arab Emirates. Kellogg became the first brand in the GCC region to pioneer WebAR technology across a multi-channel marketing campaign for its Coco Pops cereal brand.
North America held dominant position in the global breakfast cereals market in 2020, accounting for 31.99% share in terms of value, followed by RoW and Europe, respectively.
Figure 1. Global Breakfast Cereals Market Value (US$ Mn), by Region, 2020
Increasing number of convenience stores has raised the brand visibility which in turn has increased the sale of such food is expected to augment the market growth of the breakfast cereals. According to the Forbes, convenience store industry sales totaled $616.3 billion in 2017 in U.S. Rapid urbanization around the globe coupled with the changing consumer breakfast habits is also expected to augment the market growth of breakfast cereals.
Changing lifestyle and consumption pattern of consumers across the Asia Pacific region coupled with the increasing population is expected to drive the market growth. Growth in the middle-class population and development of the economy in the region is also contributing to the market growth of the breakfast cereals. According to the World Economic Forum, India's 80% of households in 2030 will be middle-income, up from about 50% from now. The middle class will drive 75% of consumer spending in 2030.
Rising demand for cereals bar among health-conscious consumers is expected to provide potential growth opportunities to the market of the breakfast cereals. For instance, in September 2018, Nestlé has expanded its snacks portfolio with the launch of new fruit and nut-based snacks brand Yes! The brand’s five cereal bar variants claim no added sugar or artificial additives. Thus, the growing demand for cereal bars is expected to accelerate market growth.
Increasing focus of manufacturers in attractive packaging and effective marketing strategies is projected to open up a new avenue to the market of breakfast cereals. Growing demand for cereals with no preservatives and sugar is further projected to augment the market growth of the breakfast cereals. Furthermore, the growing demand for organic and whole grain-based cereals is further expected to bolster the market growth.
Breakfast Cereals Market Report Coverage
||Market Size in 2021:
||US$ 46,811.17 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 62,204.02 Mn
- Regions: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
- Product Type: Hot cereals and Ready-to-eat cereals
Kellogg Co., General Mills, PepsiCo., Cereal Partners Worldwide (CPW), Post Holdings, and The Weetabix Food Company
- Rapid urbanization and changing consumption pattern of consumers
- Increasing number of supermarkets & hypermarkets
|Restraints & Challenges:
- Availability of alternative food
Growth in the infant food industry has elevated the breakfast cereal industry due to rising demand for convenient baby food which is accelerating the market growth. For instance, in May 2019, Nestlé has 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, using locally grown ingredients.
Acquisition and merger among manufacturer in the market is a major trend in the market and this is expected to propel the market growth of the breakfast cereal. For instance, in May 2018, Kellogg’s has acquired a stake in packaged food manufacturer Tolaram Africa Foods (TAF), – a subsidiary of Tolaram Group – for $420 million, in order to expand its presence in the African market.
Figure 2. Global Breakfast Cereals Market Share, By Product Type 2020
Key Takeaways of the Graph:
- The Ready-to-eat cereals in product type segment held dominant position in the market and accounted for 81.51% share in the global breakfast cereals market in 2020. The segment is expected to reach US$ 48,330.88 million in 2028.
- Ready-to-eat breakfast cereals dominate the whole market owing to the convenience solution it offers to the consumers. The market is mostly driven by consumers having busy lifestyles, as these are the processed grain formulations suitable for consumption without further cooking.
The availability of a low-cost substitute for breakfast cereals is expected to limit market growth over the forecast period. Alternative food range includes smoothies, shakes, eggs, yogurt, fruits, and toast. Thus, the market of breakfast cereals is facing stiff competition from the traditional breakfast option.
Lack of awareness regarding the health benefits of breakfast cereals across rural areas of developing countries is expected to hamper market growth of the breakfast cereals over the forecast period.
- Kellogg Co.
- General Mills
- Cereal Partners Worldwide (CPW)
- Post Holdings
- The Weetabix Food Company