Global Breakfast Cereals Market is projected to register a CAGR of 4.78% during the forecast period 2022-2031.
The situation of the Covid-19 pandemic had prompted a shift from eating out to cooking at home as consumers seek healthier, safe, and convenient food options. With this trend expected to continue post pandemic, manufacturers operating in this business are rolling out private label products which consumers find themselves in a convenient environment to shop and cook, with added safety of pre-packaged ingredients. The pandemic has changed the way consumers plan their meals, where new offerings are giving people the flexibility to shop conveniently and create healthy meals in a similar fashion to scratch cooking. On the other hand, the consciousness have increased among consumers and brands with help of retailers are vying on maintaining the highest safety standard with quality and sustainability as a major concern.
With the growing demand from conscious consumers for supermarkets to provide a broader variety of food products to cater to specific preferences, such as natural ingredients to organic and free-from products, brands operating in this segment are continuing to expand its offering to include more innovative products that promote sustainable and healthy eating.
COVID-19 has also resulted in the generation of opportunities for many private players to emerge in the markets to cater to the inflated demand. Also, the demand for innovated breakfast products is growing in the country among urban population since such meals are a quick and convenient source of nutrition and energy.
The growth of the market is mainly witnessed due to the changing food habits and influence of western culture on the dietary patterns of consumers, as it provides a convenience solution to readily accessible food that optimize the ease of consumption without further preparation. Also, consumers preference towards nutritious and healthy food on regular basis is driving the market. Also, the robust growth of convenience stores that promotes brand visibility is driving the growth of breakfast cereals market.
Geographically, the North America market, led by the United States, holds the majority of the global breakfast cereal market demand, followed by Europe. Asia-Pacific is predicted to grow at an accelerating rate over the forecast period due to increased preference of China and India for hot cereals containing rice or wheat as major ingredients. However, the market is stagnated due to the consumers equal inclination towards traditional breakfast foods, which is therefor restraining the growth of the market.
Key Market Trends
Increasing Demand for Ready-to-Eat Breakfast Cereals
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 lifestyle as these are the processed grain formulations suitable for consumption without further cooking. Whole grain-based ready-to-eat cereals are leading the market owing to the value-addition in terms of micronutrients in these products. Also, the leading companies are trying to blend organic and healthy ingredients in order to boost the sales of breakfast cereals. Also, the manufacturers are also utilizing traditionally grown cereal grains such as quinoa to create innovation in breakfast cereal products. For instance, Quinoa Crack offers quinoa-based gluten-free, super snacking solution.
Asia-Pacific is the Fastest Growing Region
In the Asia-Pacific region, China dominates the market contributing the maximum market share, followed by Japan and Australia. This is due to the change in breakfast cereals consumption pattern and inclination towards healthier products. Also, increased adoption of the western lifestyle has paired the driving factors of the market sales. Product development of low carb, high fibre, multigrain and fortified Breakfast Cereals that appeal to health-conscious consumers have triggered the market growth. For instance, in November 2018, Kellogs launched a new cereal “HI! Happy Inside” that consists of fibres, prebiotics and probiotics and is specially designed to support digestive wellness. Expanding retail distribution channel is another factor expanding sales in rural and relatively small cities.
The breakfast cereals market is competitive in nature having a large number of domestic and global player competing for market share. Some of the major key players in the market include The Kellogg Company, Attune Foods, General Mills, Dr. Oetker, Bob’s Red Mill Natural Foods, and others. The key market players are significantly investing in the research and development activities in the breakfast cereals market to introduce new and innovative variants to meet the emerging consumer demand for healthy and clean label foods products.
SDKI Inc.’s goal is market scenarios in various countries such as Japan, China, the United States, Canada, the United Kingdom, and Germany. Is to clarify. We also focus on providing reliable research insights to clients around the world, including growth indicators, challenges, trends and competitive environments, through a diverse network of research analysts and consultants. With SDKI gaining trust and a customer base in more than 30 countries, SDKI is even more focused on expanding its foothold in other pristine economies.
15/F Cerulean Tower, 26-1 Sakuragaoka-cho
Tokyo, Shibuya-ku, Japan