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Breakfast Cereals Market Size, Share and Forecast 2026
Breakfast Cereal Market
, October 11, 2019 )
• The fast-paced lifestyles across the globe has been forcing traditional breakfast foods such as porridges, buns and breads to get replaced by convenient products. The on-the-go Breakfast cereals evolved as healthy alternative owing to its nutritional benefits and convenience. Breakfast cereals are conventional food categories processed from grains such as Wheat, Oats, Rice, and Corn. Breakfast cereals are high in fiber and nutrients, and contain very low cholesterol. These food products are available as hot cereals and ready to eat cereals.
• The global breakfast cereals market growth is majorly driven by the need for nutritious food as breakfast to help fuel the physical and mental health. Rising risk of diseases such as Diabetes, Obesity, and cardiac issues owing to sedentary lifestyles is motivating people towards consumption of low-calorie food, thereby boosting the demand for breakfast cereals. A porridge made of whole grains contain zero cholesterol, thus making it ideal food for heart health. Furthermore, the growing cereal production across the world is also supporting the growth of breakfast cereals market. According to OECD-FAO Agricultural Outlook 2018-2027, the global cereal production is likely to grow by 13% between 2018 and 2027. The consumption of cereals is projected to witness 14% growth over the same period to reach 2.9 billion tons in 2027 and this growth is attributable to human food uses. The development of organic cereals is estimated to provide new growth avenues to the breakfast cereals market over the forecast period. Organic cereals are holding the health-savvy population who would otherwise shift towards alternatives owing to GMO issues of cereals.
• The adverse health effects of cereals on human health if consumed heavily is hindering the growth of Breakfast Cereals Market. Over consumption of cereals increase the risk of Arthritis. Furthermore, added sugar content of these products is limiting the growth of the market. The manufacturers of breakfast cereals add artificial sweeteners to enhance the consumer sensory experience. However, over intake of sugar may result in type-2 Diabetes and heart disease.
• By product type, the Breakfast Cereals Market is segmented into bars, flakes, fillows, granola and others. Among all, flakes is the largest segment with wide consumer base and a significant market share. Most of the renowned companies including Kellogg’s, Nestle, and General Mills are promoting flakes processed from Corn and Wheat as one of their key breakfast cereal products owing to the demand for these products.
• Moreover, companies are focusing towards flavored cereal products with high sugar content to gain significant traction among kids. Apple, cranberries, strawberries, and coconut are the major flavors available in the global market. The potential of these flavors to balance the inherent taste of cereal bases is enhancing the consumer spectrum for flavored breakfast cereals among adult population.
• North America is dominating the global Breakfast Cereals Market in 2018 and estimated to hold a share of XX% in 2018 owing to the large consumer base for these products. Need for ready to eat food coupled with modernization made North America along with several European nations as the early adopter of breakfast cereals. However, Asia Pacific region evolved as the fastest growing market for breakfast cereals owing to the rising disposable income, growing retail market and convenience stores in the region. Many startup companies have recently entered into the market with innovative product formulations and are boosting sales significantly. For instance, Bangalore based Kottaram Agro Foods Pvt Ltd that makes breakfast cereals under the brand Soulfull received an investment of $5.37 million in March 2018. The sales of the company is likely to grow by 5X times by the end of 2019.
• The Breakfast Cereals Market is highly competitive with new players entering the market. Some of the major players include The Kellogg Company, General Mills, Inc., Nestlé S.A., PepsiCo, Inc., and Clif Bar & Company. The key players are adopting various key strategies such as product launches, collaborations, mergers & acquisitions which are contributing to the growth of the Breakfast Cereals Market globally. For instance,
• The Kellogg Company is eyeing to buy a stake in Indian based Haldiram's to boost its snack business in the country. The alliance will also provide an opportunity to diversify its portfolio of breakfast cereals in Western India.
• In June 2016, The Kellogg Company acquired Pure Organic, U.S. based manufacturer of organic breakfast bars. This acquisition marked the boom of organic cereals in the breakfast cereals market.
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