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Breakfast Cereals Market witness significant growth in some regions of Latin America

Breakfast Cereals Market witness significant growth in some

Breakfast cereals, typically produced from processed grains, can be consumed in dry, hot, or cold form. Kellogg’s introduced the first patented breakfast cereal in the form of cornflakes in 1895. Since then, breakfast cereals have created a multibillion dollar market on a global level. The global breakfast cereals market was valued at US$ 32.5 Bn in 2012, and the revenues are expected to reach US$ 43.2 Bn by the end of 2019. The market will expand at a CAGR of 4.1% over the forecast period, 2013-2019.

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Key market Dynamics

Packaged breakfast cereals have been witnessing immense popularity in developing economies, as consumers are increasingly preferring packaged, healthier food options over traditional, customary food for breakfast. Due to lower calorific value and higher nutritional content, these cereals are considered to be an ideal breakfast option worldwide. With rising awareness about the importance of healthy breakfast, the demand for breakfast cereals is expected to gain a major boost. Nutritional breakfast is being increasingly recommended for physical activeness, lower risk of chronic diseases, balanced levels of insulin and cholesterol, improved memory, and many more health benefits. Breakfast cereals form an important sector of the packaged food industry, and will continue to propel as the parent market thrives. Gluten-free cereals are trending high in the market, especially in North America and Europe. Moreover, whole grain cereals also highlight a popular trend, holding a positive impact on the market growth. A large number of innovative and flavored options in breakfast cereals are likely to accelerate the market growth, especially in developing markets.

However, manufacturers have to face multiple issues related to raw material procurement. This is expected to continue over the forecast period, posing a major challenge to the market growth. Despite a growing number of convenience stores in developing economies, rising commodity and energy prices will remain long-term restraints. Gluten content in cereals are being constantly scrutinized by consumers as well as governments, compelling companies to increase their gluten-free product range.

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Segment Analysis

There are two key segments of the global breakfast cereals market viz. hot cereals and RTE (ready-to-eat) cereals. The RTE cereals segment registered a value of US$ 27.8 Bn in 2012, and will remain the higher market shareholder over the forecast period. The hot cereals segment will however witness a relatively higher CAGR, attributed to burgeoning consumption in Asian countries.

Regional Analysis

Developed regions, such as North America have been early adopters of breakfast cereals. Despite being the leading market with a value of nearly 13.9 Bn in 2012, North America is currently saturated and is expected to witness a decline in the next few years. As consumers in developed regions are gradually seeking options in traditional breakfast and modern, on-the-go food packets against cereals, the market in North America is strongly foreseen to lose its key market position and revenue share to Asia Pacific, which is expected to be a major market for breakfast cereals by 2019 end. Growing popularity of cereal bars will continue in North America in the near future. On the other hand, Asian countries like India and China, especially due to exploding population, will represent the highest growth potential for the market. China is expected to continue to present a number of growth opportunities to breakfast cereal companies. The market will also witness significant growth in some regions of Latin America.

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Key Market Players

Leading players are consistently introducing innovative, fiber-rich, fruit flavored products with reduced fat content and oils. Kellogg’s have been the undisputable market leader since years. The other two key markets, PepsiCo General Mills, also have significant market shares. These three players collectively govern the global market with over 50% of the revenue share. Another notable market player is Cereal Partners Worldwide (CPW), which is a joint venture between General Mills and Nestle. CPW has grabbed a sizeable market within a shorter span, and is expected to witness higher growth rate during the forecast period.

Persistence Market Research (PMR) is a third-platform research firm. Our research model is a unique collaboration of data analytics and market research methodology to help businesses achieve optimal performance. To support companies in overcoming complex business challenges, we follow a multi-disciplinary approach. At PMR, we unite various data streams from multi-dimensional sources. By deploying real-time data collection, big data, and customer experience analytics, we deliver business intelligence for organizations of all sizes.

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