Breakfast Cereals Market - New Flavors Added to Attract more Customers 2017 - 2025
Hectic pace and busy lifestyle are the key factors fuelling the demand for breakfast cereals, in turn giving impetus to the global breakfast cereals market. Changing food habits of people, increasing number of convenience stores, and growing rate of urbanization are helping the market grow with greater momentum. Various players in this market are manufacturing instant breakfast that require just hot water to get consumable food product. These types of products are more convenient and are expected to boost the overall market over for the forthcoming years. Rise in consumer awareness regarding the benefits of healthy breakfast cereals and increasing demand for low calorie products are further expected to propel this market. Companies are innovating these products and are offering various flavors to attract more customers.
Geographically, the global market for breakfast cereals is segmented into Europe, Asia Pacific, North America, and Rest of the World. Due to developed retail infrastructure and hectic lifestyle, North America and Europe hold significant share in the market. In addition, Asia Pacific exhibits remarkable growth opportunities due to factors such as increasing population, developing infrastructure, and adoption of western food culture.
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Presence of numerous players and opportunities are intensifying the competition amongst the market players. To provide consumers with better food options and expand the market share, players are introducing new food items and using natural raw materials for manufacturing to enhance health benefits. Some of the prominent players operating in this market include The Coca-Cola Company, Nestle Inc., General Mills and Post Holdings, Kellogg Co., Cereal Partners Worldwide (CPW), and PepsiCo Inc.
Global Breakfast Cereals Market: Overview
Breakfast cereals are a kind of convenience food made from processed grain. Often eaten in combination with fruit, milk, nuts, or yoghurt, these foods claim to contain vital minerals and vitamins. The production of breakfast cereals typically involves five stages – processing, mixing, extrusion, drying, and shaping. Breakfast cereals can be flaked, shredded, or puffed. They can also be coated with chocolate or frosting before drying.
Global Breakfast Cereals Market: Key Trends
Higher influence of Western food trends across the Eastern part of the world has been responsible for the greater preference for these processed foods in this region. Growing rate of urbanization, increasing number of convenience stores, and changing food habits of people are the major growth drivers of the global breakfast cereals market. Rising number of product launches featuring new, tastier flavors and higher nutritional content will lure more customers, driving the growth of the market.
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On the contrary, the presence of refined carbs and high amounts of sugar in some products might prevent several health conscious customers from buying these snacks, restricting growth. However, the introduction of more options such as muesli, pinole, and ragi might lead to greater demand for breakfast cereals in several countries.
Global Breakfast Cereals Market: Market Potential
Emergence of new market players in the global breakfast cereals market might intensify competition amongst the market players. A number of new products have been cropping up recently.
For instance, in March 2017, Native State Foods, a 2014-born company, announced that it will introduce an ancient Aztec power food created over 500 years ago, called ‘pinole’ in its new breakfast cereals. Pinole is a rich source of protein, antioxidants, and fiber, at the same time being gluten-free, non-GMO, and with lower sugar content. It debuted at the food and beverage industry’s largest show, Natural Products Expo West, in March 2017 in Anaheim. The mouthwatering flavors such as brown sugar and cinnamon, chocolate mocha, berry boost, Maqui berry, and coconut and almond developed by this firm are powerhouses of energy and nutrition.
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In India, new brands such as Patanjali and Soulfull have emerged in recent times. Soulfull, previously called Kottaram Agro Food Pvt Ltd, offers whole-grain breakfast cereals and ragi (finger millet) flakes, flavored with natural ingredients such as cocoa.
Global Breakfast Cereals Market: Regional Outlook
The global market for breakfast cereals has been segmented into North America, Asia Pacific, Europe, and the Rest of the World (RoW). North America and Europe, being major consumers of breakfast cereals, will display considerable demand over the forecast period. However, these markets might soon reach saturation.
Asia Pacific presents a whole new terrain for further expansion as the increasing per capita incomes of people, growing inclination toward ready-to-eat food, and new product launches are boosting demand. The hot cereals segment will hold a major share in the global market, driven by the increasing preference for hot cereals in India, South Korea, Thailand, Singapore, China, and Japan.
Global Breakfast Cereals Market: Competitive Analysis
Some of the major companies operating in the global breakfast cereals market are PepsiCo Inc., Cereal Partners Worldwide (CPW), Kellogg Co., General Mills & Post Holdings, Nestle Inc., and The Coca-Cola Company.
Leading companies such as General Mills & Post Holdings hold a major share in the global market for breakfast cereals. Product diversification and exploration of untapped regions are the key business strategies adopted by several market players. Mergers and acquisitions are also established by some leading companies. For instance, in January 2015, Post Holdings announced that it will acquire MOM Brands Co., a small sized, private company producing breakfast cereals.
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