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The breakfast cereals market is estimated to increase by USD 5.62 billion and grow at a CAGR of 4.43% between 2022 and 2027. Market growth hinges on multiple factors, notably the uptick in product launches, surging demand for ready-to-eat (RTE) breakfast cereals, and the expanding working population. However, challenges persist, including the volatility in food prices, potential side effects associated with excessive consumption, and the prevalence of popular alternative products. Despite the promising trajectory driven by increased consumer interest and changing lifestyles, uncertainties stemming from fluctuating prices and health concerns pose obstacles to sustained growth. Overcoming these challenges necessitates strategic planning and innovation to navigate market fluctuations and capitalize on emerging opportunities in the breakfast cereal industry. Efforts to address consumer health concerns and diversify product offerings are critical for maintaining momentum and meeting the evolving needs of a dynamic market landscape.
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This report extensively covers market segmentation by distribution channel (supermarkets and hypermarkets, independent retailers, convenience stores, and others), product type (ready-to-eat cereals and hot cereals), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the supermarket and hypermarket segment will be significant during the forecast period. Two of the key distribution channels in the organized retailing sector of breakfast cereals are supermarkets and hypermarkets, which make purchasing easier for customers. The global expansion of supermarkets and hypermarkets is one of the key factors anticipated to propel the segment's growth. Tesco Plc (Tesco), Carrefour Group, and Target Brands Corp. (Target) are some of the largest hypermarkets and supermarkets.
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The supermarkets and hypermarkets segment was valued at USD 10.25 billion in 2017 and continued to grow until 2021. In supermarkets and hypermarkets, customers can select from a variety of goods based on factors like cost and quality. For those who favor the conventional method of shopping, these stores are convenient. It is also anticipated that the segment will grow as supermarkets and hypermarkets become more prevalent in developing nations. Moreover, consumer purchasing preferences are shifting to supermarkets and hypermarkets as a result of rising disposable incomes and rapid urbanization. Furthermore, innovative and attractive displays in offline points of sale have been made possible by new product launches and an increase in marketing and promotional spending by vendors. Therefore, such factors are anticipated to drive the growth of the supermarket and hypermarket segment in the global market during the forecast period.
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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In North America, breakfast cereal consumption is high. Hot breakfast cereals, in particular, are frequently consumed due to their nutritional advantages over ready-to-eat breakfast cereals. Moreover, the fact that North American consumers have begun to view them as a snack is another motivating factor behind the market growth in the region. As consumers start skipping lunch or eating between meals, this trend is expected to grow during the forecast period.
Furthermore, the market for kids' organic breakfast cereals is primarily in North America. Organic cereals are also very popular with young consumers. The market share of manufacturers who adapt their product offerings to consumer preferences is likely to increase. Children and teenagers are typically the target audience for marketing. Furthermore, health issues arise as a result of changing lifestyles and rising obesity rates. Thus, as consumers become more aware of the link between obesity and heart disease, they start looking for healthier options. All these factors will influence the demand for healthy and organic breakfast cereals, which in turn, will boost the market growth during the forecast period.
The market is influenced by diverse food habits, particularly in Western culture, and consumer dietary patterns emphasizing convenience and on-the-go eating habits. Brands prioritize brand visibility to capture consumer attention in convenience stores and adapt production and capacity to meet demand. Effective network layouts and partnerships with distributors ensure efficient supply chains, supported by price trend and deficit analyses. Breakfast cereals serve multiple purposes, catering not only to breakfast but also to lunch and dinner preferences. Ingredients like processed seed grains, milk, and curd contribute to their healthy nature, offering nutritional content and innovative flavors. These cereals address various health conditions, including skin health, digestion, and immune system support, while providing healthier food options compared to traditional breakfast foods with high calorific value. Flavor innovations like flavored cereals appeal to diverse consumer tastes, reflecting the market's commitment to meeting evolving consumer needs.
The increasing product launches are notably driving market growth. With numerous domestic and international vendors competing in the market, the global market is fragmented. To draw in more customers and improve their visibility in the market, these vendors are providing a range of breakfast cereal products, supported by a number of new product launches and expansions. The growth of the global market is anticipated to be fueled by the rising number of new product launches and the expansion of existing ones by numerous manufacturers around the world during the forecast period.
Some of the prominent new product launches include the announcement by General Mills Inc. in 2021 about the new products that would be joining its RTE breakfast cereal lineup. These products include CinnaGraham Toast Crunch, Reese Puffs Cluster Crunch, Strawberry Banana Cheerios, PJ Masks Cereal, and Plentiful. Similarly, the US-based Kellogg Co. expanded its product portfolio in India in 2021 by launching Froot Loops in the cereals category in the country. Hence, such an increase in the number of product launches is expected to drive the growth of the global market during the forecast period.
The increasing number of internet and e-commerce users are major trends in the market growth. New market participants are entering the global market for online distribution as a result of the rising demand for online purchases. During the forecast period, the market under consideration is also anticipated to grow as a result of expanding food delivery services, a growing number of smartphones, and rising internet usage.
Manufacturers of breakfast cereal can reach consumers in remote places owing to online distribution channels. E-commerce businesses that offer subscription services also encourage customers to repeat the purchase of a particular breakfast cereal. During the forecast period, the convenience provided by the online platform, such as the simplicity of using debit or credit cards for payment from the convenience of the consumer's home and the ease of product delivery, is anticipated to propel market growth.
The fluctuation in food prices is a major challenge impeding market growth. The average annual increase in food prices over the last few years has been close to 2.7%. Cereals are nutritious alternatives to typical meals, but their high cost presents a significant barrier for consumers. Natural disasters and unfavorable weather, like floods, earthquakes, droughts, frost, and pestilence, have an impact on the raw materials and goods used to make whole-grain and high-fiber food products. Oat plantations, for example, are susceptible to natural disasters and unfavorable weather, which can lower the quality of oats and affect their supply. Hence, the producers of oat products rely on a wide range of suppliers in different regions.
Furthermore, due to abrupt shifts in the economy and sociopolitical environment, like the Russia-Ukraine war, food prices fluctuate. Year-over-year (y-o-y) fluctuations in grain prices impede the development of the market. Therefore, these factors have been recognized as difficulties that are anticipated to hinder the expansion of the market for breakfast cereals during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bio familia AG - The company primarily offers cereal products. The key offerings of the company include breakfast cereals such as crunchy muesli, organic muesli, and kids muesli.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The Market is shaped by diverse food habits and consumer dietary patterns influenced by Western culture. Brand visibility and on-the-go eating habits drive production and capacity expansions, with distributors and partners ensuring efficient network layouts. Price trend and deficit analyses inform supply chain management, catering to breakfast purposes and dinner preferences. Ingredients like processed seed grains, milk, and curd contribute to the healthy nature of packaged cereals, offering nutritional content and healthier food options. Health conditions like skin health, digestion, and immunity are addressed through fortified cereals rich in vitamins, minerals, and nutrients. Innovative offerings like protein-rich smoothies, yogurt bowls, and avocado toasts cater to evolving consumer preferences for healthier breakfast choices alongside traditional and regional delicacies.
Market alternatives such as frozen waffles and yoghurt provide variety, with import-export analysis and production analysis guiding revenue pockets and technological innovations, including augmented reality experiences like Kellogg's Blippar app. The market is shaped by modern on the go eating habits, prompting brands to offer innovative cereals and flavoured cereals to cater to consumer preferences. Price trend analysis and deficit analysis ensure competitive pricing strategies while emphasizing healthier choices to address concerns regarding fat content and traditional breakfast foods' high calorific value.
Manufacturers focus on fortifying cereals to support the immunity system and manage blood pressure and cholesterol levels, promoting overall health and well-being. Savory breakfasts, including sausage flavored cereals, cater to diverse tastes. Import-export and production analysis guide market strategies, leveraging multi-channel distribution to reach wider audiences. Brands like Coco Pops cereal brand lead the market with their iconic cereal brand, reflecting the industry's commitment to innovation and consumer satisfaction.
Breakfast Cereals Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.43% |
Market growth 2023-2027 |
USD 5.62 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.5 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, Japan, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Associated British Foods Plc, B and G Foods Inc., Bagrrys India Pvt. Ltd., Bio familia AG, Bobs Red Mill Natural Foods Inc., Calbee Inc., Food For Life Baking Co. Inc., General Mills Inc., Hometown Food Co., Kellogg Co, Manischewitz Co., Marico Ltd., Natures Path Foods, Nestle SA, New England Natural Bakers, PepsiCo Inc., Post Holdings Inc., The Simply Good Foods Co., and Three Wishes Cereal |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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