Enjoy complimentary customisation on priority with our Enterprise License!
The North America breakfast cereals market size is forecast to increase by USD 9.65 billion, at a CAGR of 6.33% between 2023 and 2028.
The market experiences a growing trend in the preference for cereals as a breakfast snack among the majority of the population. This trend is expected to continue increasing during the forecast period, driven by consumers adopting the habit of snacking between meals or even skipping lunch. Associated British Foods Plc, operating through its subsidiary ABF Grain Products Ltd, provides breakfast cereals under the brands Jordans, dorset cereals, and RYVITA. The market's growth is influenced by the rising convenience and changing consumer consumption patterns, contributing to global trends and forecasts in the cereal industry.
The market shows an accelerated CAGR during the forecast period.
To get additional information about the market report, Request Free Sample
Growing consumer awareness and emphasis on health and wellness is notably driving the market. Consumer preferences in North America are undergoing a significant transformation, marked by a growing emphasis on health and wellness. This shift is primarily fueled by increasing consumer awareness regarding the importance of nutrition in daily meals. Consumers are actively seeking breakfast cereals that offer additional nutritional benefits, including whole grains, fiber, and essential vitamins. Additionally, they are interested in options with reduced sugar content and added vitamins and minerals to cater to various dietary restrictions and meet the needs of athletes, fitness enthusiasts, and other demographics. This demand for healthy breakfast options has led to a rise in product launches featuring exotic ingredients such as oats, flax seeds, and chia seeds.
Furthermore, consumers also prioritize convenience and look for quick breakfast options that align with their busy-conscious lifestyles. As a result, the distribution channels for instant breakfast cereals have expanded to include supermarkets, convenience stores, and online platforms, enhancing brand visibility and accessibility. Additionally, whole grains are highly prized for their rich nutrient profile and potential health advantages, such as improved heart health and digestion. Moreover, the shift in consumer behavior is compelling manufacturers to innovate and reformulate their products, integrating these desired nutritional elements to meet the evolving demands of fitness enthusiasts and enhance brand visibility in the market. Hence, such factors are driving the market growth during the forecast period.
Increasing internet and e-commerce users fuelling breakfast cereal sales are an emerging trend in the market. The market in North America is expanding, and many enterprises, such as Amazon.com, Inc., have entered the market. In addition, owing to the growing demand for online purchases, new market players enter the market in North America for online distribution. Furthermore, the growing food delivery services and increasing Internet penetration across the region are expected to propel the market in North America.
Moreover, the online distribution of breakfast cereals in North America is expected to increase during the forecast period, owing to the rising Internet penetration and the growing number of smartphone users across North American countries. In addition, online distribution channels help breakfast cereal manufacturers reach consumers in remote locations. Furthermore, subscriptions offered by e-commerce companies help consumers repurchase breakfast cereal products. Hence, such factors are driving the market during the forecast period.
Fluctuations in raw material prices for cereals is a major challenge hindering the market. Companies in the market in North America are currently trying to address the challenge of food price fluctuations by entering into purchase contracts with manufacturers and suppliers of foods, including flour and sugar so that prices are fixed in advance as of the execution date. In addition, cereals are healthy alternatives to regular meals, but their high price is a major challenge to consumers.
Moreover, natural disasters and adverse weather conditions, such as floods, earthquakes, droughts, frost, and pestilence, negatively affect raw materials and commodities used in the preparation of whole-grain and high-fiber food products. For instance, oat plantations are vulnerable to natural disasters and adverse weather conditions, which can reduce the quality of oats and affect their supply. Furthermore, the companies of oat products rely on many suppliers in various locations and production suitability. Hence, such factors are hindering the market growth during the forecast period.
The convenience of the ready-to-eat (RTE) segment will increase the market. The market in North America is experiencing a strong increase in the growth of ready-to-eat cereals, establishing itself as a major product type. In addition, consumers' hectic schedules and growing need for simple, time-saving breakfast options have boosted the popularity of ready-to-eat cereals. Moreover, these products are ready to eat immediately and do not require additional preparation, responding to the current consumer's penchant for on-the-go and convenient meals. Furthermore, ready-to-eat cereals also called cold cereals, are presumed to be the convenient option as they are consumed directly after mixing with milk, yogurt, or fruit. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. Offline segments are critical for the expansion of the market in North America since they offer customers convenience and rapid access. In addition, grocery stores, supermarkets, and convenience stores all contribute considerably to the market. Furthermore, the practical in-store experience enables customers to compare cereal selections, increasing customer engagement and loyalty.
The offline segment was the largest segment and was valued at USD 15.68 billion in 2018.
For a detailed summary of the market segments Request for Sample Report
Moreover, offline channels allow for spontaneous purchases, which favorably influences consumer decisions. In addition, prominent shelf placements, appealing displays, and in-store promotions increase product visibility and influence purchasing decisions. Furthermore, brick-and-mortar establishments also offer the benefit of speedy fulfillment, which meets the desire for on-the-go and quick breakfast options. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Calbee Inc., Food For Life Baking Co. Inc., General Mills Inc., Kellanova, Manischewitz Co., Natures Path Foods, Nestle SA, New England Natural Bakers, PepsiCo Inc., Post Holdings Inc., The Simply Good Foods Co., Three Wishes Foods Inc., and Weetabix Ltd.
The market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market witnesses a substantial volume driven by a growing demand for healthy breakfast options among health-conscious consumers. The market sees an influx of product launches incorporating exotic ingredients like flax seeds and chia seeds, catering to the preferences of busy-conscious individuals. Emphasizing reduced sugar content and added vitamins and minerals, the market targets diverse demographics, including children, adults, seniors, and athletes. Influenced by Western culture and food practices, the impact on dietary patterns is significant, contributing to the market's value in the US, Canada, and Mexico. With a focus on nutritious and healthy food, brand visibility is enhanced, particularly among fitness enthusiasts.
Furthermore, ready-to-eat breakfast cereals, featuring flavor variants and health-promoting properties, leverage innovative strategies to compete with traditional breakfast foods. General Mill's Annual report emphasizes the growing influence of Millennials and the young generation, driving sales through supermarkets/hypermarkets and other retail distribution channels. The market's competitiveness extends to artisanal food services, packaging, and catering to rural and tier-II cities. Nielsen and NACS magazine provide valuable statistics on consumer preferences, indicating a shift towards convenient and fresh breakfast options, as reported by Convenience Store News respondents.
Additionally, the North America breakfast cereal market caters to busy-conscious consumers seeking convenient yet nutritious options. With a focus on low-calorie and whole grain-based products, it addresses the needs of individuals with busy lifestyles. This market offers a variety of options, including processed grain formulations and quinoa-based cereals, appealing to health-conscious consumers in the US market, Canada market, and Mexico market.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.33% |
Market Growth 2024-2028 |
USD 9.65 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.15 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Associated British Foods Plc, B and G Foods Inc., Bobs Red Mill Natural Foods Inc., Calbee Inc., Food For Life Baking Co. Inc., General Mills Inc., Kellanova, Manischewitz Co., Natures Path Foods, Nestle SA, New England Natural Bakers, PepsiCo Inc., Post Holdings Inc., The Simply Good Foods Co., Three Wishes Foods Inc., and Weetabix Ltd. |
Market dynamics |
Parent market analysis, 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 |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
BUY NOW Full Report and Discover more
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.