North America Breakfast Cereals Market by Distribution Channel and Product - Forecast and Analysis 2024-2028

North America Breakfast Cereals Market Forecast 2024-2028

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.

Market Overview

The market shows an accelerated CAGR during the forecast period.

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Key Market Driver 

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.

Significant Market Trends 

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.

Major Market Challenge 

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.

Market Segmentation by Product

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.

Market Segmentation by Distribution Channel

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.

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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.

Company Overview

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.

• Key Offering - B&G Foods Inc: The company offers breakfast cereals such as banana and Cream, Cinnabon, Maple Brown sugar cereals through its subsidiary Cream of Wheat.
• Key Offering - Bobs Red Mill Natural Foods Inc: The company offers breakfast cereals such as Organic Protein Oats, Protein Oats, Vanilla Shake Homestyle Granola, Classic Instant Oatmeal and Apple Cinnamon Instant Oatmeal.

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.

Segment Overview

The research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Distribution Channel Outlook
  • Offline
  • Online
• Product Outlook
  • Ready-to-eat (RTE)
  • Hot cereals

Market Analyst Overview

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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market research and growth analysis of factors that will challenge the growth of market companies

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