The need for convenience and busy schedules of people has been propelling the processed food industry, which includes breakfast cereals. Developed nations already have breakfast cereals as part of their regular course of meals. Increasing per capita income in developing countries is further giving the breakfast cereal industry a new dimension to look for. However, the breakfast cereals market in developed economies tends to saturate mainly due to the search for other traditional breakfast as well as some on-the-go breakfast alternatives such as cereal bars.
The saturating market is compensated with growing breakfast cereals markets in Asia as well as some of the countries in Latin America. Some of the markets such as China and India offer high growth potential due to their large population. People in these countries are including breakfast cereals in their regular meals due to changing food habits. Breakfast cereals are broadly marketed under two segments: RTE cereals and Hot cereals. The market for RTE cereals is much bigger as compared to that of Hot breakfast cereals.
The major restraint for the breakfast cereals market is manufacturers facing the issue of raw material procurement due to environment-related concerns. This includes the procurement of palm oil, one of the basic ingredients used in the processing of breakfast cereals. While increasing numbers of convenience stores in developing economies is accelerating the breakfast cereals market, rising commodity and energy prices are emerging as key concerns. The shift in consumer trend towards various alternatives, such as fruits, toasts and eggs and time saver snacks such as cereal bars, is emerging as yet another restraint for the breakfast cereals market.
Special emphasis on healthy living has prompted market players to introduce new products, which suit all age groups and lifestyles. International players in breakfast cereals market are also focusing on reformulating their products by replacing harmful hydrogenated fat and oils with healthier ingredients such as fiber and fruits. Demand for gluten-free cereals has increased in the market, especially in North America and Europe. There also has been an increase in demand for whole-grain cereals worldwide.
Kellogg’s is the global market leader in breakfast cereals market, while General Mills and PepsiCo are the other key players. The breakfast cereals market is dominated by top three players that control over 50% of the market. Their influence in the global breakfast cereals market is increasing due to established brands, knowledge for innovation and economies of scale. Among other players, Cereal Partners Worldwide (CPW), a joint venture company between General Mills and Nestle, has grown multifold and is expanding at a faster rate.
The report is a study of the global breakfast cereals market, its present and forecast positions. It discusses factors affecting market movements, changing consumer tastes and trends. It also elaborates companies’ planning and strategies for growth, including their investment plans and new product launches.
The report includes a competitive landscape section to map the competitive position of companies based on maturity and growth of the breakfast cereals market in several regions. Company profiles are included at the end of the report. These cover company overview, product and services, financial overview and the latest strategic developments of the company.
The change in breakfast habits and shift towards healthier breakfast alternatives in Asian countries is expected to drive the breakfast cereals market in the region during the forecast period. Rising per capita income and changing lifestyles in Asia are also expected to boost the market share in the region. The market in developed economies tends to saturate mainly due to the search for other traditional breakfast as well as some on-the-go breakfast alternatives such as cereal bars.
The middle class population in China and India according to the World Bank, which was reported to be 430 million in 2010, is expected to reach to 1.2 billion by 2030. The Asian breakfast trend is moving away from the customary local food to the packaged breakfast cereals. The importance of breakfast is increasing being realized globally due to rising health concerns. Some of the benefits of having a regular nutritional breakfast are improvement in memory, balanced cholesterol and insulin levels, physical activeness and low risk of obesity. The practice of skipping breakfast has been reducing and the per capita consumption of breakfast has been increasing globally over the past few years. Cereals are considered to be an ideal breakfast category due to their high nutritional and low calorific value. Breakfast cereals are produced from processed grains. Depending upon the type, they are consumed in hot, cold and dry forms. Kellogg’s introduced the first patented breakfast cereal in the form of cornflakes in 1895. With recognition of its health benefits, cornflakes became one of the main breakfast foods in the U.S. and later on in other parts of North America and Europe.
The market is broadly categorized into two segments: Hot cereals and RTE cereals. Hot cereals are expected to have a higher growth rate as compared to RTE cereals. The major restraint for the industry is manufacturers facing the issue of raw material procurement due to environment-related concerns. This includes the procurement of palm oil, one of the basic ingredients used in the processing of breakfast cereals. While increasing numbers of convenience stores in developing economies is accelerating the market, rising commodity and energy prices are emerging as key concerns. Consumers as well as governments are getting serious on the gluten content in cereals, compelling companies to increase their gluten-free range. The shift in consumer trend towards various alternatives, such as fruits, toasts and eggs and time saver snacks such as cereal bars, is emerging as yet another restraint for the industry.
North America was the global leader in the breakfast cereals market in 2012 which is expected to retain its leadership through 2019. However, it is expected to lose its share to Asia Pacific which is growing a fast pace.