Breakfast Cereals Market

SKU: DMFB1798 | Last Updated On: Aug 03 2022 | Available Formats

> Breakfast Cereals Market Expected to reach a high CAGR of 5% By 2029: DataM Intelligence.

Breakfast Cereals Market is segmented By Product Type (Flakes, Bars, Fillows, Granola, Others), By Source (Wheat, Oats, Rice, Corn, Mixed Grain, Others), By Flavor (Non-Flavored, Flavored), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Breakfast Cereals Market Trends Growth Insights Overview:

Breakfast Cereals Market is predicted to reach a high CAGR of 5% during the forecast period (2022-2029). Breakfast cereals are puffed, flaked, shredded, or extruded cereals made from whole grains and are intended for human consumption as ready-to-eat or hot cereals. These processed grains are usually labeled to consume with milk or fruit toppings as the first meal of the day. Corn, wheat, rice, and oats are the most widely used cereals in this process. The global breakfast cereals market was worth $ XX billion in 2020 and is estimated to reach $ XX billion by 2028, growing at a CAGR of XX% during the forecast period.

The fast-paced lifestyles across the globe have been forcing traditional breakfast foods such as porridges, buns, and bread to get replaced by convenient, processed foods. On-the-go breakfast cereals evolved as healthy alternatives owing to their nutritional benefits and convenience. These products are rich in fiber and nutrients and contain very low cholesterol.

Market Dynamics:

Comprehensive evidence towards the role of breakfast cereals in health and nutrition is spurring the market growth

The global breakfast cereals market growth is majorly driven by the need for nutritious food as breakfast to help fuel physical and mental health. Rising risk of diseases such as Diabetes, Obesity, and cardiac issues owing to sedentary lifestyles is motivating people towards consumption of low-calorie food, thereby boosting the demand for breakfast cereals. A porridge made of whole grains contains zero cholesterol, thus making it an ideal food for heart health. Furthermore, the growing cereal production across the world is also supporting the growth of the breakfast cereals market. According to OECD-FAO Agricultural Outlook 2018-2027, global cereal production is likely to grow by 13% between 2018 and 2027. The consumption of cereals is projected to witness 14% growth over the same period to reach 2.9 billion tons in 2027 and this growth is attributable to human food uses. The development of organic cereals is estimated to provide new growth avenues to the breakfast cereals market over the forecast period. Organic cereals are holding the health-savvy population who would otherwise shift towards alternatives owing to GMO issues of cereals.

The adverse health effects of cereals on human health if consumed heavily is hindering the growth of the Breakfast Cereals Market. Overconsumption of cereals increases the risk of Arthritis. Furthermore, added sugar content of these products is limiting the growth of the market. The manufacturers of breakfast cereals add artificial sweeteners to enhance the consumer's sensory experience. Over intake of sugar may result in type-2 Diabetes and heart disease.

Market Segmentation:

Flakes standing tall in the market, with higher penetration of corn flakes among kids, families, and sportsmen

Flakes are the largest category of breakfast cereals, accounting for nearly XX% of the total sales revenue in 2020. Flakes available on the market include those derived from corn, wheat, and rice. However, corn flakes are the most dominant section owing to the superior nutrition offered. Most of the leading market players including Kellogg’s, Nestle, and General Mills are promoting flakes processed from Corn and Wheat as their key breakfast cereal products. Moreover, companies are focusing on flavored cereal products with high sugar content to gain significant traction among kids. Apple, cranberries, strawberries, and coconut are the major flavors available in the global market. The potential of these flavors to balance the inherent taste of cereal bases is enhancing the consumer spectrum for flavored breakfast cereals among the adult population.

Geographical Penetration:

The Asia Pacific is challenging the dominance of North America in the global breakfast cereal consumption

North America is dominating the global breakfast cereals market, with a share of 35% in 2020 owing to the early adoption of cereals as breakfast in the United States. The nutritional benefits of these food products led to their robust penetration among the population. However, the per-capita consumption of breakfast cereals is declining in the region owing to consumer shift towards low-sugar substitutes such as yogurt, egg muffins, and protein smoothies. Also, the superior convenience that these substitutes offer is leading to a shift away from cereals

Asia Pacific region evolved as the fastest growing market for breakfast cereals owing to shifting consumer preferences towards processed nutrition food. Macro factors such as rising disposable income, growing retail market, and urbanization accounted for this shift. Many startup companies have recently entered the market with innovative product formulations and are boosting sales significantly. The region is likely to surpass North America in terms of market value share in the market.

COVID-19 Impact:

Pandemic had a positive impact on the global breakfast cereals market

The outbreak of novel coronavirus has had a limited impact on the sales of breakfast cereals in 2020. Demand from consumers for nutritious, processed food witnessed growth owing to increasing concern of consumers towards health. The sales of breakfast cereals also increased during the pandemic, owing to rising in-home consumption. The convenience offered by these food products is gaining a new customer base among the time-pressed population. Also, COVID-19 is likely to pose a long-term positive impact on the market as the interest in nutrition diet is significantly increased during the pandemic.

Breakfast Cereals Market Scope

Metrics

Details

Market CAGR

5%

Segments Covered

By Product Type, By Source, By Flavor, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

Competitive Landscape:

The dominance of a few players made the market consolidated. Focus is laid towards flavored products

The breakfast cereals market is highly competitive with new players entering the market.  Some of the major players include The Kellogg Company, General Mills, Inc., Nestlé S.A., PepsiCo, Inc., and Clif Bar & Company. The key players are adopting various key strategies such as product launches, collaborations, mergers & acquisitions which are contributing to the market globally. Developing countries in Asia and Africa are witnessing a large number of organic and inorganic growth strategies. For instance, the USD 300 million markets for breakfast cereals in India is poising a growth CAGR of over 13%. The market witnessed a large number of product launches, acquisitions, and market entry of FMCG giants in recent years

  • In August 2021, Kellogg's India expanded its breakfast cereal portfolio in the country by the launch of its globally renowned brand - Froot Loops cereals. This move is likely to help the company is holding its market leader position
  • Tata Consumer Products acquired Kottaram Agro Foods, a processed food company involved in healthy breakfast cereals under the brand Soulfull in February 2021
  • Nestle launched NESPLUS, a range of breakfast cereals including wholegrain and multigrain breakfast options in July 2018

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