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Breakfast Cereals Market Size, Industry Analysis Report, Regional Outlook

Author: Manik Pawar
by Manik Pawar
Posted: Oct 07, 2017

The Breakfast Cereals Market size will witness notable gains in the forecast period with increasing consumer consciousness regarding health benefits of the product and increasing desire for low calories diet. The product has prominence in infant food industry owing to enhance nutrition value and ease in preparation. Influence of western culture on dietary patterns and changing foods habits of consumers is driving breakfast cereals market.

Severe change in eating habits has been observed in last 20 years that has curbed consumption of dairy goods and switch to protein based diet. Major difference was witnessed among younger demographic. The generation looks for convenient energy rich food that save time. Increasing rate of women empowerment and long working hours has fueled goods demand.

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Growth in infant food industry by 6% CAGR is anticipated to surge breakfast cereals market. Rising awareness among parents for healthy and convenient baby food has elevated the product usage.

Supply chain of breakfast cereals market begins from agricultural fields, grains are transported from framers to storage facility. It is then transported to cereal plant and grains are processed and mixed with other ingredients such as sugar, nuts and dried fruit. It is assembled and distributed to wholesalers, further the cereals are made available for the consumers in retail stores.

High raw material procurement cost has adversely affected production of the product. Basic ingredient used to produce cereal is palm oil. Increasing cost of oil will make it difficult to produce finish goods. Other challenges such as alternatives of the product including fruits, yogurt and eggs, high percentage of sugar, salt and saturated fats can lead to decline in its consumption.

Uncontrolled cereal intake can cause arthritis. Further, prices of the good will subsequently rise in next 13 years due to global warming. The effect of climate on basic crops such as wheat, corn and rice will pose a threat in the growth of breakfast cereals market.

Breakfast cereals market is categorized by its product in ready to eat and hot cereals. Global consumption of ready to eat cereal is estimated over 80% due to hectic lifestyle of consumers. The product has different ingredients that includes wheat, rice, barley and corn. The industry mainly focuses on children with highly animated commercials. Increasing awareness for healthy food coupled with busy lifestyle, adults are boosting breakfast cereals market.

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North America will witness significant growth in breakfast cereals market, U.S being pioneer in the field. Low calories diet, hectic lifestyle, public health concerns, increasing consumer demand for healthier cereal and diet related chronic disease, including cardiovascular disease are prevalent in the country. To overcome these factors, consumers are shifting to healthy diet plan thus rising growth.

Asia Pacific is the fastest growing breakfast cereals market, increase in population, rapid adoption of western lifestyle, growing retail infrastructure, extensive promotional and brand advertising are factors contributing in demand. Chinese cereal industry is growing with the eating habits of middle class consumers such as fondness for dairy products, often associated with cereal consumption. The product sales is growing over 13% a year.

Europe is major consumer of the cereals. Ease in preparation, high amount of sugar in the item for energy and convenience is driving demand for breakfast cereals market in the continent.

Key contributors of breakfast cereals market are general mills, Kellogg, Nestle, PepsiCo, Coca Cola Co., Attune foods, Bob’s Red Mill Natural Foods and Sanitarium Health. These players constitute over 50% of the total revenue. Brand loyalty, innovation and economies of scale are helping the companies to develop their core competencies. Initiatives are taken by major participants that includes strategic alliances and joint venture. Cereal Partner Worldwide is a 50-50 partnership between General Mills and Nestle. The joint venture is to produce and sell ready to eat cereal. Kellogg acquired an Egypt based company Mass Food Group to expand its business in Africa and Egypt.

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Author: Manik Pawar

Manik Pawar

Member since: Jul 04, 2017
Published articles: 75

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