Market Definition
Breakfast Cereals, or simply cereals, are healthy and nutritious food prepared from grains or multi-grains such as quinoa, corn, wheat, and others without added sugar, and are popularly consumed as the first meal. It includes cornflakes, muesli, oats, and other grain-based products, enriched with various nutrients, such as proteins, carbohydrates, vitamins, and dietary fibers. On top of it, it is eaten conveniently with milk, yogurt, and fruits per personal preference. In fact, porridge made with oats is one of the go-to healthy breakfasts among consumers as it is a light and healthy option when in sickness.
Market Insights
The Global Breakfast Cereals Market is projected to grow at a CAGR of around 5.2% during the forecast period, i.e., 2023-28. Most of the market expansion attributes to a fast-paced lifestyle, especially of the young and working populace, that has given a run to the concept of breakfast cereals in the past few years. With the arrival of multiple options and choices of ready-to-eat products without cooking, cereals have gained a dedicated following amongst busy office-goers. Cereals are conveniently available to consumers through various distribution channels like supermarkets and departmental stores. The easy availability and access also, in turn, contribute to the growth of the breakfast cereals industry. Moreover, the concept of at-home breakfast got popularized within and after COVID-19 lockdowns. Given this, cereals were highly endorsed, for their health advantages, like being oats-based and containing high-fiber content, thus instigating their adoption worldwide.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 5.2% |
| Regions Covered | North America |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle East & Africa | |
| Key Companies Profiled | Alara Whole Foods Ltd., Attune Foods LLC, B&G Foods Inc., Bagrrys India Ltd., Bobs Red Mill Natural Foods Inc., General Mills, Inc., Kellogg Company, Marico Limited, Nature's Path Foods., Nestlé S.A., Pepsico, Inc, Others. |
| Unit Denominations | USD Million/Billion |
Further, various developing regions are experiencing a rising demand for breakfast cereals as urbanization continues with a growing middle-class population, a surge in the number of working women, and a rise in disposable income and spending habits. Other than this, the ongoing development and growth of retail infrastructure like supermarkets have a crucial role in endorsing cereals on a larger scale. Besides, the emerging concept of grocery at the doorstep, stemming from the ever-growing e-commerce sector, has led to easier accessibility to cereals. On top of it, the easy preparation has made consumers choose cereals as breakfast instead of other options that require time and energy to prepare. Also, as awareness for a healthier lifestyle intensifies, these nutritious alternatives are emerging as better alternatives over traditional breakfasts. These aspects are likely to encourage market expansion in the long run.
Key Trends in the Market
Consumer's food habits are getting altered by the fast-paced lifestyle. Ready-to-eat packaged food items have gained traction given their time-saving factor and long shelf life. Longer shelf life provides the consumer with a safety net of time. Packaged food items do more harm than good to the body if consumed regularly, but cereals offer an alternative to solve hunger within minutes while also providing nutrients. Since breakfast cereals are emerging as a healthy breakfast option, the market would benefit from the trend of living a healthy and sustainable lifestyle.
Market Segmentation
Based on Product Type,
Here, Hot Cereals grabbed the largest market share in the historical period. The growth is attributed to the increasing adoption of nutritious breakfast options, as it incites the demand for multi-grain cereals. Thus, FMCGs keep concocting products with intrinsic flavors catering to the longing for something innovative. Other than this, the increased prevalence of hot breakfasts in Asian countries led to hot cereals like oats and muesli gaining more popularity. What further elevates the inclination is the blend of innovative flavors with nutritious ingredients in the product.
Based on Distribution Channel,
Among the above segments, E-commerce is anticipated to dominate the Breakfast Cereals Market in the forecast period. The rise of e-commerce predominantly attributes to the increasing adoption of smartphones and the internet. Along with this, e-commerce provides almost all possible choices, lucrative discounts, and hassle-free experiences. The intensifying digitalization resulting in online shopping habits has facilitated effortless and fast delivery of products in the historical period, thereby encouraging industry expansion in the forthcoming years.
Regional Projection
Geographically, the Global Breakfast Cereals Market expands across:
On the geographical front, Asia-Pacific is anticipated to experience substantial growth in the breakfast cereal market. There has been a continuous and promising rise in the consumption of processed food products in countries such as India, China, South Korea, and others. This exhaustive inclination would drive the market growth of cereals which corporations cater to by providing plenty of choices and flavors. Asian countries like India and China, due to their exploding population, will represent the highest growth potential across the region. For instance,
In addition, the change in food habits at the elementary level has called for more nutritious food with high fiber and protein content. As a result, consumers these days gravitate more towards nutritional food products, including breakfast cereals leading to exponentially augmented demand. For instance,
Regulatory Landscape in the Global Breakfast Cereals Market
Recent Developments in the Global Breakfast Cereals Market
Market Dynamics
Key Driver: The Growing Propensity for Easy-To-Store Packaged Cereals
Consumer preference has started to lean towards packaged, healthy food over traditional breakfast options, which has led to the popularity of easy-to-store packaged cereals. Since cereal contains various nutrients, including fiber and low calorific value, it is considered an ideal breakfast option. Moreover, the advancement of food retail and rising awareness of the health benefits of eating grain-based cereals would further push the market forward.
Possible Restraint: The Extensive Presence of Alternatives to Breakfast Cereals
The ever-increasing breakfast alternatives, such as packed sandwiches, readymade breakfasts, and traditional variants, are expected to impede the growth of the cereals industry. Although cereal is vastly popular in developed countries, in developing countries, it could face challenges due to the lack of a standardized supply chain among vendors and distributors, further hampering the demand-supply chain.
Growth Opportunities: Continuous Value Propositions in The Health and Wellness Category
There has been a trend of adopting healthier lifestyles and changes, which varies from person to person. Companies propagating the idea of cereals as a healthier food option, have successfully aided in raising awareness of cereals as a breakfast option. Along with being a healthy option, cereals are being presented as a time-saving alternative, which poses an opportunity to insert cereals into the households of busy members, be they office-goers or college students.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Breakfast Cereals Market is projected to grow at a CAGR of around 5.2% during 2023-28.
A. The growing propensity for easy-to-store packaged cereals is expected to drive the Breakfast Cereals Market during 2023-28.
A. The leading players in the market are Alara Whole Foods Ltd., Attune Foods LLC, B&G Foods Inc., Bagrrys India Ltd., Bobs Red Mill Natural Foods Inc., General Mills, Inc., Kellogg Company, Marico Limited, Nature's Path Foods., Nestlé S.A., Pepsico, Inc, Others.
A. Hot Cereals is anticipated to emerge as an area of remunerative opportunities for the leading players in the Breakfast Cereals Market during the forecast period.
A. Globally, Asia-Pacific would provide lucrative prospects for the Breakfast Cereals Market in the years ahead.
A. A sudden shift to healthier ready-to-eat food options is the key trend shaping the growth of the Breakfast Cereals Market during 2023-28.
A. Continuous value propositions in the health and wellness category would provide lucrative prospects for the Breakfast Cereals Market in the years ahead.
