Global Breakfast Cereals Market Research Report: Forecast (2023-2028)

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 & Analysis: Global Breakfast Cereals Market (2023-28)

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.

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.

Global Breakfast Cereals Market Key Trend:

A Sudden Shift to Healthier Ready-To-Eat Food Options - 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.

Global Breakfast Cereals Market (2023-28): Segmentation Analysis

The Global Breakfast Cereals Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Product Type, and Distribution Channel the market has been further classified as:

Based on Product Type,

• Hot Cereals
• Ready to Eat

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,

• Supermarkets & Hypermarkets
• Retail stores
• Convenience stores
• E-commerce
• Others

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.

Global Breakfast Cereals Market Regional Projection

Geographically, the Global Breakfast Cereals Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

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 December 2022, Kellogg’s, for the first time in 40 years, reformulated its Crunchy Nut cereal recipe to launch a brand new salted caramel flavor for the first time in 40 years.

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,

• In 2021, General Mills launched a series of instant oatmeal cereals, owing to the high nutrition requirement of consumers.

Regulatory Landscape in the Global Breakfast Cereals Market

• Indian Food Authority, FSSAI, has notified the Food Safety and Standards (Labelling and Display) First Amendment Regulations, 2022, covering the norms related to nutritional information and the shelf life of edible products.
• Under the Food Safety and Standards (Food Products Standard and Food Additives) First Amendment Regulations (2021) published in the Gazette of India on March 4, 2021, cereal-based products have received regulations with an implementation date of January 1, 2022.

Global Breakfast Cereals Industry Recent Developments 

• In October 2022, General Mills, Inc revealed its plan to introduce Rudolph Cereal alongside the return of two fan-favorite flavors, named Sugar Cookie Toast Crunch Cereal and Apple Pie Toast Crunch Cereal.
• In October 2022, Kellogg India, a leading breakfast cereal manufacturer, introduced Kellogg's Pro Muesli, a high protein muesli. Being the company's recent innovation, this one is 100% plant-based and intended for nutrition-seeking and time-pressed consumers.
• In August 2021, Kellogg India introduced Froot loops, a multigrain cereal, expanding the breakfast cereals range. The company has also launched region-specific products to accelerate the proliferation of its products in the growing Indian market.

Global Breakfast Cereals Market 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.

Global Breakfast Cereals Market 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.

Global Breakfast Cereals Market Growth Opportunity:

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.

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