Breakfast Cereals Market Undergoing Massive Shift in Trends

Breakfast cereals have been a part of the conventional diet for decades now. However, their significance and demand have grown over the years, especially in developing countries. Let’s take a look at the various regional markets and the factors that govern them.

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Industry Leader to Witness Fall in Market Share

North America leads the global breakfast cereals market. However, experts believe that the U.S. market is on the path of decline. These are the dominant trends in the U.S. breakfast cereal market:

  • Shift from breakfast cereals to other breakfast alternatives such as snack bars, Greek yogurt, and breakfast sandwiches

  • Increased focus on high nutritional content of breakfast cereals

  • Unconventional and liquid meals such as Carnation Instant Breakfast making a comeback, reducing demand for breakfast cereals

  • Kellogg Co dominates North American breakfast cereals market in terms of value share

  • Retail value sales of breakfast cereals expected to drop gradually

  • Innovation in children’s breakfast cereals holds scope for growth

  • Products focusing on overall health instead of weight management witnessing more demand

  • Gluten-free, organic breakfast cereals gaining popularity

Surging Demand from Asia Pacific to Drive Regional Segment

The Asia Pacific market for breakfast cereals is witnessing a dramatic rise in demand owing to increasing prevalence of the modern, hectic lifestyle and shift towards healthier breakfast alternatives. Rise in disposable income and availability of international brands have also boosted the market for breakfast cereals. Here are some of the trends governing the China and India markets:

India

  • Urban population forms the primary consumer base for breakfast cereals

  • Demanding schedules and increase in working women have led to demand for quick breakfast arrangements

  • Cornflakes most popular breakfast cereal

  • Kellogg India Ltd. maintains leadership since it was the first breakfast cereal brand to be introduced in India

  • Introduction of muesli to drive this market and its availability and retail distribution to strengthen over the years

  • Northeast India continues to remain a weak link owing to greater preference for home-cooked breakfast

China

  • Increasingly strenuous lifestyle and growing health awareness driving the breakfast cereals market in the region

  • Consumers demand convenient, dry, and healthy breakfast alternatives in place of traditional choices such as noodles, rice, baozi, or other baked products

  • Guilin Sea Mild Biology Technology Development dominates the China breakfast cereals market in terms of value share

  • Mid-priced hot cereals have a wide consumer base in the region

  • Leading companies focusing on customized target groups such as the elderly, women, athletes, and diabetics

Healthy Living Campaigns Boost Latin American Market

The saturating breakfast cereals market in developed countries is being largely compensated by emerging markets in Latin America. Countries such as Brazil, Chile, and Mexico are witnessing increasing demand for breakfast cereals for a host of reasons.

Brazil

  • Growing health awareness and convenience of breakfast cereals driving this regional market

  • Concerns over sugar and sodium content in ready-to-eat breakfast cereals may restrict demand

  • Nestle Brasil Ltda and Kellogg Brasil & Cia lead the regional segment

  • Diversification of flavor and format of products is a key strategy adopted by manufacturers

  • Retail value sales to rise in coming years

Chile

  • Government’s healthy living campaign major growth driver

  • Increasing health consciousness of consumers boosting demand for high-nutrient breakfast cereals

  • Growing focus on effective advertizing and marketing of products

  • Rising sophistication of consumers and increased exposure to international health trends a key factor driving demand for breakfast cereals

  • Manufacturers emphasizing on innovation and product development

  • Nestle Chile SA most popular player in the breakfast cereals market

Mexico

Even though breakfast cereals in Mexico fall under the Special Tax over Production and Services category owing to their high calorie content, cereal manufacturers in the region are presented with the opportunity to counteract the negative perception and launch low-sugar and high-fiber versions of the products. Kellogg de Mexico dominated the regional breakfast cereals market.

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