Breakfast Cereal Market size is projected to grow at a 7.6% CAGR from 2022 to 2030, reaching USD 182.5 Billion
A good Breakfast Cereals Market analysis reveals certain key insights and trends. The size of the Global Breakfast Cereal Market, which was estimated at USD 91.7 billion in 2021, is anticipated to increase at a compound annual growth rate (CAGR) of 7.6% from 2022 to 2030 to reach 182.5 billion. Breakfast cereals have long been considered vital and staple food to consume mainly because of their high nutritional value and content. Most breakfast cereals have essential vitamins, minerals, and other nutrients added to them while being processed. These include fiber, iron, vitamin D, zinc, vitamin B, and calcium.
Breakfast cereals are highly valued by society because they are the first energy source most people have after they wake up in the morning. Indeed, it’s the energy and other nutrients from breakfast cereals that power and energizes people and helps them function until lunchtime.
COVID-19 Analysis of Breakfast Cereals Market
COVID-19 was a novel virus that made its grand appearance during the spring of last year. The fact that it made many people around the world deathly ill and even caused some deaths signified to governments around the world that this was not a virus that was to be taken lightly.
Governments around the world responded by imposing national lockdowns and quarantines. Many businesses in many markets were forced to either halt operations completely or dramatically slow operations down at least temporarily. The result was disastrous for many markets. The breakfast cereals market was no exception. Many manufacturers found it difficult to source the raw materials needed to make many breakfast cereals. This resulted in a dramatic decrease in the supply of these cereals for the end consumer and even raised the retail price for them.
There are many factors that are driving growth in the breakfast cereals market. The main one is that people around the world are leading busier and busier lives. They don’t have the time to make big breakfasts. The other major factor that is driving growth is the fact that people are much better educated than their parents were. Therefore, they understand the importance of eating healthily in the morning. They are looking for a food that is easy to make and is a good source of nutrition. Breakfast cereals meet these two criteria.
Many manufacturers in the breakfast cereals market are seeing the potential lucrativeness of the market. They are seeing that most health-conscious consumers will gladly pay much more for cereals that have been fortified with nutrients. These manufacturers are responding by investing heavily in research and development. They are trying to make a new generation of healthier breakfast cereals. This has two consequences. It provides people with more energy and nutrition in the morning, and it allows the manufacturers to justify charging more for their finished goods.
There are some factors that are restricting breakfast cereals market growth. One is the fact that it’s still popular and customary for people who live in developing nations to consume traditional foods in the morning like congee or idli and sambhar.
Breakfast cereals manufacturers face a major challenge. That lies in producing better and more nutritious products with a longer shelf life that will still be reasonably affordable for the end consumer.
B&G Foods, Inc. is a major American player. It has managed to increase its profile in the breakfast cereals industry by investing heavily in research and development. Its hard work is paying off because it has formulated a new generation of breakfast cereals that last much longer and are much more nutritious than most breakfast cereals were even five years ago!
One such example is Cream of Wheat. This is a popular hot cereal that is more than one hundred years old. Thanks to recent advances in technology B&G Foods Inc has been able to make brands that are so nutritious that they are good to give to young infants and kids. Also, it is manufacturing various versions of these brands. These range from the traditional stove top cereals to ones that come in packets and even cups.
The breakfast cereals market can be classified into the following based on source:
The breakfast cereals market can be classified into the following based on packaging:
By Distribution Channel
The breakfast cereals market can be classified into the following based on distribution channel:
The first type of distribution channel can be segmented further into the following categories:
Most breakfast cereals are sold in supermarkets
The breakfast cereals market can be divided into the following regions:
The breakfast cereals market share is highest in the Noth American region. This region consists of The United States of America, Canada, and Mexico. The main reason for the higher regional market share is that most people in The United States of America and Canada consume either breakfast cereals or meal replacers like Jimmy Dean’s sausage muffins. These fall into the breakfast cereals category.
The people in the North American region are healthier in general because they eat more breakfast cereals. Research has shown that the nutrients in breakfast cereals strengthen the immune system. It also helps young people focus better because they get a nutritional and energy boost every morning.
The breakfast cereals market in the European Union can be further broken down into the United Kingdom, Germany, France, Italy, Spain, and the rest of Europe. The breakfast cereals industry growth is expected to be high in the European Union mainly because most Europeans are adopting healthier lifestyles and diets. They are also much busier than their parents were and need to eat food while on the go. This breakfast cereals market trend is expected to continue for at least the next few years.
The Asia-Pacific region will have the biggest breakfast cereals market growth of all of the regions in the world. What is causing this is the fact that the growing middle classes are increasingly acquiring Western tastes. This is especially true of the foods that they consume in the morning. They are also interested in eating healthier. This can be especially said of the middle classes in Asia’s two economic heavyweights - India and China!
The population in the Asia-Pacific region is growing exponentially as well. This is the case in India and China.
People around the world are gradually becoming wealthier and more health-conscious. They are increasingly preferring to consume healthy foods for breakfast. This breakfast cereal market trend is expected to be the norm and drives substantial growth in the rest of the world.
The breakfast cereals market is very competitive. This is mainly attributed to the fact that there is a respectable CAGR in the market. It is also attributed to the fact that the market is very lucrative given the growing number of people around the world who want to eat healthily in the morning.
When companies invest in research and development, they are able to develop the technologies that will allow them to come up with safer and more nutritious foods that will last longer on shelves in various marketplaces.
Companies that enter into joint ventures increase their overall resource pools. It allows them to do better research and development easier and it also puts them in a position to enter into new markets easier. They also have the ability to consolidate their positions in existing markets.
Companies that enter into mergers and acquisitions are in the same position as companies that enter into joint ventures.
One major company in the breakfast cereals market is Kellogg Co. It is a major American company. It has managed to retain its superior position in the global breakfast cereals market by investing heavily in research and development. This has allowed it to successfully develop and market a new generation of more nutritious breakfast cereals that will sell better. One such example is the fortified Special K breakfast cereal.
|Market Size||USD 182.5 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Source, By Packaging Type, By Distribution Channel and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Kellogg Co. (US), General Mills Inc. (US), Post Holdings Inc. (US), PepsiCo (US), Nestlé (Switzerland), Weetabix Limited (UK), The Jordans & Ryvita Company (UK), TreeHouse Foods Inc. (US), Nature's Path Foods (Canada)|
|Key Market Opportunities||most health-conscious consumers will gladly pay much more for cereals that have been fortified with nutrients|
|Key Market Drivers||people around the world are leading busier and busier lives|
Changing lifestyle & dietary pattern, rising preference for convenience food, and increasing purchasing power of consumers, are major tailwinds pushing the growth of the global breakfast cereals market.
The presence of low-cost and counterfeit similar products is a key growth impeder of the global breakfast cereals market.
North America holds the largest share in the global breakfast cereals market, followed by Europe and the Asia Pacific, respectively.
Kellogg Co. (U.S.), Nature’s Path (Canada), General Mills (U.S.), TreeHouse Foods (U.S.), Post Holdings Inc. (U.S.), The Jordans & Ryvita Company (UK), PepsiCo. (U.S.), Weetabix Ltd. (U.K.), and Cereal Partners Worldwide (CPW) (Switzerland), are some of the top players operating in the global breakfast cereals market.
Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global breakfast cereals market adopt to gain a larger competitive advantage.