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The breakfast cereals market has undergone significant trends in recent years, reflecting changing consumer preferences and lifestyles. One notable trend is the increasing demand for healthier and more diverse cereal options. As health consciousness becomes a prominent factor in food choices, consumers are seeking breakfast cereals that offer nutritional benefits, including whole grains, fiber, and reduced sugar content. This has led to a surge in the availability of cereals with added vitamins, minerals, and natural ingredients, catering to those who prioritize a balanced and nutritious start to their day.
Moreover, the breakfast cereals market has witnessed a shift towards convenience and on-the-go options. With busy lifestyles and hectic mornings, consumers are looking for breakfast solutions that are quick, portable, and require minimal preparation. This trend has fueled the popularity of single-serve and portable cereal packaging, as well as the introduction of cereal bars and on-the-go cereal cups. Manufacturers are capitalizing on the demand for convenience, offering consumers a variety of choices that align with their fast-paced lifestyles.
Another prominent trend is the emphasis on product transparency and clean labels. In response to heightened consumer awareness of ingredient quality and sourcing, breakfast cereal brands are focusing on clean and simple ingredient lists. Labels that highlight the absence of artificial flavors, colors, and preservatives resonate well with health-conscious consumers who are increasingly scrutinizing product labels. This trend reflects a broader shift in consumer preferences towards more transparent and natural food options.
The breakfast cereals market has also experienced innovation in flavors and product formulations. While traditional flavors like honey, nuts, and berries remain popular, manufacturers are introducing unconventional and exotic flavor profiles to captivate consumers' taste buds. This trend aligns with the growing culinary adventurousness of consumers, especially among younger demographics, who seek unique and novel experiences even in their breakfast choices.
Furthermore, the market has seen an increased focus on sustainability and eco-friendly packaging. As environmental concerns gain prominence, consumers are gravitating towards brands that prioritize sustainability in their production processes and packaging materials. Breakfast cereal brands are exploring options such as recyclable packaging, reduced plastic use, and partnerships with sustainable sourcing initiatives. This commitment to environmental responsibility has become a significant factor influencing consumer purchasing decisions.
The digital landscape has played a pivotal role in shaping the breakfast cereals market, with social media and online platforms serving as influential marketing channels. Brands utilize these platforms to engage with consumers, share recipes, and showcase the versatility of their products. Digital marketing has become a key tool for creating brand awareness, especially among younger consumers who are active on social media and seek information and inspiration online.
Breakfast Cereals Market Size was valued at USD 104.2 billion in 2023. The breakfast cereals industry is projected to grow from USD 112.11 Billion in 2024 to USD 187.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.62% during the forecast period (2024 - 2032). Increased nutritional value and the ongoing introduction of novel and flavorful cereals have led to the growth and expansion of packaged cereals is the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising popularity of breakfast cereals is driving the market CAGR for breakfast cereals. The population's hectic schedules have increased the appeal of ready-to-eat items since they are convenient, quick, economical, and accessible, which is good news for the breakfast cereal market. Even with tight schedules, people today do not want to compromise on product quality and choose healthier options. Breakfast cereals are high in fibre and contain proteins, carbohydrates, vitamins, minerals, and other nutrients. They are satiating, nutritious, lower disease risk, promote bodily health, increase metabolism, and provide daily energy. Breakfast cereals can also help with bone and nerve health. The increased awareness of the benefits of breakfast cereals will help to propel the market forward. Furthermore, morning cereal types are getting healthier, with minimal to no sugar or added preservatives or sweeteners, reduced sodium levels, organic, vegan, gluten-free, and nutrient-rich. They are also available in a variety of shapes and flavours. These attributes will provide additional impetus to market expansion as the health-conscious target population gravitates toward these items.
According to the USDA, morning cereal sales in India increased by 60%. Furthermore, according to the APEDA, morning cereal sales will increase in the United States, Canada, and the United Kingdom in 2021. Despite having only 6% of the world's population, these regions accounted for 54% of breakfast cereal consumption. As a result, the breakfast cereal market is being driven by a rise in demand for healthy and nutritious food.
Rising chronic disease is driving the market CAGR for Breakfast Cereals. Breakfast cereals are mostly breakfast foods made up of cereal grains and ingredients including wheat, barley, oats, millets, and others. Cereal goods were previously limited to just Western countries, but the cereal breakfast market is increasingly expanding in other regions as well, owing to the growing number of diet or health-conscious consumers worldwide. Rising chronic illness rates are expected to fuel demand for low-calorie and healthy breakfast options, boosting the worldwide breakfast cereals market revenue over the forecast period.
The breakfast cereals market segmentation, based on source includes wheat, rice, corn, barley and others. Corn segments have a significant market share. Corn flakes, often known as cornflakes, are a type of breakfast cereal prepared from toasted corn (maize) flakes. Maize flakes are a commercial cereal made of small, toasted flakes of maize that are often served cold with milk and occasionally sugar. The plain flakes have been flavoured with salt, sugar, and malt since their initial creation, and several subsequent versions with extra ingredients, such as sugar frosted flakes and honey & nut corn flakes, have been developed.
The breakfast cereals market segmentation, based on packaging includes boxes, pouches and others. The boxes category held a large portion of the market. The box is constructed from a flat piece of cardboard that has been previously printed with the design you want to appear on the box's outside. The box's bottom and sides are joined by a potent glue. The plastic bag is made from moisture-proof material and placed inside the box.
The breakfast cereals market segmentation, based on distribution channel, includes store-based and non-store based. Store-based category are subdivided into supermarket/hypermarket, convenience shop, and others in 2021. Supermarkets and hypermarkets dominated the market, accounting for approximately 69% of total revenue. Supermarkets/hypermarkets are convenient places to buy everyday necessities. They are large and have stores that carry every high-quality brand. Because of their broad retail chains, they are extensively distributed and are expanding into tier 1 and tier 2 cities, making them more accessible to consumers. Supermarkets/hypermarkets dominate the market of breakfast cereals due to its convenience, variety, price, and accessibility.
Figure1: Breakfast Cereals Market, by Distribution channel, 2022&2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. During the forecast period 2022-2032, Asia Pacific will dominate the Breakfast Cereal market. In 2022, Asia Pacific had the biggest market share of 51.3%. Increased population in this region, combined with rising middle-class spending power, is expected to drive expansion in the worldwide breakfast cereals market.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: BREAKFAST CEREALS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe breakfast cereals market accounts for the second-largest market share due to the surging intake of ready-to-eat breakfast cereals. Further, the German breakfast cereals industry held the largest market share, and the UK breakfast cereals was the fastest-growing market in the European region.
The North America Breakfast Cereals Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to a shift in customer preferences toward low-sugar alternatives such yogurt, egg muffins, and protein smoothies. Moreover, China’s market of breakfast cereals held the largest market share, and the Indian breakfast cereals industry was the fastest- growing market in the North American region.
Leading market players are investing heavily in R&D to expand their product lines, which will help the breakfast cereals market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the breakfast cerealsindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the breakfast cereals industry to benefit clients and increase the market sector. In recent years, the breakfast cereals industry has offered some of the most significant advantages to medicine. Major players in the breakfast cereals market, including Nestlé (Switzerland), Weetabix Limited (UK), The Jordans & Ryvita Company (UK), TreeHouse Foods Ind. (US), Nature's Path Foods (Canada) and others, are attempting to increase market demand by investing in R&D operations.
Nestlé S.A. is a Swiss multinational food and beverage industry firm based in Vevey, Vaud, Switzerland. Since 2014, it has become the world's largest publicly traded food firm in terms of revenue and other measures. It was placed No. 64 on the Fortune 500 in 2017 and No. 33 on the Forbes 2000 list of the world's largest public corporations in 2016. Nestlé's products include baby food (some of which contain oligosaccharides derived from human milk), medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet meals, and snacks. Nestlé's brands with annual sales of over 1 billion CHF (about US$1.1 billion) include Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. In October 2021, Nestlé Cereals, the international food giant's UK division, has introduced Cheerios Vanilla O's, a low-sugar cereal with no artificial colours or flavours. Whole grains are the key ingredient in the new cereal, which is classified as non-HFSS (high in fat, salt, or sugar) under new UK government standards. Cheerios Vanilla O's, fortified with vitamins and minerals, contains less than 5% sugar without sacrificing flavour and is dedicated to giving consumers with a healthy, delectable breakfast experience.
The Kellogg firm, also known as Kellogg's, is an American food manufacturing firm based in Battle Creek, Michigan. Kellogg's manufactures cereal and convenience foods such as crackers and toaster pastries and sells them under various well-known brand names such as Corn Flakes, Rice Krispies, Frosted Flakes, Pringles, Eggo, and Cheez-It. "Nourishing families so they can flourish and thrive," says Kellogg's mission statement. Kellogg's goods are produced and sold in over 180 countries. Kellogg's largest factory is located in Trafford, Greater Manchester, United Kingdom, where it also has its UK headquarters.Outside of Battle Creek, corporate offices can be found in Chicago, Dublin (European Headquarters), Shanghai, and Querétaro City. Queen Elizabeth II granted Kellogg's a Royal Warrant until her death in 2022. In April 2021, Kellogg expanded its product portfolio in India to include more Indianised products that are suited to local palates.
Breakfast Cereals Industry Developments
September 2022, PepsiCo India was resolved to make inroads into the ready-to-eat cereals category with the release of Quaker Oats Muesli. This comes at a time when the whole Breakfast Cereals category and muesli sector are witnessing volume growth.
June 2022, Nestlé Cereals has announced the launch of the Nestlé Wheat Plan. Numerous farmers in the United Kingdom are already involved in the Nestlé Wheat Plan. In the next years, there are plans to significantly increase this amount.
In September 2021, Parle, one of India's major manufacturers of biscuits, snacks, and sweets, has announced its foray into the breakfast cereal category. According to a statement from Parle Products, the company has expanded its popular brand 'Hide & Seek' into the cereals area.
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