The breakfast cereals market is expected to grow at a CAGR of 3.73% over the forecast period to reach a total market size of US$32.445 billion by 2025, increasing from US$26.045 billion in 2019.Breakfast cereals are breakfast foods that are made from processed cereal grains, primarily in Western societies. Changing food habits coupled with the rising western influence in the Asia Pacific region is expected to drive the growth of the market during the forecast period. Growing consumer awareness regarding the health benefits of grain based breakfast is also augmenting the growth of the market. However, the availability of a substitute in the form of a traditional form of breakfast is anticipated to hinder the growth of the market in the coming years.
Expanding retailing business like convenience stores
Over the past few years, convenience and departmental stores with supermarkets have witnessed an increase in sales. Established on the evolution of continence and other retail businesses in various parts of the world, the development and growth of convenience stores is directly related to economic growth and speed of urbanization. However, due to various factors such as unbalanced industry and regional economic development in various parts of the world, most of the convenience stores have limited their operation to developing and expanding cities.
Availability of substitute is a form of the traditional form of breakfast is restraining the growth of themarket
There is a presence of substitutes the can be used in place of breakfast cereals depending on the demographic dividend. In addition, the cost of breakfast cereals is relatively higher than the other substitutes, which is attributable to the seasonal harvesting period and the capital intensive process requirement while producing these cereals.
Increasing household expenditure in developing countries
It is considered as one of the prime drivers for the growth of the market during the forecast period. According to the Organisation for Economic Co-operation and Development data, the household spending in China and Brazil has increased from US$5.640 billion and US$1.850 billion in 2012 to nearly US$9.809 billion and US$2.1 billion by the end of 2018. Both and public and private players are investing heavily in the developing countries to cater to the growing demand for the breakfast cereals on account of rapid urbanization and growing health awareness.
North America is holding a significant share in the market
By geography, the breakfast cereals market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is expected to hold a significant share in the market owing to the presence of major players coupled with the growing number of product launches in the countries like the United States and Canada. In the Asia Pacific region, due to changes in breakfast consumption patterns in a couple of years and rising western influence in countries like China and India is the market is expected to witness substantial growth over the forecast period. Besides, growing consumer awareness regarding the health benefits of cereals in the morning coupled with the product development of high fiber and multigrain breakfast cereal has also triggered the market growth opportunities in the region in the coming years. In addition, rising disposable incomes and living standards are encouraging Chinese and Indians to adopt the Western lifestyle. Growing demand for ready-to-make and ready-to-eat breakfast food and beverage products is augmenting the demand for breakfast cereals across the region. Furthermore, the rising number of supermarket chains and grocery stores in Mexico also contribute to the growth of the maple syrup market by making it easily available to the Mexican consumers. According to the National Association of Retailers (ANTAD), there were more than 2,658 store openings out of which 85 percent were specialized stores, 10 percent were supermarkets, and 4 percent were department stores. In 2018, Walmart announced the acquisition of Cornershop, Inc., a leading online marketplace for on-demand delivery from supermarkets and specialty food retailers in Mexico and Chile in order to accelerate its growth in Latin America.
Prominent key market players in the Indian breakfast cereals market include General Mills, Nestle S.A., Attune Foods, Kellogg Company, POST HOLDINGS, INC, and B&G Foods Inc. among others. There is intense competition; different companies are adopting different strategies to improve their margins over the competitors. Big market players look for strategic partnerships including mergers and acquisitions and joint ventures to boost their market share. Also, market players are tapering down their strategies to specific regional markets and are focusing on various country specific breakfast habits to target customer’s base and promoting their brand. In addition, market players are investing heavily in research and development and product launch of innovative, fruit flavored and high fiber breakfast cereals in the market. For instance, in November 2018, Kellogg introduces a new breakfast cereal called HI! Happy Inside that features pre-biotics, pro-biotics, and fiber. It contains nearly 1 billion live probiotics from active strains, 2.5 grams of prebiotics and 8-9 grams of fiber. Also, the product is launched in strawberry, bold blueberry, and coconut crunch flavors in the market. Major market players in the global breakfast cereals market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global breakfast cereals market.