The breakfast cereals market is estimated to grow at a CAGR of 4.46% to reach a market size of US$34.980 billion in 2027 from US$25.765 billion in 2020.
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 retail businesses like convenience stores
Over the past few years, convenience and department 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 are directly related to economic growth and the speed of urbanization. Due to various factors, such as unbalanced industry and regional economic development in various parts of the world, most convenience stores have limited their operations to developing and expanding cities.
The availability of substitutes is a form of the traditional form of breakfast, which is restraining the growth of the market
There is a presence of substitutes that 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 requirements while producing these cereals.
Increasing household expenditure in developing countries
It is regarded as one of the primary drivers of market growth during the forecast period. Household spending in China and Brazil increased from the US $5.640 billion and the US $1.850 billion in 2012 to nearly US $9.809 billion and the US $2.1 billion by the end of 2018. Both public and private players are investing heavily in developing countries to cater to the growing demand for breakfast cereals on account of rapid urbanization and growing health awareness.
North America holds a significant share of the market
By geography, the breakfast cereals market is segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The North American market is expected to hold a significant share of the market owing to the presence of major players coupled with the growing number of product launches in countries like the United States and Canada. In the Asia Pacific region, due to changes in breakfast consumption patterns in the last couple of years and rising western influence in countries like China and India, 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 fibre and multigrain breakfast cereal has also triggered 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 contributes to the growth of the maple syrup market by making it easily available to Mexican consumers. According to the National Association of Retailers (ANTAD), there were more than 2,658 store openings, 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 speciality food retailers in Mexico and Chile, to accelerate its growth in Latin America.
Competitive Insights
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 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 the customer base and promote their brand. In addition, market players are investing heavily in research and development and product launch of innovative, fruit-flavoured, and high-fibre breakfast cereals in the market.
Recent Development and expansions
Consumer demand increased as a result of the COVID-19 lockdowns, which led to an increase in breakfast consumption at home and the comeback of breakfast cereals. When it comes to morning cereals, customers still put taste first, but since the epidemic, they have begun to place higher importance on health. Due to the outbreak, which has kept everyone inside their houses, people have started eating cereal again. It is anticipated that the habits formed during the epidemic would last, with a renewed focus on eating healthfully at home and playing a crucial role in market expansion. Due to consumer demand for dependable, satisfying products with a long shelf life during the COVID-19 pandemic, the ready-to-eat industry has seen growth.
| Report Metric | Details |
| Market Size Value in 2020 | US$25.765 billion |
| Market Size Value in 2027 | US$34.980 billion |
| Growth Rate | CAGR of 4.46% from 2020 to 2027 |
| Base Year | 2020 |
| Forecast Period | 2022–2027 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Type, Product, Distribution Channel, And Geography |
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies Covered | General Mills, Nestle S.A., Attune Foods, Kellogg Company, Dr. Oetker, Freedom Foods Group, Carman's Fine Foods, Food for Life Baking Co. Inc., POST HOLDINGS, INC, B&G Foods Inc. |
| Customization Scope | Free report customization with purchase |
Segmentation:
Frequently Asked Questions (FAQs)
Q1. What is the size of the breakfast cereals market?
A1. Breakfast Cereals Market was valued at US$25.765 billion in 2020.
Q2. What are the growth prospects for the breakfast cereals market?
A2. The global breakfast cereals market is estimated to grow at a CAGR of 4.46% over the forecast period.
Q3. What factors are anticipated to drive the breakfast cereals market growth?
A3. Growing consumer awareness regarding the health benefits of grain-based breakfast is augmenting the breakfast cereals market growth.
Q4. What will be the breakfast cereals market size by 2027?
A4. The breakfast cereals market is estimated to reach a market size of US$34.980 billion by 2027.
Q5. Which region holds the largest market share in the breakfast cereals market?
A5. North America is expected to hold a significant share of the breakfast cereals market owing to the presence of major players coupled with the growing number of product launches in countries like the United States and Canada.
General Mills
Nestle S.A.
Attune Foods
Kellogg Company
Dr. Oetker
Freedom Foods Group
Food for Life Baking Co. Inc.
POST HOLDINGS, INC
B&G Foods Inc.
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.