Breakfast Cereal Market Segmentation, Demographics, Share And Trends

People have started returning to cereal as a result of the outbreak, as they have been confined to their homes. It is expected that the habits developed during the pandemic will persist, with a renewed emphasis on eating properly at home and be instrumental in market growth. By late 2019, the global breakfast cereal market had begun to recover, but ready-to-eat have received a boost as customers seek familiar, comforting goods with a long shelf life during the COVID-19 outbreak. Kellogg Co. and General Mills, Inc. for example, has hired additional workers to help meet the increased demand.

Although indulgent flavors are popular, cereal manufacturers are also attempting to appeal to consumers who want goods that are made with healthier, less processed components. In established markets like North America and Europe, the nutritional content is a major consideration when developing a new product. Gluten-free, keto-friendly, ready-to-eat and organic/non-GMO breakfast cereals are examples of niche breakfast cereals. Brands combine ancient grains, superfoods, probiotics, seeds, and nuts to enhance value and give products a health halo. Manufacturers are updating their products by offering healthier grains in more convenient packaging, resulting in market growth.

The fast-paced lifestyle of the young working population has led to the development of ready-to-eat breakfast cereals. The even more convenient ready-to-eat items, which can be consumed without cooking and appear to be suitable for busy millennials, have therefore surged in popularity. The rising demand for the segment is expected to be fueled by millennial demography. Furthermore, in developing nations, the growth of retail infrastructure such as supermarkets & hypermarkets is another factor fueling the market growth. The proliferation of e-commerce is another significant factor driving industry growth.

North America held the largest market share globally accounting for around 41% of global value in 2021. The region has the highest penetration in the world, with per capita consumption of both hot and ready-to-eat kinds of cereal exceeding that of other regions. However, the region has been witnessing a decline in ready-to-eat, and regions such as Europe, and the Asia Pacific are showcasing promising growth.

The market is fragmented with the presence of global and regional players offering a variety of cereal options customized to the local palates. These players are focusing on increasing their customer base by cashing in on the nostalgia factor and rising demand for healthy breakfast options during the pandemic period.

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global breakfast cereal market on the basis of gender, product, distribution channel, and region.

A. The major players in the breakfast cereals market include PepsiCo, Inc., General Mills, Kellogg Co, Bagrrys India Ltd., Post holding Inc, Hamlyn's of Scotland, Bobs Red Mill Natural Foods Inc., B&G Foods Inc., Marico Limited, and Nature's Path Foods.

The growth of the market increased due to the changing food habits and the influence of western culture on the dietary patterns of consumers, as it provides a convenient solution to readily accessible food that optimizes the ease of consumption without further preparation. Also, consumer preference for nutritious and healthy food on a regular basis is driving the market. Moreover, the robust growth of convenience stores that promotes brand visibility is driving the growth of the breakfast cereals market.

The growth of the breakfast cereal market can be positively attributed to factors such as the resurgence of the hot cereal sector and increasing demand for premium products. The hot cereal sector is made up of products that are heated before eating, with the prime example being porridge. The demand for hot cereals is likely to continue on an upward trajectory over the next five years.

The global breakfast cereal market is segmented by type, distribution channel, and geography. Based on type, the market is divided into ready-to-cook breakfast cereals and ready-to-eat breakfast cereals. By distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, online retailers, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value in USD million.

With the rise in urbanization, the growing middle-class population, the increase in the number of working women, and the rise in disposable income, the developed and developing regions across the globe are witnessing a rising demand for breakfast cereals. They are more convenient, unlike complex traditional home-made items, which take much longer to prepare. According to USDA, there was a 60% increase in the sales of breakfast cereals in India. Furthermore, according to the APEDA, in 2021, the United States, Canada, and the United Kingdom witnessed growth in sales of breakfast cereals. These regions collectively represented 54% of world breakfast cereal consumption despite having only 6% of the global population. Hence, the increase in demand for healthy and nutritious food is driving the breakfast cereal market across the globe.

In the Asia-Pacific region, China dominates the market, holding the largest market share, followed by Japan and Australia. This is due to the change in breakfast cereals consumption patterns and inclination toward healthier products. Also, the increased adoption of the western lifestyle is one of the driving factors of the market sales. The recent trends indicate the growth in the breakfast cereal segment. In Asian countries like Japan, cereal options were limited to basic cornflakes and comparable items. But every year, companies keep launching a greater variety of sweet and flavored breakfast cereals in Japan.

Frosted flakes are very popular in Japan. It contains less sugar, unlike the frosted flakes sold in other countries like the United States. This reflects the health-conscious nature of the Japanese people, and companies are trying to attract a more Japanese consumer base by making breakfast cereals healthy. Product development is one of the most adopted strategies in the Asia-Pacific breakfast cereal market. For instance, in 2021, Kellogg India introduced Froot Loops to its breakfast cereal range to get the benefit of increased in-home consumption of packaged products, owing to the post-covid surge in the market. Product development of low-carb, high-fiber, multigrain, and fortified breakfast cereals that appeal to health-conscious consumers triggered the market's growth.

The breakfast cereals market is competitive in nature, with a large number of domestic and global players competing for market share. Some of the major key players in the market include Kellogg Company, General Mills Inc., Nestle SA, Post Holdings Inc., and Campbell Soup Company. The key market players are significantly investing in research and development activities in the breakfast cereals market to introduce new and innovative variants to meet the emerging consumer demand for healthy and clean labeled foods products. The market also sees collaborations between companies to strategize unique marketing campaigns. 2b1af7f3a8