Breakfast Cereals Market - Snapshot

Breakfast cereals are regarded as one of the most highly fortified foods products in the world. It is high in both mineral and vitamin content. Important contributors to nutrient intakes, breakfast cereals are extremely popular in the countries of Europe and North America. In the recent years, break cereals has gained traction amongst the young generation in the countries of Asia Pacific, which is likely to open up new avenues of growth for the global breakfast cereals market in the years to come. Fortification of food products are allowed in the developed countries of the world.

Scope of Use in Infant Food to Open Up New Growth Avenues for the Market

Breakfast cereals are rich source of folic acid and various other vitamins and minerals, such as the ones mentioned below

Vitamin D

Zinc

B-Vitamins

Iron

In itself, breakfast cereals are also rich in calcium and also by virtue of addition of milk to it.

Breakfast cereals come in wide varieties and are necessary components in grains. Some of the usually used grains comprise

Oats

Barley

Rice

Corn

Wheat

Few of the hot cereals, such as oatmeal products do not come with any other components, whilst other variants come with food preservatives, sweeteners, vitamins, minerals, salts, yeast, and coloring agents.

The global breakfast cereals market is estimated to observe considerable growth over the tenure of analysis. The market is likely to be driven by augmented awareness on part of the consumers about the advantages of intake of breakfast cereals and an inclination toward low calorie diet. Breakfast cereals are finding increased utilization in the infant food industry due to its ability to improve the value of nutrition and hassle-free preparation. This factor is likely to play a significant role in bolstering the growth of the global breakfast cereals market in the years to come.

Global Breakfast Cereals Market: Snapshot

In order to outgun their competitors, keen players in the global market for breakfast cereals are coming up with a different varieties to cater to the different tastes and requirements of customers. Breakfast cereals, which originated in the U.S., have now become a staple breakfast food in almost every part of the world, thanks to globalization. Their worldwide market has been boosted by many factors. One of them is the fact that they are hassle free to make – one can either have them straight from the packet or add milk to them. The mushrooming supermarkets, hypermarkets, and convenience stores worldwide is also seen to catalyzing growth in the global breakfast cereals market.

Posing a hindrance to the market, on the other hand, is the drop in the supply of palm oil, one of the primary ingredients used in making breakfast cereals. In addition, the emerging trend in developed countries of the world to go for wholesome and healthier breakfast is also dealing a blow to the sales of breakfast cereals. However, savvy players’ constant focus on coming up with different types of breakfast cereals will likely help overcome the challenge.

A report by Transparency Market Research predicts the global breakfast cereals market to expand at a lackluster CAGR of 4.10% during the period between 2013 and 2019 to become worth US$43.2 bn by 2019 from US$38.3 bn in 2013.

Minimal Preparation Time Drives up Sales of Ready-to-eat Breakfast Cereals

Depending upon the type, the global market for breakfast cereals can be broadly split into ready-to-eat and hot cereals. Of the two, the sales of ready-to-eat breakfast cereals is outstripping that of hot cereals because of the former’s minimal preparation time. Europe and North America generate most of the demand for ready-to-eat products. Asia Pacific, on the other hand, sees higher sales of hot breakfast cereals. Vis-à-vis value, by 2019, the hot breakfast cereals segment is predicted to hold 18% share in the global breakfast cereals market.

Changing Lifestyles make Asia Pacific Attractive Market

From a geographical standpoint, Asia Pacific is a key region in the global market for breakfast cereals. This is because of the rapid pace of industrialization and urbanization that has increased the spending capacity of the people and changed their lifestyles too. As a result, they have started having western food for their breakfast which is usually hassle-free to make. The increasing number of convenience stores in the region is also serving to propel the market for breakfast cereals by upping the brand visibility for manufacturers of breakfast cereals. The fast-expanding major economies of India and China with high population density are the primary drivers of growth in Asia Pacific. A release by the World Bank reveals that the middle class population of India and China will likely become 1.2 bn by 2030. This is slated to benefit the overall market.

Apart from Asia Pacific, North America and Europe are other key markets. Being developed regions, they have generated robust demand for breakfast cereals in the past decade. In the years ahead, the markets in the two regions will likely expand further because of product innovation. Manufacturers are increasingly focusing on coming up with cereals with different flavors and ingredients to attract more consumers and retain existing ones.

PepsiCo, Kellogg Co., Cereal Partners Worldwide, Post Holdings, and General Mills are to name a few prominent participants in the global market for breakfast cereals.