Published on : Apr 21, 2016
The increasing count of convenience stores have resulted in brand visibility, hence boosting the growth of the breakfast cereals market. In addition, the shift in breakfast habits of people particularly within developing markets has also stimulated market growth. Furthermore, the swift growth of the Asia Pacific breakfast cereal market will also augment the growth of the market.
Owing to the soaring demand for American-style breakfast cereals growing globally, the ready-to-eat segment of breakfast cereals have emerged as the most preferred items. India, Brazil, and China are the top destinations for cereal marketers.
- Increasing Penetration within Emerging Economies: Within India and China, the middle class population stood at 430 mn in 2010 and is predicted to touch 1.2 bn by 2030, as given in the statistics of the World Bank. In developing economies, the increasing middle-class population is said to have an increased preference towards the adoption of food habits of the West, which also comprises breakfast cereals.
- Shifting Lifestyles of People: shift in the lifestyle of individuals owing to the hectic lifestyles need longer working hours and thus these people do not have the time to cook on daily basis, particularly on weekdays too. Hence, these people prefer to consume foods which do not require long preparation times, fuelling the market for breakfast cereals. In addition, the rising disposable incomes of people globally is also having a positive impact on the purchase of packaged foods, once only afforded by the upper classes. The penetration of a number of convenience stores in numerous urban areas has increased the brand visibility of these cereals, hence boosting the market for breakfast cereals.
- Rising Popularity of Hot Cereals in Asian Countries: Breakfast cereals are majorly of 2 main types namely, ready-to-eat (RTE) cereals and hot cereals. As suggested by the name, hot cereals require preparation and need to be cooked or heated, while RTE cereals are ready to be consumed cereals. RTE is being highly demanded in Europe and North America and hold over 85% share in the market. However, hot cereals will gain more traction by 2019, representing approximately 18.0% in the market for breakfast cereals. This segment will receive impetus from the growing popularity of breakfast cereals within Asian countries.
The key companies dominant in the market are PepsiCo., Kellogg Co., General Mills, Cereal Partners Worldwide, Weetabix Food Company, and Post Holdings, among others.