Published on : Feb 08, 2016
The demand for convenient food, particularly breakfast cereals has incredibly increased in the last few years, thanks to busy lifestyle of consumers. Breakfast cereals market has reached its maturity in developed nations, where they are already a part of consumers’ daily diet. However, the market in developed countries is suffering as consumers incline more towards traditionally healthy meal and on-the-go bar. Nevertheless, the rising demand from developing nations in Asia Pacific and Latin America is anticipated to compensate for the saturated opportunities in the developed countries.
According to the World Bank, the population of middle income people in India and China will rise from 430 million in 2010 to 1.2 billion by the end of 2030. The rising disposable income of people will provide the breakfast cereals market to capitalize on the changing food habits of consumers living in these countries.
The global market for breakfast cereals can be broadly classified into Hot cereals and RTE cereals. Of these, the RTE cereals segment holds the larger share of the market.
Bottlenecks in Raw Material Procurement to Hinder Global Breakfast Cereals Market
Despite witnessing impressive growth around the world, the market for breakfast cereals will be restrained by the incumbent bottlenecks in raw materials procurement due to environment issues. For instance, problems related to palm oil procurement, which is a key ingredient in breakfast cereals production, will limit the market’s growth to an extent. Nevertheless, the rise in number of convenient stores in developing regions will enable the market gain its lost momentum in the near future, by boosting opportunities for the sale of breakfast cereals. However, as consumers incline more towards healthier eating habits, it will yet again hamper the growth of the global breakfast cereals market.
Enterprises Capitalize on Product Reformulation to Enjoy Sustainable Growth
Since, consumers nowadays have become more aware about what food is good for their health, producers are impelled to focus on reformulating their products. An increasing number of breakfast cereals producing enterprises are replacing hydrogenated oils and fats with other healthier ingredients. Such product innovation will bolster the scope for growth of the global breakfast cereals market.