Breakfast Cereals Market is Anticipated to Expand at a CAGR of 4.10% during 2013 and 2019, Expected to be worth US$43.2 bn by 2019
Breakfast cereals form an incredibly large part of the daily diet in terms of overall consumer base around the world. Although breakfast cereals were originally available in and popularized in the U.S., globalization and product appeal soon brought some of the top cereal brands to international shores and convenience stores. Breakfast cereals now form a part of regular diet for nearly every middle class family in urban areas.
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The primary factor driving the global breakfast cereals market currently is the high rate of adoption of western culture, practices, and food consumption traits by eastern countries, especially those from the Asia Pacific. In fact, the overall increase in demand for breakfast cereals in emerging economies around the world is expected to be the sole driver for the global breakfast cereals market as a whole. This market is, however, currently being undermined by the drop in supply of palm oil, which is one of the key ingredients required to manufacture breakfast cereals. Additionally, developed economies are steadily moving towards alternative forms of breakfast foods, either due to the growing for convenience food such as cereal bars, or the consumption of other, more wholesome breakfasts.
By the end of 2016, the global breakfast cereals market is expected to reach US$38.3 bn in terms of revenue generated. This market is expected to expand at a steady CAGR of 4.10% within a forecast period from 2013 to 2019. By the end of 2019, the global breakfast cereals market is expected to reach US$43.2 bn.
High Population in APAC Shows Key Opportunities for Cereal Manufacturers
Geographically speaking, the global breakfast cereals market had consistently held a very important position in the developed regions of North America and Europe in the previous decade. It is in these regions that the manufacturers of breakfast cereals have found the majority of their demand and scope for greater product innovation. After 2006, the consumption habits of the people in Asia Pacific began to change drastically, owing to several factors such as greater awareness of multiple food products and improvements in international trade and transportation. An older publication by the World Bank showed that the middle class population of India and China together is expected to reach 1.2 bn by 2030 at its current growth rate. This fact, coupled with the earlier shift in eating habits and tendencies is expected to propel the Asia Pacific demand for breakfast cereals. This is also augmented by the growing number of convenience stores that sell popular breakfast cereals, further increasing brand visibility, along with the growing scope of ecommerce in the food and beverage industry.
Common Global Lifestyle Traits Point to RTE Cereal Consumption Spike
A generalized segmentation of the global breakfast cereals market can be done as per the cereal types, into hot cereals and ready-to-eat cereals. The former are chosen as the more appealing in terms of taste, fullness, and health. However, current trends of society – especially within urban areas where cereal consumption is much higher – shows that people prefer ready-to-eat cereals far more than hot cereals. A large percentage of the urban population in all countries is known to be engaged in hectic lives that revolve primarily around their work. This offers them little time when it comes to cooking food and therefore, allows a greater proportion of sales for RTE cereals.
The key players currently associated with the global breakfast cereals market include General Mills, Kellogg’s, PepsiCo., and Post. Other prominent players in this market include Cereal Partners Worldwide, Post Holdings, and the Weetabix Food Company.