The Breakfast Cereal Market refers to the manufacturing, supply and marketing of processed products made out of grains, which are mostly eaten in the morning as a breakfast food. The breakfast cereals are available in different types of flakes, puffs, granola and muesli which may be sprinkled with vitamins, minerals and artificial flavorings.
The main task of the industry is to offer tasty, convenient, and nutritive breakfasts that fit the way of modern life and the healthy trendy eating. The trend among consumers today is to purchase cereals that are not only low in sugar content, but also rich in fiber content and those that are prepared using natural ingredients thereby influencing product development and market penetration.
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Market Drivers
1.Increase in Demand of Healthy and Ease Convenient Breakfasts
Demand of ready-to-eat nutritious breakfast cereals is also greatly increasing due to the fact that there is a growing rate of life in an urban center and the necessity of having a breakfast is also arriving to a lot of people. On-the-go healthy cereal is of interest to consumers as it fits in their busy schedules. The clean-label product, functional foods and plant-based ingredient trend is making firms develop cereals that contain fortified nutrients and grains that are organic.
2. Effect of Food Fad and Health Consciousness
Awareness about obesity, diabetes and heart health in the global market has changed the preferences of people towards low sugar but high fiber cereal brands. Gluten-free, whole grain, and high-protein-marketed cereals are gaining massive popularity and mainly among millennials and other consumers who are into fitness. This trend is also compelling cereal brands to redesign classical products and come up with innovative SKUs that would involve a more health-conscious consumer.
Product Type Segment Analysis: Ready-to-Eat (RTE) Cereals
The ready to eat (RTE) breakfast cereal category occupies the market because it is convenient and is widely available. These cereals serve as ready-cooked foods and need not be cooked. Therefore, they suit consumers who are pressed short of time. Such cereals manufactured by RTE are in different forms: shaped extruded grains, flakes, puffs. The expansion of the networks in retailing, fancy packaging and diversified portfolio (that satisfies kids and adults both) are contributing to the growth of this segment. Embracement of instant breakfast cereals as an alternative to hot cereals in busy mornings has remained the key driver of RTE products in developed and the emerging economies.
Ingredients Segment Analysis: Whole Grains
The whole grains-based breakfast cereal is already getting very big as more consumers are switching towards preferring natural and unrefined products. These Whole grains such as oats, barley, quinoa, and millet contain high amounts of dietary fiber and micronutrient. Whole grains aid in digestion by enhancing the energy level as well as additional cardiovascular health. Brands are, therefore, putting high fiber whole grain cereals as heart healthy to attract the health-conscious demographic segment on their packaging. One of the main forces in the growth of this segment is the clean-label and minimally processed food movement.
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Regional Analysis: North America and Europe
In North America, especially in United States and Canada, the marketplace is being shaped up by the demand of low sugar and high protein cereals. This is because of high breakfast culture, good product innovativeness rate and the ease of accessibility in modern retail space. The door to direct-to-consumer sales is also via manufacturers which are also taking advantage of e-commerce and subscription model.
There is an increase in the number of organic, gluten-free, and non-GMO cereals in Europe. Germany, UK and France are facing upward pressure on the sales of plant based and fibre-enriched breakfast cereal, due to considering sustainability and lifestyle transformation. Brands are also getting affected to emphasize transparency and quality because of European regulations regarding the food labeling and health claim.
Competitive Landscape and Industry Players
The global breakfast cereal industry is highly competitive, with established multinational companies and regional brands battling for shelf space and consumer loyalty. Key players include:
• Kellogg Company
• General Mills, Inc.
• Nestlé S.A.
• PepsiCo (Quaker)
• Post Holdings, Inc.
• Weetabix Limited
• Bob's Red Mill Natural Foods
• Nature's Path Foods
Such companies are using product diversification, launching organic and high-protein cereals, online marketing, and health positioning of brands. Partnerships with food gurus, or fitness and healthy lifestyle profiles, and heath programs on trusted and well-known apps are making brands visible and gaining trust. What is more, small-scale cereal producers and private label brands are taking a niche consumer segment with non-GMO multigrain cereal, keto-friendly granola, and high-fiber vegan breakfast cereals.
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