The vendor landscape of the global breakfast cereals market includes companies such as PepsiCo., Kellogg Co., General Mills, Cereal Partners Worldwide, Post Holdings, and the Weetabix Food Company. The market players are introducing innovative flavors in breakfast cereals to cater to customers across different regions. The U.S. had been the pioneer market for breakfast cereals. However, during the forecast period, Asia Pacific is anticipated to emerge as the fastest growing breakfast cereals market, ahead of North America and Europe. In fact, North America and Europe are anticipated to register a decline in the demand for breakfast cereals whereas Asia Pacific is projected to account for around 13% of the overall market by the end of 2019.
As a result, the market players are narrowing down their strategies to expand in this region. The market players are focusing on region-specific breakfast habits to promote their products accordingly. For example, Chinese consumers prefer hot breakfasts containing rice. Hence, the manufacturers are introducing hot breakfast cereals to appeal to customers. “Though China remains a challenging market for these companies, the nation is anticipated to register a strong demand due to hectic lifestyles and an increase in number of young consumers preferring breakfast cereals over traditional Chinese breakfast,” cites a TMR analyst.
Asia Pacific Drives Demand for Hot Breakfast Cereals
Among the major types of breakfast cereals, ready-to-eat (RTE) breakfast cereals are more popular across North America and Europe. About 85% of the overall demand for breakfast cereals across these regions consists of RTE cereals. The busy lifestyles of consumers in these regions can be attributed to the growing demand for RTE cereals. However, Asia Pacific proves to be new ground for the breakfast cereals manufacturers as a majority of consumers prefer hot breakfast at the start of the day. Hence, the hot cereals segment is anticipated to register a positive growth in this region and is expected to hold 18% of the overall market by 2019.
Sourcing of Palm Oil Emerges as a Big Threat for Cereal Manufacturers
Change in breakfast habits across the emerging economies has played a pivotal role in the growth of the global breakfast cereals market. The rise in the number of convenience stores in developing nations has increased the brand visibility of breakfast cereals, thereby contributing towards their sale. However, the availability of alternative breakfast options such as baked food products and inexpensive breakfast options from fast food chains might play spoilsport in the growth of the market. Furthermore, the sourcing of palm oil is developing into a big threat for the cereals manufacturers. The global breakfast cereals market has a significant opportunity to grow with the launch of new flavors by the key manufacturers.
The global breakfast cereals market is anticipated to expand at a CAGR of 4.10% during the period between 2013 and 2019. The overall market was valued at US$32.5 bn in 2012 and is expected to be worth US$43.2 bn by the end of 2019.
The information presented in this review is based on a Transparency Market Research report, titled “Breakfast Cereals Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.”
Global breakfast cereals market has been segmented as:
Segmentation of the global breakfast cereals market by product type:
Major regions analyzed in this research report are: