The global breakfast cereals market appears to be consolidated in terms of competition. An intense degree of rivalry exists between the key market players because of low switching costs and lack of diverse products. The top three companies, Cereal Partners, General Mills, and Kellogg’s, held 50 of the total market in2012 in terms of value, states a recent study by Transparency market Research (TMR).
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Several market players have been focusing on launching attractive products for widening their consumer pool. ConAgra Foods acquired Ralcorp in January 2013, whereas Post Holdings, a part of Ralcorp Holdings, became an independent company in 2011. After introducing products such as Honey Bunches, Great Grains Protein Blends, and Good Morenings that gained widespread popularity, Post Holdings rose to prominence in the U.S. market, accounting for a share of about 9% in 2012.
As the demand for breakfast cereals grows, the global market for breakfast cereals is expected to achieve revenue worth US$ 43.1 mn by the end of the forecast period, in terms of value. The market will grow at a steady rate, with a CAGR of 4.1%.
RTE Segment to Present Substantial Opportunities
Based on type, the global breakfast cereals market has been categorized into hot cereals and ready-to-eat (RTE) cereals. While the hot cereals segment is constantly expanding because of growing demand in Asia Pacific, the ready-to-eat cereals segment is expected to lead the market on a global scale. According to the findings of TMR, ready-to-eat products held about 85% of the total breakfast cereals market in North America and Europe. The RTE segment is projected to attain US$35.49 mn in these two regions by the end of 2019.
Based on geography, the U.S. has been exhibiting increased demand, accounting for the leading share in North America. Other geographical segments studied in the report include Asia Pacific, Europe, and Rest of the World. The large population base of Asia Pacific, changing lifestyles, rising per capita income of the people, together with a tendency to follow Western diets, is driving the market for breakfast cereals in the Asia Pacific. The constant increase in the number of convenience stores in countries such as India, Japan, and China is another reason behind the expansion in this region. As an increasing number of women do not find time to cook because of their professional pursuits, the need for a healthy, instantaneous breakfast has arisen. Breakfast cereals, being a viable option, have therefore been increasingly adopted, aiding market expansion. Besides the countries of Asia Pacific, Brazil and Russia will also emerge with great potential, as breakfast cereals grow more popular.
Rising Preference for Convenience Foods to Drive Growth
The increasing rate of urbanization and the consequent emergence of convenience stores, growing preference for convenience foods as the number of working women increases, have been the key growth drivers of the global breakfast cereals market.
Limited access to palm oil, an ingredient used in the production of breakfast cereals, has been one of the key factors restraining growth. Moreover, the availability of a wide range of alternatives such as eggs, toast, and other traditional breakfast dishes is likely to obstruct the growth of the breakfast cereals market. However, the market will witness significant opportunities on account on the rising popularity of RTE products worldwide.
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”.
Key Segments of Global Breakfast Cereals Market
Segmentation of the global breakfast cereals market by product type:
- Hot Cereals
- Ready to Eat Cereals
Major regions analyzed in this research report are:
- North America
- Asia Pacific
- Rest of the World
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