The UK breakfast cereals market experienced 5% current value growth and 1% volume growth through 2012, to reach sales of £1.9 billion and 521,000 tonnes respectively.
Britons are the biggest spenders on breakfast cereals in Europe, with per capita spending significantly ahead of countries such as France, Spain and Germany.
However, the breakfast cereals industry in the UK is said to be facing its biggest slump in 100 years. Evidence shows that the majority of top brands are experiencing a decline in either value or volume, or even both.
This is due to market saturation, the growing role of own-label goods, heavy promotional activity and manufacturers' slow response to consumers' changing lifestyles in the RTE cereals sector. There is a growing demand in the UK for on-the-go convenient breakfast solutions, which boxed cereals are not suitable for.
As a result, consumers are increasingly opting for cereal bars, instant porridge and other breakfast solutions, such as pastries and pancakes, instead.
Today, making the decision to eat a healthy balanced diet is very important for many consumers. More than ever before people want a lifestyle in which the food they eat and the activities they take part in contribute equally to keeping them healthy.
This has led consumers to become more aware of the excessive sugar content in major brands, including Frosties and Sugar Puffs, which is deterring increasingly health-conscious consumers from the staples subsector.
UK sales of eight of the 10 most popular brands, including Corn Flakes, Crunchy Nut, Coco Pops, Cheerios and Special K, fell sharply in 2010-11. Rice Krispies, the worst performer, was down 12%, while Weetabix bucked the trend, rising 4%,
Kellogg Co of Great Britain Ltd maintained its position as the category leader in the UK breakfast cereals market, with a 32% value share in 2012. The company has developed a range of products for the segments within this market, targeted at all age groups over three years old. This includes 39 brands of cereals as well as different types of cereal bars.
Weetabix Ltd and Cereal Partners UK Ltd were ranked second and third, with value shares of 15% and 12% respectively.
With vast new markets to explore, the UK breakfast cereals market isn't dead yet. But, at least people are beginning to rumble the fact that by and large, most processed breakfast cereals are not healthy or good for you, at all.
For more information on the UK breakfast cereals market, see the latest research: UK Breakfast Cereals Market
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