United Kingdom breakfast cereals market: £2 billion industry in 2012

Press Release   •   Feb 19, 2013 17:06 GMT

Kellogg Co of Great Britain Ltd maintained its position as the category leader in the United Kingdom breakfast cereals market, with a 32% value share in 2012. Weetabix Ltd and Cereal Partners UK Ltd were ranked second and third, with value shares of 15% and 12% respectively.

The breakfast cereals category in the UK faces increasing competition from a number of alternative breakfast formats to traditional cereal; however, continued volume growth by hot cereals and muesli enabled an overall 1% growth rate for breakfast cereals. In 2012, the rate of growth remained largely consistent with that achieved over the review period.

Overall, the breakfast cereals category will see constant value sales remain effectively flat, while volume sales are set to rise at a 1% CAGR over the forecast period. Prices will face upwards pressure due to rising raw material costs and the further development of more premium value-added products, as consumers trade up to healthier and more indulgent product formats. However, the breakfast cereals category is mature and will face intense competition internally and from alternative breakfast products over the course of the forecast period. This is likely to counter cost pressures, pushing down prices in constant value terms, resulting in static value growth. Continued negative publicity regarding the sugar content of breakfast cereals may also limit volume growth potential.

Key Headlines

- In 2012, breakfast cereals experiences 5% current value growth and 1% volume growth to reach sales of £1.9 billion and 521,000 tonnes respectively
- Instant porridge pot launches stimulate the already-impressive growth of breakfast cereals designed for on-the-go consumption in 2012
- Hot cereals continues its robust expansion with the highest current value growth rate of 15% in 2012
- A 4% unit price increase is recorded in 2012, representing the greater part of value growth
- Kellogg Co of Great Britain Ltd remains the leader in breakfast cereals, with a 32% value share in 2012
- A 1% volume CAGR and flat constant value sales growth are expected over the forecast period

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