Breakfast Cereals market size is estimated to be valued over US$ 39.9 billion in 2019 and will register a CAGR of 5.7% to create significant revenue opportunity for industry players.
The industry is bit saturated and consolidated with major players accounting for over 90% of global share. Kellogg accounted for 28.6% of global breakfast cereals market share in 2017. While the market is saturated, rise in disposable income, changing lifestyle and demand for on-the-go breakfast is creating substantial revenue opportunity for players. The industry will register 1.6X increase in its revenue by 2028.
In the last few years, competition has heightened to a new level. Many leading breakfast cereals market players have good capital and marketing resources – thereby leaving a very narrow space for new entrants to step in. Players are focusing on product innovation (taste oriented brands) and branding in order to stay agile. On an average, these companies allocates 92% advertisement spending on TV followed by internet and magazines. The scenario is changing with internet gaining significant traction.
Breakfast Cereals Marketing and Product Level Strategy:
Nutritional products, high production capacity, emergence of automation in manufacturing facilities, and strong distribution network are key factors determining success of breakfast cereals market players.
In 2010, TV accounted for 96% of total advertisement spending. However, increasing popularity of social media has led multinational companies to strategically shift their focus towards direct internet marketing. Internet advertisement has increased from 3% in 2010 to 5.9% in 2018. The trend is likely to continue throughout the forecast period.
Companies mainly focuses on nutritional advertisement as growth strategy. Products are categorized based on age demographics. Wide ethnic diversity has further promulgated companies to adopt regional taste preference branding.
Breakfast Cereals Value Chain Analysis:
Over the last few years, industry value chain ecosystem has highly efficient. Better transport infrastructure, cheaper availability of raw materials and increase in offline shelves has helped the market to bridge the supply chain gap. Few of these players have integrated their raw material procurement with manufacturing plants. This largely helps company to reduce their operational costs.
Global Breakfast Cereals Market Size Analysis, By Cereal Type
Ready-to-eat cereals accounted for 71% of total revenue in 2018. The segment is characterized by introduction of new products, high profit margins and large advertising to sales revenue. Consumers are inclining towards nutritious ready-to-eat cereals. As such, demand will grow at a substantial rate.
Hot cereals is also gaining prominence with rise in demand from developing regions. The trend is common in south East Asia. Multi-grains is one aspect of hot cereals that is creating favorable ecosystem for industry players.
Global Breakfast Cereals Market Size Analysis, By Distribution Channel
Majority of breakfast cereals are sold through hypermarkets and supermarkets. As of 2018, hypermarkets and supermarkets collectively accounted for 63% of global breakfast cereals market sales. The scenario however differs in developing regions. In developing regions, majority of breakfast cereals sales took place through independent grocery stores. This could be attributed to the fact that developing markets is highly fragmented and consumers are inclined towards purchasing products from local shop vendors. There exists huge market opportunity in tier 2 and tier 3 cities. Well planned strategic marketing could help companies to tap unorganized market and further enhance their revenue.
Global Breakfast Cereals Market Size and Forecast: Regional Analysis
North America is the market leader in net consumption of breakfast cereals. North America breakfast cereals market is estimated to be valued over US$ 14.7 billion in 2019. Breakfast cereals are quite popular among adults in U.S. Moreover, companies are focusing on product packaging strategy in order to scale business among kid segment. The region is saturated, as a result of which industry players are primarily focusing on inorganic growth to enhance ROI. General Mills and Kellogg accounted for highest in the region.
Asia Pacific has diverse ecosystem. The region is characterized by the presence of saturated market (Japan, Australia and South Korea) and growing market including China, India and ASEAN. Breakfast cereals is registering a sluggish growth rate of 2.7% in Australia. Kellogg is the market leader in Australia. The company accounted for 32% of total sales in 2017 and is expected to maintain the share throughout the forecast period.
Contrary to Australia, Japan is registering substantially higher growth rate (4.5%). Introduction of granola products has created favorable demand in the country. In Japan, Calbee Foods dominated the sales in 2017. The company accounted for 39% of total market share in 2017. Calbee registered high demand for its granola brand – Frugra. The company is expected to further expand its business presence in China and India.
China is the most lucrative destination for players. The country registered 12.3% growth in 2017 and is expected to maintain double digit growth for another three years. PepsiCo was the market leader in 2017. The company has strong distribution network and primarily operates through direct sales channel.
Global Breakfast Cereals Market Size and Forecast: Competition Landscape
Some key Breakfast Cereals market players are:
- Marico Limited
- General Mills
- Kellogg Company
- B&G Foods
By Cereal Type:
- Ready to Eat (RTE) Cereals
- Hot Cereals
By Distribution Channel:
- Independent Grocery Stores
- Company Outlets
- Online Sales
What Will You Discover in the Report?
- An in-depth analysis of the Breakfast Cereals market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
- How the Breakfast Cereals market sales is expected to grow throughout the forecast period.
- How geopolitical policies and technological changes will affect the Breakfast Cereals market in near future
- Where the stakeholders should invest to generate higher profit margins
- How consumers (end-users) will reflect to the Breakfast Cereals industry during the forecast period
- Who are the Breakfast Cereals industry leaders and what are the key initiatives taken by them for long term growth
Who will benefit from the Report?
- Breakfast Cereals Industry Suppliers
- Breakfast Cereals Industry Manufacturers
- Consultants and Analysts
Analyst access with Bekryl Market Analysts
Purchasing of Breakfast Cereals market research report will give clients access to 120 minutes telephonic access with a research analyst. The duration for access to analysts will be based on the report subscription editions.
Breakfast Cereals Market Research Methodology
Breakfast cereals is registering substantial growth and is marked by high rise growth in China and India. Various product level innovation and mergers and acquisition took place in the market. As a result of which, the industry is gaining substantially competitive. Bekryl conducted three month deep level study to understand how the market is going to shape in next ten years. This report is intended to help stakeholders understand the latest breakfast cereals market trend, key strategies and market size.
Bekryl Market Analysts has earned reputation within the market research and consulting industry for its ability to not only collect and reprint data but also its ability to build upon its extensive models and databases to provide meaningful forecasting and strategic planning services to clients.
Our research analyst and industry experts thoroughly investigates the industry by extensively interviewing the industry leaders and analyzing information from various secondary sources. The information collected is analyzed with the help of analytical tools to offer real time forecast solutions.
Breakfast Cereals Market Growth Forecasting Methodology
In order to prepare historical data and analyze Breakfast Cereals market forecast, Bekryl prepare data for product supply and actual demand from end-use consumers. Through this, we get to know actual demand for Breakfast Cereals market globally. The data collection is done through secondary and primary market research and then a constructive model is developed.
- Secondary market research involves data collection through various paid publications and government agencies. Various journals and pre-encrypt transcripts is decoded to get the real time data solutions
- The data collected through secondary research is then validated with the industry experts to minimize the anomaly and reflect key stakeholders opinion in the report.
With the model constructed, the cluttered data collected through different sources is structured with the help of proprietary analytical tools – making us understand the variation happened in the current year compared to historical years. To forecast Breakfast Cereals industry revenue, Bekryl Market Analysts takes in consideration the demand growth of the segments. Demand for the product is dependent on end-user spending which is a function of many factors: amongst them macroeconomic strength, price variation and other base factors.
The forecast methodology requires extensive data analysis across countries. Among all the factors, GVA and GDP output is considered as the first set of approximation. Bekryl Market Analysts has developed a demand driven model based on GDP across targeted countries. Under this, co-relation is analyzed between product and GDP – resulting in a constant GDP-Product coefficient. Higher the coefficient- greater will be the growth rate. For instance, GDP-Product segment coefficient matrix of 3 denotes Breakfast Cereals industry growth is nearly 3.5X to 5.5X higher than the relative GDP.
Besides GDP-Product Coefficient, Bekryl establishes following relation variation for higher predictive analysis.
- Base Factors Growth Analysis
- Price Variation Analysis
- Potential Consumer Mapping
Breakfast Cereals Industry Players: Competition Landscape Methodology
Bekryl maps key market players across regions. Financial ratios is taken in consideration along with regional presence and their value chain to understand the company market strength. Thereafter, investment proposition for each company is proposed which gives coefficient matrix value for the company. Industry experts is also reflected in company landscape.