by Breakfast cereals are easily digestible foods made from components such as wheat, oats, rice, corn or barley. They provide important nutrients required for daily function such as vitamins, minerals, carbohydrates and protein. With changing lifestyle and lack of time for cooking elaborate breakfast meals, ready-to-eat cereals have become popular among urban consumers. Moreover, growing health consciousness is prompting people to choose cereals as they are considered relatively healthier compared to fried or fatty breakfast options.
The global Breakfast Cereals Market is estimated to be valued at US$ 59183.48 Bn in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The breakfast cereals market is witnessing increasing demand for natural and organic varieties. Major players are focusing on introducing cereals made from whole grains, without added sugars and artificial ingredients. For instance, Kellogg’s launched a new range of organic cereals under the brand name ” Special K Organic”. Similarly, General Mills offers ” Annie’s Homegrown” brand of organic cereals made from ingredients like ancient grains. Packaging plays a crucial role in attracting health-conscious millennial consumers. Companies are coming up with innovative, single-serve packaging solutions for on-the-go consumption.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the breakfast cereals market is moderate due to established brands and the requirement for significant capital to build manufacturing infrastructure and distribution channels.
Bargaining power of buyers: The bargaining power of buyers in the breakfast cereals market is high due to presence of numerous established brands offering similar products. Buyers can easily switch between brands based on pricing and promotions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials such as corn, oats, and wheat are widely available globally. However, suppliers still have influence over prices depending on overall supply conditions.
Threat of new substitutes: The threat of substitutes is high due to presence of other breakfast options such as toast, pancakes, fruits, yogurt and dairy products. Price-sensitive consumers may opt for cheaper alternatives.
Competitive rivalry: The competitive rivalry in the market is high among top players due to established consumer loyalty for brands. Players compete based on new product launches, advertising, and promotional activities.
Key Takeaways
The global Breakfast Cereals Market Growth is expected to witness high growth over the forecast period.
Regionally, North America accounts for the largest share driven by increasing consumption of convenient packaged snacks. The market is witnessing significant demand from countries like the US and Canada.
Key players operating in the breakfast cereals market are Aetna Inc., AIA Group Limited, Allianz, Assicurazioni Generali S.P.A., AVIVA, AXA, CIGNA, Ping an Insurance, and UnitedHealth Group Inc. Strategies adopted by leading players include new product launches, mergers and acquisitions to strengthen their regional presence. For instance, in 2021, Kellogg’s launched a range of organic cereals to target health-conscious consumers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
