Breakfast cereals are grain-based snack foods or a type of convenience food commonly eaten for breakfast. These include porridge, muesli, cold cereals, and several other ready-to-eat hot cereals. Breakfast cereals are convenient and nutritious, especially as they contain important macro and micronutrients such as protein, carbohydrates, vitamins, and minerals. Over time, breakfast cereals have evolved from just being a healthy breakfast option to an anytime snack, owing to innovations in flavors and formats.
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 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Changing consumer lifestyles and food habits present a key opportunity for growth in the breakfast cereals market. Players can leverage trends like consumers shifting to convenience foods and any-time snacking to drive market expansion. With people's busy schedules, there has been a rise in demand for snacks that offer quick nutrition without much preparation time. Breakfast cereals fit well within these emerging consumption patterns. Companies introducing cereals in portable, on-the-go packaging targeting consumers who prefer snacking throughout the day can capitalize on this opportunity. Innovation around product varieties, flavors, and formats catering to evolving preferences also allow companies to increase market outreach.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is medium as the breakfast cereals market requires high capital investments setting up processing plants. However, new private label brands introduced by retail giants pose a threat.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitutes and comparison shopping online. However, brand loyalty provides some market power to leading companies.
Bargaining power of suppliers: The bargaining power of suppliers is medium as key raw materials such as corn, wheat, and oats are commodities traded on exchanges. However, large buyers can impact prices.
Threat of new substitutes: The threat of new substitutes is high as convenient on-the-go breakfast options continue to emerge. Healthier substitutes such as eggs, yoghurt also gaining popularity.
Competitive rivalry: Competitive rivalry is high given the numerous global and local players fighting for market share.
SWOT Analysis
Strengths: Brand awareness and loyalty for top players. Varied product portfolios suiting diverse tastes.
Weaknesses: Commodity nature of raw materials impacts margins. Vulnerable to economic slowdowns affecting disposable incomes.
Opportunities: Expanding into fast growing Asian and African markets. Developing organic, gluten-free, high protein variants caters wellness trends.
Threats: Consolidation among retailers increases bargaining power. Regulatory pressure on ingredients affects product development.
Key Takeaways
The global Breakfast Cereals Market Growth is expected to witness high growth over the forecast period of 2024 to 2031.
North America dominates currently due to heavy consumer spending and preference for convenience foods. Central and Eastern Europe regions are projected to offer lucrative opportunities due to increasing urbanization and Western influences on diets.
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., among others. Regional players catering to local tastes through customized offerings present stiff competition. Private label brands intensify competition by undercutting prices of leading brands. Manufacturers focus on expanding into developing Asian and African countries through tie-ups with local retailers. New product launches catering to customer preferences for natural, vegetarian and gluten-free options also aid market expansion. The commodity nature of cereals limits scope for premiumization. However, focus on branding and targeting specific consumer segments enhances realizable prices.
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