Global Breakfast Cereals Market: Analysis By Product, By Ingredient Type, By Distribution Channel, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2029

Breakfast cereals are a type of grain food that is typically precooked or ready-to-eat, commonly consumed with milk or cream for breakfast. They are typically made from processed grains, such as wheat, corn, oats, rice, or barley, and are available in various forms, including flakes, puffs, granola, and muesli. These cereals are processed with added flavors and are often fortified with essential nutrients. Breakfast cereals serve as a convenient option for breakfast as compared to traditional home cooked breakfast; and it is also being consumed as snacks and fillers between meals. The global breakfast cereals market value in 2023 stood at US$48.15 billion, and is likely to reach US$ 66.65 billion by 2029.

One of the key drivers behind the increasing consumption of breakfast cereals is their convenience and versatility. The breakfast cereals market is also influenced by factors such as changing lifestyles, rising adoption of western food culture, shifting breakfast habits towards a healthier breakfast choices and availability of variety of flavors. Additionally, as economies develop and infrastructure improves, retail channels, including supermarkets, hypermarkets, convenience stores, and online platforms, also expand and so does the accessibility of breakfast cereals to consumers worldwide, further contributing to market growth. Furthermore, the breakfast cereals market is predicted to grow due to development of plant-based cereals, sustainable packing and sourcing, growth of e-commerce, tapping developing economies, increasing focus towards health and wellness, increasing demand for cereals as gift items etc. The global breakfast cereals market value is projected to grow at a CAGR of 5.62%, during the forecast period of 2024-2029.

Market Segmentation Analysis:

By Product: According to the report, the global breakfast cereals market is bifurcated into three segments based on the product: ready-to-eat, hot cereals and congee. Ready-to-eat segment acquired majority of share in the market in 2023 due to several factors. Ready-to-eat cereals are popular among consumers for their convenience and quick preparation, making them a preferred choice for busy lifestyles. Additionally, the ready-to-eat segment often offers a wide variety of flavors and options, catering to diverse consumer preferences and tastes. This variety and convenience have contributed to the dominance of the ready-to-eat segment in the global breakfast cereals market. While, hot cereals segment has been experiencing rapid growth in the global breakfast cereals market because of the growing awareness of the health benefits of whole grains and fiber-rich foods. Additionally, the versatility of hot cereals allows for customization with various toppings and flavorings, catering to diverse consumer preferences.

By Ingredient Type: According to the report, the global breakfast cereals market is bifurcated into five types of ingredients: wheat, rice, oats, barley and others. Wheat acquired majority of share in the market in 2023 due to the widespread availability and affordability of wheat grains, consumer preference for the familiar taste and texture of wheat-based products, and the perception of wheat as a wholesome and nutritious ingredient. While, Oats segment has been experiencing rapid growth in the global breakfast cereals market due to the increasing health consciousness among consumers as oats are considered superfood, rich in beta-glucan fiber, which can help lower cholesterol levels and promote heart health. Moreover, oats are versatile and can be consumed in various forms, such as hot cereals, granola, and muesli, further contributing to their popularity.

By Distribution Channel: According to the report, the global breakfast cereals market is bifurcated into four distribution channels: hypermarkets and supermarkets, convenience stores, e-retailers and others. Hypermarkets and supermarkets acquired majority of share in the market in 2023 as they offer a wide variety of breakfast cereal products from various brands, making them a one-stop shop for consumers. Additionally, hypermarkets and supermarkets often have a large customer base and are strategically located, making them easily accessible to a wide range of consumers. While, e-retailers segment has been experiencing rapid growth in the global breakfast cereals market due to the increasing adoption of smartphones and the internet, the comfort of home delivery, and the vast product variety available online. Also, e-commerce platforms offer lucrative discounts, and hassle-free shopping experiences, catering to the convenience-seeking behavior of modern consumers.

By Region: The report provides insight into the breakfast cereals market based on the geographical operations, namely, North America, Europe, Asia Pacific, Latin America and Middle East and Africa. The North America breakfast cereals market enjoyed the highest market share in 2023 due to several factors. Firstly, breakfast cereals have a long-standing tradition in North America, with high consumption rates and a wide variety of products available to consumers. Additionally, strong brand presence and marketing efforts by key players contribute to the market's dominance in the region. Furthermore, the convenience and versatility of breakfast cereals align well with the fast-paced lifestyles of North American consumers, making them a popular choice for breakfast.

While, Asia Pacific region has been experiencing rapid growth in the global breakfast cereals market. Changing dietary habits and lifestyles, driven by increasing disposable income particularly in urban areas, is driving the adoption of Western-style breakfast habits, including the consumption of ready-to-eat cereals. Additionally, the increasing awareness of health and wellness among consumers and the expanding retail landscape, including the growth of organized retail chains and e-commerce platforms, is making breakfast cereals more accessible to consumers across the region, further fueling market growth.

India is expected to register the fastest growth in the Asia Pacific's breakfast cereals market. India has a rapidly growing population, including a significant portion of young consumers who are increasingly embracing convenience foods like breakfast cereals. Secondly, urbanization and changing lifestyles, coupled with a shift towards more Westernized dietary patterns, are driving the demand for ready-to-eat breakfast options. Furthermore, increasing health awareness, the expanding retail landscape, including the growth of organized retail and e-commerce platforms, is making breakfast cereals more accessible to consumers across India.

Global Breakfast cereals Market Dynamics:

Growth Drivers: Increasing consumer demand for convenience serves as a significant growth driver for the breakfast cereals market due to several key factors outlined in the research. In today's fast-paced world, many consumers seek quick and easy breakfast options that fit into their busy lifestyles. Breakfast cereals offer a highly convenient solution, requiring minimal preparation time, which makes them an attractive choice for individuals and families looking for a nutritious and time-saving meal in the morning. This demand for convenience has been further amplified by the growing number of working professionals, dual-income households, and urbanization, all of which contribute to the preference for ready-to-eat breakfast solutions. Other factors driving the growth of global breakfast cereals market include rising disposable income, adoption of western dietary patterns, diverse product offering, increasing number of retail channel, increasing focus on health, etc.

Challenges: The global breakfast cereals market faces a major challenge due to shifting consumer preferences towards fresh, whole foods and alternative breakfast options like smoothies, yogurt, and protein-rich meals. This change is driven by increased health and nutrition awareness, leading people to seek more natural and wholesome breakfasts. Concerns over the high sugar content, artificial additives, and overall nutritional profiles of many traditional cereals are prompting consumers to scrutinize food labels and choose healthier options.

Trends: A key trend in the global breakfast cereals market is the rise of plant-based and alternative ingredients. Consumers are increasingly seeking healthier, sustainable, and environmentally friendly options, driving demand for vegan cereals made from whole grains, legumes, and starches, free from animal-derived ingredients. These cereals are often fortified with vitamins and minerals, and offer low-sugar, high-fiber, and high-protein options. Popular brands like Kashi and Nature's Path are leading this trend, catering to the growing preference for plant-based diets and ethical consumption. More trends are believed to augment the growth of breakfast cereals market during the forecasted period include, sustainability and eco-friendly practices, cereals used for snacking, rising sale of gift snack items, health and wellness trend, tapping developing regions etc.

Impact Analysis of COVID-19 and Way Forward:

The COVID-19 pandemic significantly impacted the breakfast cereals market, with increased demand for at-home consumption leading to a surge in sales initially. This shift in consumption patterns favored convenient options like breakfast cereals, with a focus on health-conscious choices. Manufacturers adapted by introducing new products and emphasizing nutritional benefits. However, supply chain disruptions posed challenges, affecting production and distribution. Overall, changing consumer behaviors and health concerns influenced market dynamics, shaping the industry's response to the pandemic.

Competitive Landscape and Recent Developments:

Breakfast cereals industry exhibits high fragmentation, with numerous players contributing to a diverse landscape. The market is characterized by many companies offering a wide range of quality products, creating a competitive environment. Key players of global breakfast cereals market are:

Kellogg's Company

General Mills Inc.

Cereal Partners Worldwide (Cpw S.A.)

PepsiCo, Inc.

Calbee

Bob's Red Mill Natural Foods

Marico Ltd.

Post Holdings Inc.

Bagrry India Pvt. Ltd.

Nature's Path Foods

BARBARA'S

Purelyelizabeth

Viz Branz Limited

The key players are constantly investing in strategic initiatives, such as adoption of new technologies, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in February 2024, Marico introduced four gourmet-style flavors in Saffola Oats range and in October 2023, The Quaker Oats Co., a subsidiary of PepsiCo, Inc., launched first breakfast cereal under the Quaker Chewy brand: Quaker Chewy Granola. Additionally, in February 2024, Nestle Cereals launched its first Nesquik media campaign to enhance its cereal offerings. The campaign promotes the Nesquik non-HFSS cereal range, which includes Nesquik Chocolate, Nesquik Mix, and Nesquik Choco Waves. It highlights the delicious taste and nutritional benefits of Nesquik cereals, which contain whole grains, B vitamins, calcium, and iron.