Breakfast Cereals Market - Forecasts from 2023 to 2028

The breakfast cereals market is expected to grow at a CAGR of 4.21%, from an estimated market size of US$26.930 billion in 2021 to US$35.935 billion in 2028.

The breakfast cereal market is a large and competitive industry that consists of various types of breakfast cereals. Breakfast cereals are a popular and convenient breakfast option for people worldwide, and they come in multiple flavors, shapes, and sizes. Cereals are typically made from grains such as wheat, oats, and corn, and they can be served with milk, yogurt, or fruit. The breakfast cereals market is driven by various factors, such as changing consumer lifestyles, increasing health awareness, and the availability of a wide variety of cereal options. Manufacturers of breakfast cereals are constantly innovating to offer new and unique flavors and textures to appeal to consumer tastes. Major players heavily influence the breakfast cereal market, but many smaller companies offer unique and niche cereal products. The industry is highly competitive, and companies constantly look for ways to differentiate themselves and gain a competitive edge. In general, the breakfast cereal market is expected to grow in the coming years, driven by factors such as the increasing demand for healthy and convenient breakfast options, the introduction of new and innovative cereal products, and the expansion of the market into new regions.

By launching new and improved products, these companies can cater to evolving consumer preferences, resulting in increased sales and revenue growth. This growth potential also enables these companies to expand their customer base and distribution networks, thereby driving revenue growth. Thus, the introduction of new products by key market players is a crucial factor in driving the revenue growth of the breakfast cereals market.

The breakfast cereals market is driven by investments and R&D by key companies.

Investments and new product launches by key players act as major driver for the breakfast cereals market, as they can lead to increased competition and innovation within the industry. When companies invest in research and development to create new breakfast cereal products, they can attract new customers and retain existing ones by offering unique and appealing options. This helps to drive growth and revenue for the company. Moreover, when new and innovative products are launched, it sparks interest and excitement among consumers, leading to increased sales and overall market growth.

Market Developments:

• In December 2022, Kwality, also known as Pagariya Food Products Pvt. Ltd, introduced a new line of low-priced and wholesome breakfast cereals in India designed to offer a more inclusive assortment of nutritious morning meal alternatives. The range, which starts at INR 49, comprises six options: Fruit Rings, Muesli Crunchy Almond & Raisins, and Corn Flakes, and is devoid of refined wheat flour. The rollout of this new selection is a component of Kwality's aim to make healthy cereals available to a broader audience.
• In June 2022, Magic Spoon, a breakfast cereal manufacturer based in the United States, secured US$85 million in a Series B funding round, bringing its total funding to US$100 million. The investment was utilized to increase the company's growth beyond its present direct-to-consumer model and into the provision of brick-and-mortar retail and to expedite growth. Target became the first retailer to carry the brand. Magic Spoon offers high-protein, low-carbohydrate, gluten-free, soy-free, and keto-friendly cereals and cereal bars in flavors like Fruity and Peanut Butter.
• In September 2022, Quaker, a prominent brand in India's oats market, introduced a new breakfast offering in the ready-to-eat (RTE) cereal segment called Quaker Oats Muesli. This product offers a nourishing and flavorful breakfast experience, consisting of a blend of five grains and 22% fruit, nuts, and seeds, available in two flavors: Fruit & Nut and Berries & Seeds. The product provides a rich source of protein and fiber and aims to offer "Fuel for the Real Fit" to consumers who are mindful of their health. According to the company, the launch is a response to the growing trend of consumers missing breakfast due to increased household chores, a delayed start to the day, and the need for convenient and wholesome breakfast options.

North America accounted for a major share of the global breakfast cereals market.

The breakfast cereals market has been segmented by geography into North America, South America, Europe, Middle East and Africa, and Asia Pacific.

The growth can be attributed to the rising demand for convenient and healthy breakfast options and the availability of a wide range of cereal products with unique flavors and nutritional benefits. Breakfast cereals have emerged as a popular choice among US consumers, especially those leading busy lifestyles who prefer quick and easy breakfast options. With a growing demand for healthier alternatives, breakfast cereals are gaining traction due to their high nutrient value and ease of consumption. In recent years, consumers have become increasingly health-conscious, seeking food products that align with their health goals. Breakfast cereals are marketed as a healthy breakfast option providing essential nutrients and energy. Moreover, breakfast cereals are convenient, require minimal preparation time, and can be consumed with milk or yogurt.

Market Segmentation:

BY TYPE

• Hot cereals
• Ready-to-eat cereals

BY PRODUCT

• Corn-based breakfast cereals
• Others

BY DISTRIBUTION CHANNEL

• Online
• Offline
• Supermarkets
• Convenience stores
• Others

BY GEOGRAPHY

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• South Africa
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Australia
• Others