Ready to eat cereal industry

What changes have lead to the current industry crisis?

Ready to eat cereal industry

It is projected to expand at a CAGR of 4. Growing popularity of on-the-go breakfasts, coupled with surging demand for organic cereals and rising health awareness among consumers, is one of the key trends accelerating market growth.

Increasing influence of westernization on food habits of middle-class population is also contributing significantly towards the demand for breakfast cereals in Asia Pacific.

Advancing food retail infrastructure along with rising awareness regarding health benefits of consuming grain-based breakfasts is further supporting the growth of the market. Breakfast cereals are available in different variety, but the essential ingredient is grains. Commonly used grains include oats, rice, barley, wheat, and corn.

Few hot cereals such as oatmeal does not comprise any other ingredient while other variants may include coloring agents, yeast, salts, minerals, vitamins, sweeteners, and food preservatives. Palm oil is a vital ingredient utilized in the processing stage.

Sweeteners used in the manufacturing of breakfast cereals include malt, which is obtained from barley, brown sugar, white sugar, and corn syrup. A few natural cereals are also sweetened with concentrated fruit juices. Other types of ingredients incorporated to enhance the flavor includes dried fruit, nuts, and marshmallows.

Moreover, essential vitamins and minerals are also added to them to replace those nutrients that are lost during the process of cooking. Emerging economies are witnessing a paradigm shift in the purchasing behavior and eating habits of customers. Rapid urbanization and growth of middle-class population in these economies are resulting in changing lifestyle and growth in demand for on-the-go options of meals.

As cereals are considered to offer numerous health benefits and are easy to prepare, they are witnessing augmented demand from consumers worldwide.

Demand for breakfast cereal is restrained by huge availability of alternatives. Most consumers prefer consuming eggs, smoothies, frozen waffles, yogurt, sausage, puddings, and other traditional breakfasts, which are healthier and are made up of fresh ingredients.

Moreover, easier availability of convenient low-cost and nutritious meal options is posing a threat to the demand for cereals. Few health-conscious consumers tend to prefer other breakfast alternatives on account of presence of sugar as well as other food preservatives, which are added to improve the shelf life of these products.

Rising demand for on-the-go meal options is driving the consumption breakfast cereal bars as well as biscuits. Moreover, increasing awareness regarding easy, fast and inexpensive meal options offered by RTE cereal category is boosting the overall market.

The market is also observing upswing in adoption of cereal bars among kids. Attractive packaging, effective advertising strategies, and improved taste are among key factors fueling its demand. However, in recent times, the demand has slowed down on account of presence of high sugar and preservative contents in cereal bars.

The company also incorporated vitamin D into its snack bars to raise the nutritional value of the product. Hot cereals are expected to register the fastest growth during the forecast period. Rising adoption of nutritious meal options in breakfast is spurring the demand for multi-grain cereals including grains, seeds, and beans.

Vast benefits of including these organic and whole grain based cereals in the diet are further escalating the demand for hot cereals.

Moreover, incorporation of exotic flavors into the product variants, resulting in innovative tastes, is anticipated to rev up the demand, especially among kids. Distribution Channel Insights Supermarket, convenience stores, E-commerce, and others are the major distribution channels reviewed in the report.

Insupermarket dominated the breakfast cereal market and is expected to maintenance its dominance until The number of supermarkets across the globe has witnessed a sharp rise in last few years.

Breakfast cereal - Wikipedia

Initially, their presence was concentrated in developed economies of North America and Europe, but now they have expanded their presence across Asia Pacific and the Middle East and Africa.

E-commerce is emerging as a prominent distribution channel in the global arena.

Ready to eat cereal industry

The segment generates considerable revenue from developed economies of North America and Europe on account of widespread adoption of internet and mobile phones.

Online channels provide better access to branded merchandise and deliver better shopping experience. They offer richer and personalized shopping experience to the buyer.

Online channels are attaining popularity among lifestyle users in developed regions. Regional Insights North America dominated the overall market infollowed by Europe.

Breakfast Cereal Market Size, Share | Industry Trend Report

Growing health concerns and increasing health issues such as diabetes, obesity, and digestive disorders are supplementing the growth of the region. Manufacturers are introducing healthier variants to attract huge consumer base.

Rapidly growing economies in Asia Pacific are leading a widening base of the populace indulged in busy lifestyles.Ready-to-eat breakfast cereal has historically been a stable and highly profitable industry, dominated by the Big Three of Kellogg, General Mills, and Kraft General Foods (Post).

R-T-E Cereal Breakfast Industry Name: Andres Gil Competitive Analysis and Strategy The ready to eat (RTE) cereal industry has grown steadily, with a compounded annual volume rate of three percent between and Ready to eat (RTE) was the leading product segment in , accounting for over % of the global revenue share.

The segment consists of bars, cornflakes, cookies & biscuits, and others. Rising demand for on-the-go meal options is driving the consumption breakfast cereal bars as well as biscuits.

Operators in this industry acquire raw materials such as corn, wheat, flour, sugar, malt extract and rice that are processed into ready-to-eat and hot cereals. They also purchase raw materials, such as plastic and paperboard containers, from other manufacturers for packaging purposes.

The Ready-To-Eat Breakfast Cereal Industry in (A) The ready-to-eat (RTE) breakfast cereal industry has been very successful for decades, achieving high returns and growth.

By , the US market alone has grown to $8 billion in sales, and billion pounds in volume.5/5(2). The Ready-To-Eat Breakfast Cereal Industry in (A) The ready-to-eat (RTE) breakfast cereal industry has been very successful for decades, achieving high returns and growth.

By , the US market alone has grown to $8 5/5(2).

Ready-to-Eat Food Market: Global Industry Analysis, Size and Forecast, to