The Growing Breakfast Cereals Market is driven by Increasing Health Consciousness

The breakfast cereals market provides nutritious and convenient breakfast options to consumers. Breakfast cereals contain essential vitamins, minerals, carbohydrates and dietary fibers which help provide energy for the day. Popular varieties include flakes, oats, cornflakes which can be eaten directly from packets or mixed with milk. The global market for breakfast cereals 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 from 2024 to 2031.

Key Takeaways

Key players operating in the Breakfast Cereals Market Size includes Kellogg's, General Mills, Nestle and Post Holdings which account for a majority share globally. Kellogg's and General Mills are the leader breakfast cereals companies worldwide.

The demand for breakfast cereals is growing rapidly due to increasing trends of consumption of convenience breakfast foods globally. The busy lifestyles and desire for nutritious yet easy to make breakfast options is driving sales of cereal products. Various types of healthy cereal are launched catering to the varying needs of consumers.

Major cereal companies are also expanding globally by introducing products tailored to regional tastes, acquiring local brands and establishing manufacturing plants. The breakfast cereals market is penetrating developing regions at a fast pace through strategic expansion plans of key multinational players.

Market drivers

The key driver fueling the breakfast cereals market is the increasing health consciousness among consumers. People are more inclined towards healthy breakfast options containing whole grains, fibers and low sugar. Growing prevalence of lifestyle diseases has prompted consumers to focus on nutrition and wellbeing. Breakfast cereals fitted for diabetics, weight watchers etc have gained popularity. The health benefits of cereals like lowering cholesterol, managing blood sugar and weight management are driving its demand.

The current geopolitical instability arising from the Russia-Ukraine conflict is significantly impacting the growth of the global breakfast cereals market. The ongoing war has disrupted international trade and supply chains, leading to increased costs of raw materials like wheat and corn for breakfast cereals manufacturers. Rising inflation and economic uncertainty caused by the war is also reducing consumer spending power in many European countries, dampening demand growth. Similarly, lockdowns in China due to its zero-Covid policy are creating new challenges for manufacturers in terms of logistics and trade.