Emerging markets are growing in importance to breakfast cereal makers: Bonafide Research
Nov, 01

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Emerging markets are growing in importance to breakfast cereal makers: Bonafide Research


Breakfast has traditionally been a home-cooked meal, but a change in lifestyle according to the demands of rapid modernization has made breakfast cereals a virtually irreplaceable commodity in the modern kitchen. Increasing adoption of the Western lifestyle all over the world is the prime driver for the global breakfast cereal market. Today, breakfast cereals can be segmented into ready-to-eat cereals and hot cereals. The preparation time in the ready-to-eat cereals is almost nil, while on the other hand, hot cereals require time to get cooked before they can be consumed. Breakfast was traditionally a sit-down meal in most markets, but is now often eaten hurriedly or on the go in the form of snack bars or ready to eat breakfast cereals. Ready-to-eat cereals are made up with corn flakes, wheat or puffed rice. According to recently published report of Bonafide Research "India Breakfast Cereal Market Overview", multinational cereal makers are ramping up sales in developing countries such as Africa, Asia and elsewhere. The giants are making the overseas push to offset lackluster sales in the U.S. and parts of Europe as consumers increasingly avoid sugar-laden breakfasts in favor of fresher, faster and more portable foods. Cereal sales in the U.S., by far the biggest market with around one-third of the global business, have been sluggish for several years as more consumers favor protein-heavy meals they can eat on the go. Emerging markets are growing in importance to cereal makers as more residents in those countries move to cities and have less time and inclination to make traditional warm breakfasts. As middle classes emerge, consumers have more disposable income and want more variety in their food. The Asia Pacific market for breakfast cereals is witnessing a dramatic rise in demand owing to increasing prevalence of the modern, hectic lifestyle and shift towards healthier breakfast alternatives. However, product innovation is vital in order to tap into different cultural expectations and consumer habits. In South Africa, Kellogg introduced Corn Flakes Instant Porridge a few years ago after discovering that some consumers were boiling its usual corn flakes into a soggy and unappetizing mess. This was because many people traditionally had hot porridge for breakfast and thought that corn flakes should be prepared in the same way. In Thailand, a company called Cereal Partners Worldwide, a joint venture between food companies Nestl? and General Mills, sells a single-serve packet of cereal that comes with a paper bowl and plastic spoon because that is the way consumers are used to eating a rice-based breakfast. In the South American nation of Columbia, Kellogg sells cereals in packs attached to yoghurt because local consumers tend to prefer yoghurt over milk. In India, Kellogg’s Corn Flakes include traditional flavours such as unsweetened mango and savoury pongal, a mixture of rice, milk, cane sugar and coconut.