According to FMI (Future Market Insights), the global breakfast cereal market is anticipated to reach US$ 68.87 billion by 2033, with a projected CAGR over the next decade of 4.6 percent.
Breakfast cereals have undergone a massive shift as consumer preferences have become more often aligned with a desire and demand for healthier, high-fibre, satiating breakfast options.
Consumer drive for convenience has contributed to the growth of breakfast cereals as time-poor, health-conscious consumers search for options aligned with their schedules and dietary needs.
Consequently, health consciousness has created a demand for clean labelling, with consumers leaning towards products emphasising minimal, natural, and recognisable ingredients. To remain competitive, manufacturers must ensure breakfast cereals reflect these values.
Challenges facing manufacturers and businesses in breakfast cereals are directly related to growing health knowledgeability, as consumers are more vigilant in checking the sugar and preservative content of products and fibre density. Elevating the culinary experience for consumers of breakfast cereals will also be essential to capitalise on, as improving economic conditions will drive consumers to more sophisticated dietary options.
Finally, the market is dominated by established players, with limited opportunities for newcomers or smaller players attempting to attract consumers with their diversity of products.
Ready-to-eat cereals dominate the category, with the lion's share of 65.5 percent preferred for their improved nutrient intake, lower fat, sucrose, and convenience.
Australia is estimated to experience the most significant growth over the next decade with a CAGR of 14.6 percent, Germany with a CAGR of 9.2 percent, and the USA and Japan with a CAGR of 7.9 percent.
The USA is the largest consumer of breakfast cereals, which can be attributed to the breakfast options' enduring popularity and wildly diverse and extensive portfolio of flavours available for consumers to choose from.
Established players must continue to innovate flavours to remain market-relevant, with more comprehensive health-centric options and convenient packaging to align with consumers' ethical and daily needs.
