Summary

The global breakfast cereal market is characterized by steady growth, with a projected 2.9% CAGR from 2017-2023. The market was valued at $29.9 billion in 2018, driven largely by emerging economies where changing lifestyles are increasing demand for convenient meal options, such as cereal bars and ready-to-eat cereals. The United States remains the largest consumer and producer, with companies like Kellogg, PepsiCo, and General Mills commanding roughly half of the market share. European sales reached €9.15 billion in 2018, with Europe and North America holding a combined 69% market share. In the UK, organic products only account for 1.5% of food sales, but the organic market has been following an upward trend after recovering from a downturn between 2008-2011. As for consumer behavior, amidst declining average weekly cereal consumption per person (from 135g in 2006 to 120g in 2017), there's a trend toward healthier, more environmentally conscious eating habits. More consumers are seeking out organic, sugar-free, gluten-free, and palm oil-free options. In a highly competitive market space, leading players like Kellogg's are focusing on catering to millennials, who prefer hot cereals, muesli, and granola due to their healthy image and convenience. In terms of distribution, e-commerce and discount stores have seen over 30% growth in sales, taking a larger share from traditional supermarkets and hypermarkets. The UK's production value was £2.1 million in 2018, but the country faces a lack of interest in breakfast, with more individuals skipping the meal. Despite this, the UK maintains a profitable trade balance in this sector, with exports outpacing imports. The analysis also indicates a variety of breakfast cereals available, with a significant portion of ready-to-eat cereals dominating sales. Flakes experienced the largest decrease in sales, while muesli and granola segments saw the most significant growth. Cereal bars and other breakfast alternatives, such as eggs or yogurt, are notable competitors in the market..### Trends in Breakfast Cereal Consumption in the United Kingdom In the United Kingdom, breakfast cereal consumption has been witnessing a downward trend, with average weekly consumption per person dropping around 11% in a span of just over a decade—from about 135 grams in 2006 to approximately 120 grams in 2017. The reasons for this decline are multifaceted, with the hectic pace of modern life causing many Britons to skip breakfast entirely. In fact, around 35% of the population has been reported to forgo breakfast at least once a week. Despite the fall in consumption, the market for breakfast cereals in the UK is substantial, with about 27 million citizens consuming cereal during breakfast as of 2013. This figure has remained relatively stable in subsequent years, indicating a sizable constant consumer base, although it is notable that the frequency of cereal consumption has shifted with occasional consumers on the rise at the expense of regular consumers. The market's response to evolving consumer preferences has been distinctive, particularly among younger demographics. Younger individuals, especially those 21 years of age or younger, have shown an inclination away from cereals, with only 28% preferring cereals for their breakfast. Moreover, this age group is also most likely to skip the morning meal, with about 71% having skipped breakfast at least once in the week preceding the survey. As dietary habits shift towards more balanced breakfasts, the sales of fruits, eggs, porridge, and cereal bars have seen an increase—between 2016 and 2017, for instance, porridge sales increased by approximately 7.4%. The demand for healthier products is reflected in the type of cereal that is growing in popularity. Muesli and granola categories, perceived as healthier, have grown significantly—experiencing a compound annual growth rate of 6.5% from 2013 to 2018. The alteration in preferences is also apparent in the organic market. The UK, constituting Europe's fifth-largest market for organic products with sales over 2.3 billion euros as of 2017, has seen more than half of its population buying organic food, though a smaller proportion do so regularly. This suggests a reasonable level of interest in organic options, but one that is dwarfed in comparison to other European countries where organic consumption is more prevalent. In terms of distribution, the majority of breakfast cereal sales continue to occur in traditional retail settings like supermarkets and grocery stores, although online sales have seen a noticeable uptick, marking a growing trend in.### Key Breakfast Cereal Titans: Market Dominance and Emerging Challengers The landscape of the breakfast cereal market is not only dynamic but also competitive, marked by the presence of industry behemoths as well as the rise of new contenders that cater to changing consumer preferences. The competitive arena is characterized by the dominance of traditional giants and the growing influence of innovative brands capitalizing on the organic and health-conscious trends. **Kellogg's:** Often synonymous with breakfast cereals, Kellogg's stands as a colossus in this market sector. With a vast array of offerings ranging from classic cornflakes to the more indulgent chocolate-flavored varieties, Kellogg's has solidified its place on the breakfast tables around the world. Not resting on its laurels, Kellogg's has expanded its portfolio to include cereal bars and embraced online direct-to-consumer bulk sales methods, signifying its adaptability to modern consumer behaviors. **Weetabix:** A household name in the United Kingdom, Weetabix primarily secures its stronghold in the porridge and hot cereal segment. Known for its whole grain wheat biscuits, Weetabix has been a part of the traditional English breakfast for decades. In response to the demand for healthier options, Weetabix has positioned itself as a nutritious start to the day, appealing to health-conscious consumers. **Quaker Oats (Owned by PepsiCo):** Recognized for its classic oatmeal and porridge offerings, Quaker has been steering the hot cereal market for years. Its association with PepsiCo provides it with an extensive distribution network and a strong market presence. Quaker has managed to stay relevant by innovating with new flavors and convenient packaging formats tailored to busy lifestyles. **General Mills:** As the owner of widely celebrated brands such as Cheerios, General Mills competes fiercely with its array of ready-to-eat cereals. The company has also ventured into the bulk sales arena, meeting the needs of consumers who prefer to customize their cereal quantities while shopping. **Special K (A brand by Kellogg Co.):** Special K has made a name for itself by tapping into the diet and health segment of the breakfast market. With products often marketed towards weight management and fitness, Special K has become a preferred choice for those looking to maintain a balanced diet. The constant influx of smaller players focusing on organic, gluten-free, or sugar-free options reflects the evolving market. These new entrants are capitalizing on the latest dietary trends, contributing to the competitive pressure on the established brands. As consumer

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Summary and extracts

1 Market summary

1.1 The market at a glance

Breakfast cereals are a cluster of nutrients mainly cereals such as wheat, oats or corn with natural or artificial flavours, and sugar. Appeared in the second half of the 19th century [ stealingshare ... they generally accompany breakfast, in particular the traditional English breakfast in the form of boiled cereals, also known as porridge [ industrytoday ].

Marked by a plethora of products the breakfast cereal industry is dominated by very large players, such as Kellogg's in the world or Weetabix in the United Kingdom. New players have appeared on the market in recent years, thanks in particular to strong demand for products labelled organic or sugar-free / gluten-free [ stealingshare ]

However, the market is facing a growing lack of interest in breakfast, which is increasingly being missed by the British. Statistics] Competition is also very important, both in the market and in traditional English breakfast foods

Our study will include here breakfast cereals called ready-to-eat, and boiled ( porridge in English), as well as derivative products such as cereal bars .

 

1.2 Steady global growth

The global turnover of the breakfast cereal market represents **.* billion in ****. Industry experts anticipate a CAGR annual by *.*% for the period ****-****.

Source: ****

The market is being driven by emerging economies where there is a paradigm shift in customers' purchasing behaviour and eating habits.

Rapid urbanization and the rapid growth of ...

1.3 A stagnating market in the United Kingdom

National production of breakfast cereals is at United Kingdom to £*.* million (***) in ****, a figure that declines by *.*% each year over the ****-**** period . [***]

On the sales side, in ****, *.* billion pounds (***).

The figures for the next five years provided by Euromonitor give a CAGR of *% at constant price **** in terms of sales ...

1.4 A trend towards "healthy" products

The cereals segment at Muesli and Granola is the one that has experienced the most significant growth in recent years, from ***.* million pounds in **** to ***.* million in ****, or a CAGR of *.*% over this period, and projections at *.*% per year over the period ****-****. [***] In comparison, the flaked cereal segment (***)

Oatmeal or ...

2 Demand analysis

2.1 Consumer topology

Average consumption down

From ***g in **** to ***g in ****, average weekly consumption per person in the United Kingdom has fallen by **% in ** years[***]

Source: ****

In total, about ** million British people were consuming cereals during their breakfast in **** a constant figure in subsequent years, although occasional cereal consumers are becoming more and ...

2.2 New consumption habits

More balanced breakfasts

Consumption of fruit, eggs and especially porridge at breakfast increased between **** and ****, respectively by *.*%, *.*% and *.*%. Sales of cereal bars also increased by *.*% in the same year. [***]

The end of palm oil and added sugars

More and more environmental associations are calling for a reduction in palm oil consumption, ...

2.3 Focus on the organic trend in the UK

A market on a rising trend, but in retreat compared to some European countries

Source: ****

The United Kingdom appears as the *th largest European market for organic farming products with over *.* billion euros in **** . However, this position is due more to the number of consumers (***) than to acceptance by a large ...

2.4 Millennials seek healthier cereals

Demand for healthier products

The growing interest in nutrition and food quality has extended consumer demand to natural products with a low number of ingredients, "super foods" and gluten-free products. The milllenials, which are the main targets.. of advertising for breakfast cereals as they gain purchasing power, pay more attention to ...

3 Market structure

3.1 Market value chain and distribution

The observation of sales by distribution channel shows a clear trend in favour of e-commerce and discount stores, which saw their sales increase by more than **% over the period studied.

Source: ****

3.2 La progression des MDD s’effectue au détriment de Kellogg's

Source: ****

L’évolution des parts de marché des principaux acteurs du segment révèle plusieurs tendances et événements :

On observe une diminution progressive de Kellogs dont les parts de marché sont passées de **,*% à **,*%. Les marques de distributeurs ont connu une forte croissance sur la période jusqu’à devenir ...

3.3 Distribution channels

According to EuroMonitor, **.*% of breakfast cereals were sold in grocery stores, supermarkets and classic hypermarkets, the rest being sold on the Internet (***), the latter percentage up *.* points compared to ****

Source: ****

3.4 Change in raw material prices

Source: ****

We can see that the price curve for cereals (***) is V-shaped, with price peaks in **** and ****. There is also a weak price spread with common movements for the different cereals.

Evolution of prices by cereal United Kingdom, **** - ****, base *** = ****

 Source: ****

3.5 La production de céréales : une place importante dans le domaine agricole britannique et une diminution des cultures bio

Source: ****

Les cultures céréalières représentaient **% de la superficie cultivable en ****, soulignant l’importance de cette culture dans l’agriculture britannique. Le blé et l'orge étaient les cultures céréalières prédominantes, avec respectivement *,* et *,* million d'hectares. La superficie d'orge plantée au Royaume-Uni a diminué ...

4 Analysis of the offer

4.1 Product typology, composition and substitutes

Typology of products

The different varieties of breakfast cereals can be divided into different sub-segments. First, there are the children's cereals which are usually very sweet. [***]

Among the adult cereals, we find the one based on muesli It is a mixture of oats and other ingredients such as dried fruit or ...

4.2 Average prices recorded

The huge variety of cereals ranges from £*.* per kilo for private label corn fakes to over £** per kilo for Mama's cinnamon and apple porridge, depending on the brand's prices Tesco on their online grocery store.

The following table shows the average price per kilo of breakfast cereals sold by variety in ...

4.3 Substitute products and competition

Among ready-to-eat breakfast products, cereals are facing increasing competition [***]

Next comes crackers These are widely consumed in Great Britain with tea, which can usually be combined with butter or marmalade, as can toast. Kellogg's created their own product in the ****s, but soon abandoned it. [***]

Yoghurt and other dairy products s, ...

4.4 Bulk cereals

A new method of distributing cereals is also developing in several supermarkets, that of bulk cereals. Consumers can then freely and in any quantity they wish, use breakfast cereals presented in bottles in supermarkets Source: Whole Food Market The company General Mills which owns the Cheerios and Cookie Crisp brands, practices ...

4.5 Changes in consumption by type of product

   

Source: ****

It can be observed that the decrease in the consumption of cereals with a high fibre content was mainly in favour of muesli, whose consumption fell from ** grams in **** to ** grams in ****, representing approximately **% of total consumption over the year.

Source: ****

It can be noted that the growth of mesli ...

5 Rules and regulations

5.1 Organic Label

For a brand to obtain the Organic label on one of its products, it must meet the following conditions: At least **% of the product's components come from organic farming in accordance with EU regulations; the product complies with the rules of the official system of inspection; the product comes directly from ...

5.2 Obligations on packaging

There are many standards governing the production, labelling and distribution of food products. Most of them have been set up by the European Union (***) France Chamber of Great Britain ]

The Food Safety Act was implemented on January *, ****. It provides the framework for agri-food legislation. It aims to prevent the sale of ...

6 Positioning of the actors

6.1 Segmentation of players

  • Kellogg’s
  • Weetabix LTD
  • General Mills
  • Nestlé UK
  • Arrowhead Mills
  • Jordan Dorset Ryvita
  • Tesco
  • Sainsburys
  • Raisio
  • Nature’s Path
  • The Spoon
  • Deliciously Ella
  • Cereal Killer Café

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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Kellogg’s
Weetabix LTD
General Mills
Nestlé UK
Arrowhead Mills
Jordan Dorset Ryvita
Tesco
Sainsburys
Raisio
Nature’s Path
The Spoon
Deliciously Ella

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the breakfast cereal market | UK

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