The global breakfast cereal products market was valued at USD 67.1 billion in 2022 and is expected to expand at a CAGR of 4.2% from 2023 to 2030. The market is driven by the rising health consciousness among consumers, the growing demand for convenience foods, and the increasing popularity of breakfast cereals among adults. Consumers are increasingly focusing on their nutrition intake, making them opt for healthier breakfast options such as cereal products. Furthermore, an increasing number of working adults with busy lifestyles are opting for convenient breakfast foods such as breakfast cereals, which require minimal preparation and can be consumed quickly.

Innovative product launches are expected to fuel the demand for the market in the coming years. For instance, in April 2021, Kellogg’s launched a new range of breakfast cereals, including Super Mario Cereal and Special K Breakfast Toppers, which are made using plant-based ingredients. Furthermore, players are focusing on expanding their product portfolios, leveraging the trend of premiumization and fortifying their products with protein, vitamins, and other nutrients. For instance, in March 2021, Nestle launched Special K Protein Plus, which contains a blend of protein, fiber, and vitamins and is made with whole grain oats.

The increasing demand for healthy cereals and demand for organic, gluten-free, and non-GMO cereals is expected to drive the market in the near future. For instance, in April 2021, General Mills launched Cascadian Farm Protein Oats, which is made with organic, gluten-free oats and flaxseed and is rich in protein and fiber. The rising demand for flavored cereals is expected to boost the market in the coming years. For instance, in November 2020, Kellogg’s launched a new line of breakfast cereals in the Middle East, including Coco Pops and Choco Pops, which feature different flavors such as strawberry and marshmallow.

Furthermore, the growing demand for breakfast cereals as an on-the-go snack is expected to contribute to the growth of the breakfast cereals market. For instance, in April 2021, Post Holdings, Inc. launched Pebbles Fruity Poppin’ Pebbles, which is a cereal snack made with a mix of cereal pieces, fruit-flavored marshmallows, and real fruit pieces. The company claims that this new product is an ideal snack for families and is a great way to get their daily dose of fruits. Furthermore, the increasing number of promotional campaigns, such as discounts, offers, and free samples, is expected to boost the demand for breakfast cereals in the near future.

The ready-to-eat segment held the largest market share of over 60% in 2020. Increasing demand for healthy breakfast options and rising consumer awareness regarding the nutritional value of ready-to-eat cereals have been driving the demand for breakfast cereal products. Furthermore, the availability of a wide variety of flavors, innovative packaging, and convenience offered by ready-to-eat cereals are some of the key factors driving the segment’s growth.

The organic segment is anticipated to expand at the fastest CAGR of 9.3% over the forecast period. Growing consumer preference for organic food products, increasing health consciousness among individuals, and rising disposable incomes are some of the key factors driving the growth of the organic breakfast cereal products market. According to an article published by the San Francisco Chronicle, in April 2020, organic cereal sales were up by 8.2% in 2019, according to the Organic Trade Association. Furthermore, leading manufacturers are launching organic breakfast cereals in various flavors and sizes to meet the rising consumer demand.

The supermarkets and hypermarkets segment dominated the market in 2022, accounting for over 56.4% of the overall market share. The segment is anticipated to maintain its dominance owing to the increasing availability of breakfast cereals in supermarkets and hypermarkets. The availability of a wide range of products from different brands drives the segment growth. Moreover, the presence of in-store promotions and discounts further aids in the segment’s growth.

The online segment is expected to expand at the highest CAGR of 12.2% over the forecast period. The increasing adoption of online channels by consumers to buy breakfast cereals is driving the segment growth. The growing trend of online shopping due to the convenience of online shopping platforms is also anticipated to drive the segment. Moreover, companies are launching online websites and mobile apps to increase their customer base and sales. For instance, in May 2021, Quaker Oats launched its online store and mobile app in the U.S. to enable customers to order breakfast cereals online.

The hot cereals segment accounted for the largest revenue share of 65.4% in the year 2022. This type of cereal is made of grains such as wheat, oats, and rye, which are boiled in water or milk. Hot cereals are highly nutritious, and they are easy to digest, which makes them a popular choice among consumers. Additionally, the increasing demand for convenient and healthy breakfast options among consumers is expected to drive the segment’s growth.

The cold cereals segment is anticipated to expand at the highest CAGR of 6.2% over the forecast period. This segment is gaining popularity due to its convenient packaging, long shelf-life, and easy-to-cook features. Manufacturers are increasing their focus on product innovation and packaging to attract consumers. Additionally, the increasing demand for convenience and on-the-go breakfast foods is also driving the segment’s growth.

North America dominated the market and accounted for the largest revenue share of over 40.3% in 2022. Increasing demand for breakfast cereals from the health-conscious population is a key factor driving growth in this region. Moreover, the presence of major players such as Kellogg’s, General Mills, and Post Foods in this region is further expected to drive the demand for breakfast cereals. For instance, in May 2021, Kellogg’s launched a new breakfast cereal called ‘Life Cereal’ in the U.S.

Europe is expected to witness the second-fastest growth in the coming years. This can be attributed to the increasing number of initiatives undertaken by the European Union to promote healthy and balanced diets among consumers. In addition, growing disposable incomes, along with the introduction of innovative and healthy products, is expected to drive the market growth in the region. For instance, in July 2021, Nestlé launched a new breakfast cereal called ‘FITNESS Cereal’ in the UK.

In this part of the breakfast cereal products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your cereal business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The primary source of revenue for breakfast cereal products is the sale of the product. Additional sources of revenue may include advertising or promotional deals, or the sale of related merchandise.

Projecting Expenses
In this section, all the regular expenses related to keeping the cereal business running will be described. The list of operating expenses includes ingredients, packaging and shipping, wages, advertising and marketing, utilities, insurance policies, and others.

Some of the key companies operating in the breakfast cereal market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In July 2022, General Mills Inc. launched the Cascadian Farms Oatmeal Squares Cereal.

– In August 2022, Kellogg’s launched the Special K Protein Cereal, a high-protein breakfast cereal.

– In September 2022, Quaker Oats Company launched the Life Original cereal, made with whole grain oats, wheat and barley.

Some of the prominent players in breakfast cereal market include:

– General Mills Inc.
– Kellogg’s
– Quaker Oats Company
– Post Foods
– Nestle SA
– Cereal Partners Worldwide
– MOM Brands
– Malt-O-Meal Company
– Weetabix Limited
– Nature’s Path Foods Inc.

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global breakfast cereal products market based on product type, distribution channel, packaging type, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Ready-to-Eat
– Hot Cereal
– Cereal Bars
– Granola

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Convenience Stores
– Others

3. Packaging Type Outlook (Revenue, USD Million, 2017 – 2030)

– Boxes
– Bags
– Pouches

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the current market size of breakfast cereal products?
[A]: The global breakfast cereal products market is expected to reach USD 61.7 billion by 2027, growing at a CAGR of 5.0% over the forecast period 2020-2027.

[Q]: What are the key drivers of growth for this market?
[A]: The key drivers of growth for this market are the rising health consciousness among consumers, the increasing demand for convenience food, and the changing lifestyles of people in developed countries. Additionally, the introduction of new flavors, packaging, and product innovations are likely to boost the market.

[Q]: Who are some of the major players in this market?
[A]: Some of the major players in the global breakfast cereal products market include Kellogg’s, General Mills, Nestle, Quaker, and Post Holdings.

[Q]: What regions are expected to have the highest growth rate?
[A]: Asia Pacific is expected to be the fastest growing region during the forecast period, owing to the increasing demand for convenience food, changing lifestyles, and rising health consciousness among consumers in this region.

[Q]: What are the key trends in the breakfast cereal products market?
[A]: Some of the key trends in the breakfast cereal products market are the increasing use of natural ingredients and the rise of organic cereals. Additionally, the introduction of new flavors, packaging, and product innovations are likely to drive the market growth.