Breakfast cereal is a food product made from processed cereal grains and often eaten for breakfast, primarily in Western societies. It is most often mixed with milk, yogurt, or fruit. Some companies promote their products for the health benefits from eating oat-based and high-fiber cereals. In the United States, cereals are often fortified with vitamins but can also lack many of the vitamins needed for a healthy breakfast. A significant proportion of cereals are made with high sugar content. Many breakfast cereals are produced via extrusion.
Breakfast cereals may also be puffed, flaked or shredded. The cereal may also be coated in chocolate or frosting before it is dried.
The global breakfast cereal market size was valued at USD 37.44 billion in 2016. It is projected to expand at a CAGR of 4.3% from 2017 to 2025. Growing popularity of on-the-go breakfasts, coupled with surging demand for organic cereals and rising health awareness among consumers, is one of the key trends accelerating market growth.
The global breakfast cereal market report has been segmented on the basis of product type, source, and region. On the basis of product type, the market is segmented into hot cereals and ready-to-eat cereals. Ready to eat breakfast segment dominates the global market in terms of revenue and expected to maintain its dominance over the forecast period, owing to low cost and increasing demand for convenient food products among consumers.
Breakfast options such as biscuits and cereal bars are anticipated to stoke market growth. Besides this, expanding base of health-conscious consumers and rising purchasing power are estimated to provide a fillip to the market. In recent times, a large number of consumers are focused on reducing calorie intake by cutting down their portion sizes and replacing traditional breakfast options with breakfast cereals.
Ready-to-eat cereals are projected to lead the market as it is an on-to-go product and is convenient for consumption in working population. Also, hot cereals are expected to show a rapid increase in CAGR as it provides an organic and whole grain based cereal breakfast diet. Further, the market on the basis of the distribution channel is divided into convenience stores, hypermarkets and supermarkets, online channel and others.