The European breakfast cereal market is growing at a CAGR of 4.2% during the forecast period (2020-2025).
- The growth of the market is mainly driven by the changing food habits and influence of western culture on dietary patterns of consumers, as it provides a convenient solution to readily accessible food that optimizes the ease of consumption without further preparation. Also, an increase in health awareness among people globally, making consumers preferring towards highly nutritious food on a regular basis is further fueling the market. Furthermore, the robust growth of convenience stores that promotes brand visibility is driving the growth of the breakfast cereals market.
- However, the market is stagnated due to the consumer's equal inclination towards traditional breakfast foods, which is, therefore, restraining the growth of the market.
Key Market Trends
Rising Demand For Ready-To-Cook Breakfast Cereals
The ready-to-cook market that includes products such as muesli, granola, and other hot cereal products is growing rapidly. Hot cereals include products like oats, oat bran, wheat bran, and porridge. Among hot cereals, oats have gained high acceptance and popularity, owing to the rising consumers' awareness of the consumption of health benefits of grains. Whole grain-based ready-to-cook cereals are leading the market owing to the value-addition in terms of micronutrients in these products. Also, the leading companies are trying to blend organic and healthy ingredients in order to boost the sales of breakfast cereals. In addition, the manufacturers are also utilizing traditionally grown cereal grains such as quinoa to create innovation in breakfast cereal products. For instance, Continental Food's brand, Erasco, offers a wide range of ready to cook products including Baked Beans, Balkan rice, Cabbage Rolls, and others.
France to Witness Significant Growth in the Region
France is witnessed to have the fastest-growing market for breakfast cereals in Europe. Growing health concerns and increasing health issues such as diabetes, obesity, and digestive disorders are supplementing the growth of this region. Moreover, product & packaging innovations coupled with a high adoption rate of new products in countries in the region are estimated to play a key role in increasing the demand for the product over the forecast period. Quinoa Crack is one such company that has gained higher sales growth in France by offering quinoa-based gluten-free, super snacking solutions.
The European market for breakfast cereal is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. For instance, in 2018, Kellogg’s introduced “traffic light” labeling for most of its cereal packaging including Coco Pops, Crunchy Nut, Corn Flakes, Rice Krispies, Frosties and Special K in Britain. Traffic light labels show whether levels of sugar, salt and fat are high, medium or low using red, amber and green traffic light colors. Some of the key players dominating the market include Kellogg Co, General Mills, MTR Foods Pvt. Ltd., and Continental Foods among others.
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