The North America breakfast cereal market is growing at a CAGR of 4.6% during the forecast period (2020 - 2025).
- The growth of the market is primarily 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.
- Furthermore, consumer's preference towards nutritious and healthy food on a regular basis is driving the market. Also, 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-Eat Breakfast Cereals
Ready-to-eat breakfast cereal dominates the whole market owing to the convenience solution it offers to the consumers. The market is mostly driven by the consumers having a busy lifestyle as these are the processed grain formulations suitable for consumption without further cooking. Whole grain-based ready-to-eat 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.
Convenience Stores Sales to drive the Regional Market
Supermarket/hypermarket and convenience stores retail sale constitutes a very significant share in the market but is growing at a steady rate. Organic, natural and health claim on breakfast cereals offer a potential future for baked products. Furthermore, the expansion of retail distribution channels is another factor for rising sales in rural and tier-II cities. However, increased competition from artisanal, food service offering varieties of fresh breakfast affected the packaged breakfast cereals market sale in the region.
The North American 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. Key players dominating the market in North America include General Mills Inc., Kellogg NA Co., PepsiCo, Inc., and Bob’s Red Mill Natural Foods, among others.
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