The
global breakfast cereals market is consolidated with the top three
players – Kellogg’s, General Mills, and CP – accounting for 50%
of the market in 2012. The threat of substitutes is extremely high
for existing companies from breakfast options such as fruits, toast,
and eggs. There exists low product differentiation and a negligible
switching cost, increasing the intensity of rivalry among players.
The threat of new entrants will likely be low as existing players
have a strong foothold and global presence, states Transparency
Market Research in its new study. As such, new players will find
developing a unique brand image a challenge when entering the market.
Supermarkets, hypermarkets, and other retail stores are key buyers of
breakfast cereals and the bargaining power is low to medium, varying
from region to region.
According
to the report, the global breakfast cereals market is expected to
rise from US$36.7 bn in 2015 to US$43.2 bn in 2019. On the basis of
product, the ready to eat (RTE) cereals segment is anticipated to
lead and will be worth US$35.39 bn by 2019. By geography, North
America will continue to retain its leading position and account for
33% of the market by 2019. The U.S. is the key market for breakfast
cereals in North America and is expected to be worth US$9.50 bn by
2019.
View
exclusive Global strategic Business
report:http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=1802
Growing
Number of Convenience Stores to Aid Growth of Breakfast Cereals
Market
The
growing number of convenience stores is one of the key contributors
boosting the sales of breakfast cereals as people prefer shopping for
household utilities and foodstuff under one roof. In addition to
this, convenience stores provide more visibility to food brands. The
breakfast cereals market is also benefitting from the high demand
from emerging economies in Asia Pacific. As consumers in these
countries are switching from traditional breakfast items to wholesome
breakfasts owing to increasing health consciousness, the breakfast
cereals market is expected to grow tremendously.
Opting
for Traditional and Snack Breakfasts to Remain a Hurdle for Market
Palm
oil, which is essential for the production of breakfast cereals is
specific only to a few limited areas as its plantation requires a
particular type of climate. Around 90% of palm oil plantations are
found in countries such as Malaysia and Indonesia. This is creating a
problem in the procurement of palm oil and becoming a hurdle for the
global breakfast cereals market. “Another factor hampering the
growth of the market is the busy lifestyles of people compelling them
to opt for snack breakfasts to save time,” states a TMR analyst. In
addition to this, most countries have their own traditional
breakfasts. For instance, congee is the traditional breakfast item in
China, whereas bread and other flour-based foods are preferred in
India. These alternatives remain a hurdle for the breakfast cereals
industry.
New
Taste and Flavors in Breakfast Cereals to Create Opportunities in
Breakfast Cereals Market
Most
manufacturers of breakfast cereals are targeting children and the
younger population base to help drive sales. Other age groups offer
growth opportunities to players operating in the global
breakfast cereals market. In addition to this, products with new
tastes and flavors will widen the scope of the market. Companies such
as Kellogg’s have targeted the growing number of women consumers in
Asia and thus, launched a Special K range of cereals.
This
information is based on the findings of a report published by
Transparency Market Research, titled “Breakfast Cereals Market -
Global Industry Analysis, Size, Share, Growth, Trends and Forecast,
2013 - 2019.”
The
global breakfast cereals market is segmented as follows:
Product
type:
- Hot Cereals
- Ready to Eat Cereals
Regions:
- Europe
- North America
- Asia Pacific
- Rest of the World
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