Breakfast Cereal Market Size, Share & Trends Analysis Report By Product (Hot Cereals, Ready-to-eat), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, E-commerce), By Region, And Segment Forecasts, 2024 - 2030

Breakfast Cereal Market  Size & Trends

The global breakfast cereal market size was estimated at USD 39.56 billion in 2023 and is expected to grow at a CAGR of 3.5% from 2024 to 2030. Consumers increasingly seek high-protein, whole-grain cereals with added benefits like fiber, probiotics, and vitamins. This shift has led to new product launches tailored to specific dietary needs, including gluten-free, vegan, and organic options. In addition, the rise of convenient on-the-go breakfast choices such as muesli, flax seeds, oats, granola, and breakfast bars further drives market growth. Another significant trend in the market is the growing popularity of plant-based breakfast cereals. Veganism and vegetarianism are becoming more popular, and consumers are looking for breakfast cereals that are free from animal products. This has led to the growth of plant-based breakfast cereals made from ingredients, such as oats, quinoa, and almond milk.

Moreover, the increasing number of single-person households is also contributing to the growth of the breakfast cereal market, as these households are more likely to purchase breakfast cereals that are convenient and easy to prepare. Consumers across the globe are increasingly looking for breakfast cereals that are easy to prepare and consume. This has led to the growth of pre-packaged breakfast cereals and on-the-go breakfast solutions. Moreover, the growing prevalence of celiac disease and other food intolerances has also fueled demand for gluten-free and specialty cereals. Rapid urbanization and growth of the middle-class population in developing economies have resulted in changing lifestyles and increased demand for easy-to-prepare and on-the-go options of breakfast cereals.

The breakfast cereal market is witnessing a surge in demand for organic cereals, driven by increasing awareness of their health benefits and a growing preference for natural and sustainable food choices. Consumers are becoming more discerning about the ingredients in their food, seeking options that are free from artificial additives, preservatives, and genetically modified organisms (GMOs). This shift toward organic foods reflects a broader trend of prioritizing health and well-being, with consumers actively seeking food products that align with their values and contribute to a healthier lifestyle.

Market Concentration & Characteristics

The breakfast cereals market has seen significant innovation, driven by consumer demand for healthier and more diverse options. Companies are increasingly focusing on developing products that cater to dietary preferences, such as gluten-free, high-protein, and low-sugar options. Innovations include the incorporation of superfoods, probiotics, and organic ingredients, as well as environmentally friendly packaging solutions. Technological advancements in food processing and ingredient sourcing enable manufacturers to create cereals with enhanced nutritional profiles and unique flavors.

The market has seen substantial merger and acquisition (M&A) activities driven by companies aiming to expand their market presence and diversify their product offerings. Larger corporations actively acquire smaller, innovative brands to enhance their portfolios and appeal to health-conscious and niche market consumers. This strategy allows established players to integrate new product lines that feature organic, gluten-free, or high-protein options, aligning with current consumer trends. M&A activities also help companies leverage economies of scale, optimize distribution networks, and boost their competitive edge in a crowded market.

Regulations are crucial in shaping the breakfast cereals market, particularly concerning nutritional labeling, health claims, and food safety standards. Governments and regulatory bodies enforce stricter guidelines to ensure that cereal products meet specific health and safety criteria. For example, the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) have implemented regulations that require clear labeling of ingredients and nutritional information. These regulations aim to protect consumers and promote transparency but can also pose challenges for manufacturers in terms of compliance and reformulation costs.

The breakfast cereals market faces competition from various substitutes, including breakfast bars, smoothies, yogurt, and other convenient breakfast options. These alternatives are often perceived as healthier or more convenient, appealing to time-strapped and health-conscious consumers. The rise of plant-based and protein-rich breakfast options also presents a significant challenge to traditional cereal products. Cereal manufacturers innovate with new flavors, added nutrients, and convenience-focused packaging to remain competitive.

Product launches in the breakfast cereals market are frequent, with companies introducing new products to cater to evolving consumer tastes and preferences. Recent trends include the launch of cereals with added functional benefits such as high fiber, probiotics, and protein. For instance, in 2023, Kellogg's and General Mills introduced new lines targeting health-conscious consumers, including keto-friendly and plant-based options. These launches are often accompanied by marketing campaigns highlighting the health benefits and unique ingredients of the new products.

Product Insights

The ready-to-eat (RTE) segment accounted for a share of 86.8% in 2023. The demand for convenient and on-the-go breakfast solutions has boosted the popularity of single-serve cereal packs and ready-to-eat granola bars, making it easier for busy individuals to grab nutritious breakfast options. Moreover, the availability of RTE cereals across various retail channels, including supermarkets and hypermarkets, convenience stores, and online platforms, has increased product accessibility and contributed to the overall market growth.

The hot breakfast cereal market is expected to grow at a CAGR of 4.7% from 2024 to 2030. The rising adoption of nutritious breakfast options is spurring the demand for multigrain cereals, including grains, seeds, and beans. The vast benefits of incorporating these organic and whole-grain-based cereals into diets are further driving the market growth. Moreover, incorporating exotic flavors in these breakfast cereal variants, offering better-tasting food options, will likely augment product demand in the kids segment over the forecast period.

Distribution Channel Insights

The supermarkets & hypermarkets segment accounted for a revenue share of 50.0% in 2023. Consumers also seek convenience and variety, fueling the popularity of ready-to-eat cereals and multi-grain options. Supermarkets and hypermarkets play a crucial role in meeting these demands by offering convenient shopping experiences and a wide selection of breakfast cereals from established and emerging brands. Initially, their presence was concentrated in the developed markets of North America and Europe, but now they have expanded their presence across Asia Pacific and Middle East & Africa.

The e-commerce segment is expected to grow at a CAGR of 5.6% from 2024 to 2030. The rise of online grocery delivery services like Instacart, Walmart, and Amazon Fresh has further accelerated e-commerce penetration in the breakfast cereal market. This has made it easier for consumers to purchase breakfast cereals online. Moreover, the proliferation of smartphones and high-speed internet access has enabled consumers to easily access and buy products online, including breakfast cereals. This convenience factor has fueled the growth of e-commerce sales. Besides, the COVID-19 pandemic also played a significant role, as consumers sought contactless shopping options.

Regional Insights

The breakfast cereal market in North America captured a revenue share of over 42.6% in 2023. The increasing health consciousness and convenience-oriented lifestyles characterize the regional market. Consumers increasingly seek nutritious and convenient breakfast options that align with their busy schedules. This has increased the demand for fortified breakfast cereals with high fiber content, whole grains, and added vitamins and minerals. Additionally, the growing popularity of plant-based diets has fueled the demand for vegan and gluten-free breakfast cereals. Moreover, growing health concerns and increasing health issues, such as diabetes, obesity, and digestive disorders, are major factors contributing to the regional industry growth.

U.S. Breakfast Cereal Market Trends

The U.S. breakfast cereal market faces intense competition due to massive product innovation from categories including energy bars, breakfast biscuits, yogurts, and fruit & nut bars. It holds a share of 87.1% of the North America market revenue. While traditional breakfast cereals remain popular, particularly among families with children, there is a rising demand for healthier and more innovative options. This includes cereals with added protein, fiber, and whole grains, catering to the active lifestyle and health-conscious consumers. For instance, in April 2023, Bob's Red Mill Natural Foods, Inc. launched protein oats made with whole grain rolled protein oats. These high-protein oats have no added protein powder and are grown from a special conventionally bred variety that contains up to 60 percent more protein than regular oats. They are also non-GMO project verified and gluten-free. Furthermore, the trend towards convenient and on-the-go breakfast options has increased the demand for ready-to-eat breakfast cereals, particularly single-serving pouches and snack-sized boxes.

Asia Pacific Breakfast Cereal Market Trends

The Asia Pacific breakfast cereal market is expected to witness a CAGR of 5.4% from 2024 to 2030. Factors including the rising popularity of convenience foods, the increasing workforce, and the changing lifestyles of consumers drive the regional market growth. As more people enter the workforce, they seek convenient, nutritious, on-the-go breakfast options. Moreover, rapid urbanization & industrialization, rising disposable incomes of consumers, and growing awareness of the health benefits of breakfast cereals further boost product consumption across the region.

The breakfast cereal market in China is expected to witness a CAGR of 5.9% from 2024 to 2030. The rising income and rapid urbanization in China have led to changes in consumer lifestyles, which have, in turn, promoted the shift in food consumption trends in the country. China has witnessed a significant increase in its per capita consumption of breakfast cereals in recent years. The growing urban expenditure on healthy food in the country is predicted to be a key driver of domestic market growth. Western eating habits highly influence Chinese consumers, likely driving a significant market demand. Moreover, they are willing to spend on premium and imported products, including breakfast cereals.

The Japan breakfast cereal market captured a revenue share of over 11.8% in 2023. The Japanese breakfast cereal market presents a mix of traditional eating habits and evolving consumer preferences. While rice remains the cornerstone of most breakfasts, cereal has established a niche driven by factors like convenience, health consciousness, and a growing appreciation for Western breakfast options. The product demand is mainly driven by younger generations, who are more receptive to Western influences and appreciate the convenience and variety cereal offers. This is reflected in the growing popularity of granola, muesli, and other 'healthier' cereal options that cater to the rising trend of health-conscious eating.

The breakfast cereal market in India is expected to witness a CAGR of 8.2% from 2024 to 2030. The increasing urbanization and the rise of nuclear families in India have created a need for convenient and time-saving breakfast options. With their ready-to-eat format and quick preparation time, cereals have become an attractive choice for busy individuals and families. Moreover, the growing awareness of nutrition and health has spurred demand for fortified cereals, particularly amongst health-conscious consumers. Furthermore, the increasing presence of multinational brands in the Indian market has introduced a wider variety of breakfast cereals, catering to diverse consumer preferences. These brands have invested heavily in marketing and advertising campaigns, creating awareness and stimulating demand. The availability of premium and imported cereals has further expanded the market, appealing to consumers who seek unique and indulgent breakfast options.

Europe Breakfast Cereal Market Trends

The Europe breakfast market is expected to grow rapidly due to increasing health consciousness and convenience-driven lifestyles. Consumers are becoming more aware of the nutritional benefits of breakfast cereals, particularly their high fiber and nutrient content, which aligns with the growing demand for healthy and balanced diets. In addition, the convenience of breakfast cereals makes them an attractive option for busy individuals and families who seek quick and nutritious meal solutions. Established cereal brands face increasing competition from emerging brands that are capitalizing on consumer trends toward healthier and more innovative products. The growing presence of private-label brands also puts pressure on prices and drives market consolidation. To stay competitive, cereal manufacturers focus on product innovation, strategic partnerships, and marketing campaigns that highlight the unique benefits of their products.

The breakfast cereal market in Germany is expected to witness a CAGR of 4.7% from 2024 to 2030. While traditional breakfast cereals, like cornflakes and muesli, continue to hold their ground, the market is witnessing a growing demand for healthier and more convenient options. This shift is driven by increasing health consciousness among German consumers, who prioritize nutritional value, natural ingredients, and reduced sugar content. This has increased the popularity of organic, whole-grain cereals fortified with vitamins and minerals. Furthermore, the demand for plant-based and gluten-free options is rising, catering to specific dietary requirements and growing concerns about food sensitivities. In addition, the rise of online shopping and home delivery services has further contributed to convenience, allowing consumers to access a wide range of breakfast cereal options without leaving their homes.

The UK breakfast cereal market captured a revenue share of over 8.5% in 2023. Health consciousness is a key driver for market growth in the UK, with consumers increasingly seeking healthier options with lower sugar content and whole grains. This trend has led to a surge in demand for granola, muesli, and other 'better-for-you' cereals, often fortified with added nutrients and fibers. Kellogg’s Inc., Cereal Partners UK Ltd., and Weetabix Ltd. are among the major market players in the UK breakfast cereal market. Popular brands include Corn Flakes, Coco Pops, Special K, Cheerios, and Crunchy Nut.

Central & South America Breakfast Cereal Market Trends

The breakfast cereal market in Central & South America is projected to witness considerable growth over the forecast period. The growing emphasis on health and wellness drives the demand for fortified cereals, with consumers seeking options rich in vitamins, minerals, and high-fiber content. This is particularly evident in markets like Brazil and Argentina, where consumers are increasingly conscious of healthy eating habits. Concerns about obesity and chronic diseases have driven consumers towards healthier food choices. Breakfast cereals are perceived as a healthier alternative to traditional high-fat and sugary breakfast options. The presence of essential vitamins and minerals, fiber, and low sodium content in many breakfast cereals has attracted health-conscious consumers. Furthermore, gluten-free and low-sugar options have emerged to cater to specific dietary needs, further boosting the regional market growth.

Middle East & Africa Breakfast Cereal Market Trends

The Middle East & Africa region is witnessing a rising trend of urbanization, leading to busier lifestyles and increased demand for convenient and time-saving breakfast options. This trend is particularly pronounced in major cities like Dubai, Cairo, and Johannesburg, where consumers increasingly seek ready-to-eat breakfast solutions. In addition, westernization and exposure to global food trends drive interest in breakfast cereals, particularly among younger consumers who seek healthier and more diverse breakfast options.

Key Breakfast Cereal Company Insights

The breakfast cereals market is characterized by dynamic competitive dynamics shaped by a combination of factors including product innovation, regional production capabilities, and evolving consumer preferences. Leading manufacturers invest in R&D and technological advancements to provide cost-effective and quality products.

Market players are entering into joint ventures, partnerships, mergers, agreements, and acquisitions to strengthen their market position and expand their geographical reach. Companies are also focusing on raising awareness among consumers regarding the ambiguity concerning the ingredients used, while strictly adhering to international regulatory standards. 

Recent Developments

• In April 2024, GHOST, a lifestyle brand known for its sports nutrition products, energy drinks, dietary supplements, and apparel, entered the food category with a new high-protein cereal line. This venture was developed in collaboration with General Mills, experts in the cereal industry. The line includes GHOST PROTEIN CEREAL "PEANUT BUTTER" and GHOST PROTEIN CEREAL "MARSHMALLOW," both touted as the "Breakfast of Legends" due to their epic flavors and high protein content 

• In January 2024, Kellogg Co. ventured into the vegan space with its new Eat Your Mouth Off cereal brand, aiming to cater to the snacking habits of Gen Z shoppers. Eat Your Mouth Off, launched by the US food giant known for staples like Corn Flakes and Rice Krispies, is a plant-based, sugar-free, and protein-packed cereal. Available in two flavors, this brand was introduced as the company pivoted towards health-conscious younger consumers

• In October 2023, The Quaker Oats Co., a subsidiary of PepsiCo, Inc., launched its first breakfast cereal under the Quaker Chewy brand: Quaker Chewy Granola. This new cereal is available in two flavors—chocolate and strawberry. Quaker Chewy Granola is made with 100% whole grains, providing 34 grams of whole grains per serving, and features a mix of granola clusters and rice crisps. Each serving also contains 5 grams of protein and is free from artificial colors, preservatives, and flavors

Breakfast Cereal Market Report Scope

Global Breakfast Cereal Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global breakfast cereal market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Hot Cereals

  • Ready-to-Eat

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • E-commerce

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • UK

    • France

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa