Summary of our market study

The global breakfast cereal market is characterized by steady growth, with a forecast CAGR of 2.9% between 2017 and 2023. The market was valued at $29.9 billion, driven largely by emerging economies where changing lifestyles are increasing demand for convenient meal options, such as breakfast cereals.hanges in lifestyles are increasing demand for convenient meal options, such as cereal bars and ready-to-eat cereals. The USA remains the largest consumer and producer, with companies such as Kellogg, PepsiCo and General Mills commanding around half the market share. European sales reached 9.15 billion euros, with Europe and North America holding a combined market share of 69%.

In the UK, organic products only account for 1.5% of food sales, but the organic market has followed an upward trend after recovering from a slowdown. In terms of consumer behavior, despite a drop in average weekly cereal consumption per person, the trend is towards healthier, more environmentally-friendly eating habits. More and more consumers are looking for organic, sugar-free, gluten-free and palm-oil-free products. In a highly competitive market, leading players such as Kellogg's are striving to meet the needs of millennials, who prefer hot cereals, muesli and granola because of their healthy image and convenience. In terms of distribution, e-commerce and discount stores saw sales growth of over 30%, taking a larger share from traditional supermarkets and hypermarkets.

The UK's production value was £2.1 million, but the country is facing a lack of interest in breakfast, with more and more people skipping the meal. Despite this, the UK maintains a profitable balance of trade in this sector, with exports exceeding imports. The analysis also shows that a variety of breakfast cereals are available, with ready-to-eat cereals dominating sales. Flakes saw the biggest drop in sales, while the muesli and granola segments experienced the strongest growth. Cereal bars and other breakfast alternatives, such as eggs or yoghurt, are notable competitors on the market.

Breakfast cereal consumption trends in the UK

In the UK, breakfast cereal consumption has been on a downward trend, with average weekly consumption per person dropping by around 11% in the space of just over a decade, from around 135 grams to around 120 grams. The reasons for this decline are manifold, with the hectic pace of modern life prompting many Britons to skip breakfast altogether. In fact, around 35% of the population do not eat breakfast at least once a week. Despite the fall in consumption, the market for breakfast cereals in the UK is significant, with around 27 million citizens consuming cereals for breakfast. This figure has remained relatively stable over the intervening years, indicating a fairly large constant consumer base, although it is notable that the frequency of cereal consumption has changed, with occasional consumers increasing at the expense of regular consumers. The market's response to changing consumer preferences has been distinctive, particularly among young people. Young people, especially those aged 21 and under, have turned away from cereals, with only 28% preferring them for breakfast.

What's more, this age group is also the most likely to skip the morning meal, with 71% having skipped breakfast at least once in the week preceding the survey. As eating habits evolve towards more balanced breakfasts, sales of fruit, eggs, porridge and cereal bars have seen an increase - for example, porridge sales have risen by around 7.4%. The demand for healthier products is reflected in the type of cereals that are gaining in popularity. The muesli and granola categories, perceived as healthier, have seen significant growth, with a compound annual growth rate of 6.5%. Changing preferences are also evident in the organic market. The UK, Europe's fifth-largest organic market with sales of over €2.3 billion, has seen over half its population buy organic food, although a smaller proportion do so regularly. This suggests a reasonable level of interest in organic options, but one that is minimal compared to other European countries where organic consumption is more widespread.

In terms of distribution, the majority of breakfast cereal sales continue to take place in traditional outlets such as supermarkets and grocery stores, although online sales have seen a notable increase.

The breakfast cereals market landscape is not only dynamic but also competitive, marked by the presence ofthe market landscape for breakfast cereals is not only dynamic but also competitive, marked by the presence of industry behemoths as well as the rise of new competitors responding to changing consumer preferences. The competitive arena is characterized by the dominance of traditional giants and the growing influence of innovative brands capitalizing on organic and health-conscious trends.

Kellogg's: Often synonymous with breakfast cereals, Kellogg's is a colossus in this market sector. With a wide range of offerings from classic cornflakes to more indulgent chocolate-flavored varieties, Kellogg's has cemented its place on breakfast tables worldwide. Not resting on its laurels, Kellogg's has expanded its portfolio to include cereal bars and has embraced online bulk sales methods, a testament to its ability to adapt to modern consumer behavior.
Weetabix: A household name in the UK, Weetabix is a major player in the porridge and hot cereals segment. Known for its whole-wheat cookies, Weetabix has been part of the traditional English breakfast for decades. In response to the demand for healthier options, Weetabix has positioned itself as a nutritious start to the day, attracting health-conscious consumers.
Quaker Oats (owned by PepsiCo): Known for its classic oatmeal and porridge offerings, Quaker has led the hot cereal market for years. Its association with PepsiCo gives it a vast distribution network and a strong market presence. Quaker has managed to stay relevant by innovating with new flavors and convenient packaging formats adapted to active lifestyles.
General Mills: Owner of well-known brands such as Cheerios, General Mills competes fiercely with its range of ready-to-eat cereals. The company has also ventured into bulk sales, responding to the needs of consumers who prefer to personalize their cereal quantities when shopping.
Special K (a Kellogg Co. brand): Special K has made a name for itself by tapping into the diet and health segment of the breakfast market. With products often aimed at weight management and fitness, Special K has become a preferred choice for those seeking to maintain a balanced diet. The steady influx of smaller players focusing on organic, gluten-free or sugar-free options reflects the market's evolution. These newcomers capitalize on the latest food trends, contributing to competitive pressure on established brands.

the breakfast cereal market - UK

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Summary and extracts

1 Market summary

1.1 The market at a glance

Breakfast cereals are a cluster of nutrients mainly cereals such as wheat, oats or corn with natural or artificial flavours, and sugar. Appeared in the second half of the 19th century [ stealingshare ... they generally accompany breakfast, in particular the traditional English breakfast in the form of boiled cereals, also known as porridge [ industrytoday ].

Marked by a plethora of products the breakfast cereal industry is dominated by very large players, such as Kellogg's in the world or Weetabix in the United Kingdom. New players have appeared on the market in recent years, thanks in particular to strong demand for products labelled organic or sugar-free / gluten-free [ stealingshare ]

However, the market is facing a growing lack of interest in breakfast, which is increasingly being missed by the British. Statistics] Competition is also very important, both in the market and in traditional English breakfast foods

Our study will include here breakfast cereals called ready-to-eat, and boiled ( porridge in English), as well as derivative products such as cereal bars .

2 Demand analysis

3 Market structure

4 Analysis of the offer

5 Rules and regulations

6 Positioning of the actors

6.1 Segmentation of players

Kellogg’s
Weetabix LTD
General Mills
Nestlé UK
Arrowhead Mills
Jordan Dorset Ryvita
Tesco
Sainsburys
Raisio
Nature’s Path
The Spoon
Deliciously Ella
Cereal Killer Café

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Latest news

Stripped of Yoplait, General Mills rides the snacking wave in France - 19/09/2024

- General Mills concentrates 63% of its sales in North America, totalling $12.5 billion.
- In 2023, the group has recorded near double-digit growth in its business, with investments increasing by 15% to 20%.
- The Nature Valley cereal bar has quadrupled its sales in four years, reaching 25% of the French cereal bar market, ahead of LU's Grany (9%), as well as Nestlé and Kellogg's.
- 42% of Nature Valley buyers are new consumers.
- The Häagen-Dazs ice cream division, equivalent in sales to Old El Paso products, benefits from increased visibility thanks to its 60 boutiques.
- Häagen-Dazs products sold outside North America and Japan are produced in Tilloy-lès-Mofflaines, France, and exported to 90 countries.

How General Mills and TotalEnergies are developing the circular economy around the BioBéarn site - 15/07/2024

Food manufacturer General Mills, which owns a Géant Vert canning plant near Labatut (Landes), supplies 50% of the inputs to the BioBéarn site (Pyrénées-Atlantiques), the largest methanizer operated by TotalEnergies in France

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Kellogg’s

Weetabix LTD

General Mills

Nestlé UK

Arrowhead Mills

Jordan Dorset Ryvita

Tesco

Sainsburys

Raisio

Nature’s Path

The Spoon

Deliciously Ella

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