Breakfast Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Breakfast Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global breakfast food market is expected to witness a CAGR of 4.6% during the forecast period (2021 - 2026).

As the lockdown was imposed in most parts of the world, the habit of breakfast consumption at home improved significantly as major restaurants and cafes were shut for a considerable amount of time owing to the pandemic situation. Moreover, the rising health consciousness among consumers to build immunity and sustain during the COVID-19 outbreak and the demand for healthy breakfast cereals and snacks have significantly improved over the year, which may improve over the forecast period. Moreover, there is a shift in general retailing as consumers became habitual of ordering their daily groceries online during the pandemic period. Hence, the online retail segment is likely to attain a significant growth rate in the years to come.

An increase in health awareness among people globally is making consumers increasingly prefer highly nutritious quick breakfast diets. Furthermore, the increase in the number of fitness enthusiasts who demand healthy foods, such as cereals and snack bars, on a regular basis is driving the growth of the market during the forecast period.​

The instant versions of breakfast cereals are considered convenient and satisfying among consumers, worldwide. The flavor varieties of breakfast cereals, along with their health-promoting traits, are driving the global market.

The breakfast sanctification has also prompted prominent companies operating in different processed food segments of the Asian Markets to diversify their offerings and enter the breakfast cereals category. For instance: Britannia Industries, a major bakery and dairy products manufacturer in India, introduced new breakfast items, such as oats and porridge, in the country.​

Key Market TrendsRising Demand for Ready-to-eat Food in the Breakfast Market

The prevalence of hectic lifestyles across developed, as well as developing nations, has led to a trend of skipping breakfast meals, propelled mostly by the millennial segment. Therefore, this has resulted in leveraging the business of ready-to-eat food products owing to the increasing understanding of perception among consumers in devouring traditional breakfast meals throughout the day, thus considering RTE foods as the closest alternative to regular food. This segment is growing at a fast pace due to the high consumer acceptance for such breakfast food globally. Also, innovative products in functional ingredients, convenience, and organic foods and advancement in areas of packaging technology are expected to provide a future growth opportunity in the sector.

Domination of Breakfast Food Products in North America

The North American market holds the majority of the share in the global breakfast food market demand, followed by Europe. The excess production capacity, changing consumer preferences across the spectrum of shopping habits, purchase behavior, and consumption patterns drive the market growth in the region. However, an opportunity exists for a brand to take over the breakfast market through consumer engagement, as demonstrated in recent years by PepsiCo, with Frito-Lay engagement programs in snacks and creative foodservice partnerships.

The manufacturers are also focusing on the health and wellness trend in North American, targeting young consumers and the working population. The changing lifestyle of consumers involving the consumption of smaller meals is further leading to the increased consumption of breakfast food, which is expected to propel the demand for products, such as snack bars, cereals, and others, in the region.

Competitive Landscape

The breakfast food market is entirely focused on business to consumers, where some of the major players in the market included are The Kellogg Company, General Mills Inc., Nestle SA, and The Kraft Heinz Company, among others. Leading manufacturers in the market are focusing on leveraging opportunities posed by emerging markets of Asia-Pacific, to expand their revenue base.

Key players investing in physical retail promotions are experiencing diminishing returns from merchandised products since competitive retailers accept more promotions and dilute the effectiveness of any single promotion. Omnichannel strategies are expected to yield the highest return on investment. However, key brands are embarking on mergers and acquisitions as their key strategy to achieve consolidation, along with optimization of their product offerings.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

The Kellogg Company
Del Monte Food Inc.
Nestle S A
Pladis Foods Limited (McVitie's)
PepsiCo Inc.
Unilever
Post Holdings Inc.
ITC Limited
Premier Foods Group Limited
Orkla ASA

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