MAR­KET SIZE PROD­UCTS’ GROWTH PRO­FILE

Progressive Grocer (India) - - Category Watch Breakfast Food -

As In­di­ans, espe­cially in the ur­ban ar­eas, opt in in­creas­ing numbers for break­fast ce­re­als, the cat­e­gory holds great mar­ket po­ten­tial for both re­tail­ers and man­u­fac­tur­ers. The suc­cess story of Quaker, Kel­logg’s, Ba­grry’s, and other play­ers re­in­forces the be­lief in the po­ten­tial of the break­fast ce­real mar­ket. Quaker had a 13.3% share (value) of the pack­aged break­fast mar­ket in In­dia in 2015 – up from 9.5% in 2010 – whereas Us-based Kel­logg had a roughly 37% share of the coun­try’s break­fast ce­real mar­ket in 2015, ac­cord­ing to mar­ket re­search agency Euromon­i­tor In­ter­na­tional. Mar­ket an­a­lysts be­lieve that the break­fast mar­ket in In­dia is grow­ing @22% ap­prox­i­mately over­all. Met­ros and Tier 1 cities are the ma­jor mar­kets for break­fast prod­uct range, while Tier 2 and Tier 3 cities are the emerg­ing new mar­kets. “But the break­fast cat­e­gory is still un­der pen­e­trated and has a huge growth po­ten­tial. Brands should bring in in­no­va­tions in the mar­ket and a change should come in the con­sump­tion pat­tern,” says Eby Mathews, Chief Op­er­at­ing of­fi­cer, Food­world Su­per­mar­kets Pvt Ltd.

Though the seg­ment is still at a grow­ing stage with a lim­ited num­ber of na­tional and in­ter­na­tional play­ers, it has wit­nessed healthy year-on-year growth in the past cou­ple of years. The prospects of fu­ture busi­ness growth are defini­tively bright and pos­i­tive as con­sumers will in­creas­ingly look for healthy break­fast op­tions in easy-to-adopt for­mats. Ac­cord­ing to Ra­jeev Kr­ish­nan, MD & CEO, SPAR Hyper­mar­kets, “The break­fast cat­e­gory is wit­ness­ing strong growth largely fu­eled by re­gional play­ers. There is a strong de­mand seen in the easyto-pre­pare healthy food op­tions. For ex­am­ple, there is a steep in­crease in con­sump­tion of prod­ucts like brown breads, oats, mil­let flour and idli bat­ter. The traditional healthy break­fast prod­ucts are wit­ness­ing higher growth than West­ern food al­ter­na­tives like corn flakes, jams, juices, etc. There is also a great de­mand from cus­tomers for prod­ucts that are tasty, healthy and af­ford­able. There is al­ready a strong par­tic­i­pa­tion from re­gional brands that meet th­ese needs and are help­ing to drive re­peat pur­chases. While there is a nat­u­ral pull for th­ese cat­e­gories, the de­mand gen­er­a­tion for con­ven­tional break­fast ce­real prod­ucts like corn­flakes needs a push.”

As per “In­dia Break­fast Ce­real Mar­ket Out­look, 2021”, In­dia’s break­fast ce­real mar­ket has been grow­ing at a CAGR of 22.07% over past five years and was pegged at USD 157 mil­lion in 2013 with the prom­ise of dou­ble digit growth over the next five years. The break­fast ce­real mar­ket in In­dia grew 24% in 2015 to Rs.1,440 crore and is es­ti­mated to touch Rs.2,610 crore by 2020, ac­cord­ing to Euromon­i­tor. Be­ing a large mar­ket with a grow­ing mid­dle-in­come group and dou­ble-in­come house­holds, In­dia holds great po­ten­tial for the break­fast ce­real mar­ket. “With grow­ing aware­ness for a healthy life­style, the break­fast cat­e­gory at our stores has been ob­serv­ing mount­ing growth and I fore­see fur­ther ad­vance­ment. Con­sumers are con­stantly en­quir­ing and look­ing for new­ness in this cat­e­gory, which is giv­ing rise to new prod­ucts in the quinoa and gra­nola range,” opines R. Sankara­narayanan, VP - Buy­ing & Mer­chan­dis­ing, HYPERCITY.

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