MARKET SIZE PRODUCTS’ GROWTH PROFILE
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.