Breakfast Cereals in U.K. Estimated for Modest Growth Driven by Demand in Hot Cereals Category during Forecast 2017-2022

Published on : Aug 31, 2017

Albany, New York, August 31, 2017: In recent years, increasing demand for more value-added cereals containing whole wheat, high fiber content and other healthy ingredients is expected to steer healthy breakfast cereals market growth. According to a recent study, in the United States, fewer people are skipping breakfast now than two years ago, but they are opting for cereal bars or ready meal from cafes and coffee shops. Market Research hub (MRH) has recently broadcasted a study titled “U.K. Breakfast Cereals- August 2017” to its wide repository, which offers detailed overview on the current market status of breakfast cereals in U.K. retail market by analyzing consumer behaviors, market trends, key players and brand sales. The study analyses and forecasts the market growth in terms of U.K. retail sales of breakfast cereals, by value and volume for the period 2012 to 2022.

For the purposes of this report, breakfast cereals are segmented into RTE cereals and hot cereal products. The research finds that ongoing decline in RTE cereals brings down the entire market during 2012 to 2017 and due to the weakness of RTE cereals it is estimated to continue to hinder the category during the forecast period of 2017-2022. There are various diverse factors that will affect RTE cereals over 2017-2022. As per the findings, fragmented eating habits have added to the woes of RTE cereals, with many cereal eaters skipping breakfast or snacking instead. The research further also adds that there is a modest growth in hot cereal volume sales in 2016 and this volume sales growth stalls in 2017. The ageing population is the most important factors that are estimated to support hot cereals during 2017-22.

Another important factor which negatively affected the growth of breakfast cereals was the shifting demand towards on-the-go products, which meant that consumers would not choose breakfast cereals as an option for the morning meal with the same religiosity as in the past, as they no longer were buying in bulk. Offering branded sweet snacks suited to eating on the go other than the well-established cereal bars would allow companies to better capitalize on consumer snacking tendencies while also appealing to the time-pressed, finds study.

In terms of market share, Kellogg’s brands continue to struggle while own-label rises. On the other hands, Quaker retains leading position in hot cereals but loses sales. Weetabix Minis outperforms the standard variants. At present, ingredients with ‘natural’ image appeal most as sugar substitutes. Seven in 10 consumers are influenced by concerns over the health benefits of cereal and are looking to reduce the sugar intake in their diet, finds study. Increasing consumer awareness towards benefits associated with these breakfast cereals along with growing desire for low calorie and high carbohydrate/fiber content products for weight loss is expected to drastically impact product sales.

The brand analysis section includes user profile of key brands currently active in the market, such as Weetabix, Quaker Oat, Dorset Cereals, Crunchy Nut, Coco Pops, Shredded Wheat and Special U.K.

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