BMi report on breakfast foods

Market definitions

The market is divided into two major sections - cold cereals and hot cereals.

The cold cereal category encompasses all those breakfast cereals that are usually eaten cold and do not need to be cooked before consumption. Generally, this would include whole-grain cereals, high-fibre cereals, muesli and ready-to-eat or pre-sweetened cereals. Infant cereals are included within this category.

Hot cereals include all breakfast cereals that need to be cooked before consumption. This categorisation includes porridge type cereals, generally of a maize or oat origin. Sorghum-based porridges have been included within this classification.

Market Trends - Cold Cereals 2012

Cold cereals continue to grow in 2011 at a rate of 5.8%. Similar rates were last seen in 2006, which is an illustration of the popularity of cold cereals as well as indicting the convenience aspect of it.

The outlook for 2012 and 2013, at this stage is conservative, as players are very unsure about future market movements. Not all cold cereals are produced locally, so exchange rate issues, as well as cost effective local production will need to be monitored.

The continued focus on health products and the higher fibre content of breakfast foods will continue to drive the Low GI, high-fibre content products. These aspects are likely to continue to drive growth in the category.

Cold cereals are priced higher than hot cereals and therefore will remain predominantly in the retail channel.

The foodservices market has traditionally focused on the hot cereal market and, due to price sensitivity, this will continue to be the trend.

Product promotions will continue through 'above the line' advertisement, print adverts and free samples in magazines and newspapers

Market Trends - Hot Cereals 2012

Hot cereals are still a popular breakfast food, holding 52.8% of the total market. This is due to the practicality of the product, by providing a cheap and cost effective meal, which lasts both the young and old till their next meal.

Most hot cereals provide increased convenient line extensions, with several producers now making quick and easy sachet packs, simply requiring hot water to make the meal. This has been the drive within the category to stimulate growth and offer convenience in line with cold cereal trends.

The extension of bigger pack sizes for instant hot cereals has driven growth as consumers get the convenience benefit more economically.

More consumers are choosing to eat a healthy breakfast to begin their day. Physicians and GPs have promoted this for years and now this seems to be positively influencing the breakfast foods market.

Breakfast Foods - Total Market Volume 2012

Channel Distribution of Breakfast Foods 2012

Local Regional Distribution of Breakfast Foods 2012

BMI Research: Consumer Division has the ability to draw on company's established experience in the retail and wholesale sectors, providing a unique and customized solution to understanding consumer behaviour.

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