Demand for Breakfast Cereals to Increase owing to their Numerous Health Benefits


Published Date : Nov 24, 2016

Rising concerns over health has increased the realization of the importance of having a healthy breakfast. The benefits of having a regular and a nutritional breakfast include, lower risk of obesity, balanced cholesterol levels, memory improvement, and balanced insulin levels. The practice of skipping breakfast is thus reducing. Cereals are considered to be an ideal breakfast and owing to their high nutritional content and low calorie value. Increasing urbanization and growing number of convenience stores are expected to drive the global breakfast cereals market.

Currently, the global cereals market is driven by the high demand from emerging nations on account of the increasing product acceptability in these countries. The growing population in Asia Pacific is expected to create a high demand for breakfast cereals and this will be another driving factor for the market’s growth. Consumers in Asia Pacific are switching their breakfast patterns from customary heavy foods to the healthy packaged breakfast cereals.

Inadequate Supply of Palm Oil to Pose Problems for Manufacturers of Breakfast Cereals

Palm oil is one of the most important ingredients for the production of breakfast cereals. However, palm oil is cultivated in limited and specific areas because of the climatic requirements of this plant. Thus, obtaining palm oil for the manufacturing of breakfast cereals is expected to become a hurdle for players in the global breakfast cereals market.

The availability of alternative breakfast options is another major challenge for the global breakfast cereals market. There has been an increased competition for breakfast cereals from traditional breakfast foods such as eggs, fruits, toasts, and yogurt. Consumers are increasingly preferring packaged snack-breakfasts as opposed to cereal breakfast as it is portable and saves time. In China, there is a traditional breakfast staple called “congee”, which is giving strong competition to breakfast cereals. In India, people opt for bread and other flour-based foods for breakfast. Thus, traditional breakfasts are hampering the growth of the market.