With home seclusion and lockdown measures in place during 2020, breakfast cereals is set to see a boost in value and volume sales, moving from 1% value growth in 2019, to a prediction of 5% for 2020.
There have been calls in Australia to review the Health Star Rating System, which currently does not differentiate between naturally occurring sugars, and added sugar in cereals. As consumers awareness of health and wellness grows, the flaws of the current system, have become increasingly criticised.
In 2019, the drought in Australia forced major cereal player Kellogg’s to raise prices of well-known brands, including Coco Pops, Nutri Grain, All-Bran, Special K and Rice Bubbles. The drought, which began in 2018, has driven up wholesale prices of Australian grown crops, which are the main crops used for Kellogg’s cereals.
Following a significant uplift in growth due to the outbreak of COVID-19 in 2020, in 2021, value growth is set to be flat rate as demand returns to normal. Over the forecast period, it is then expected that breakfast cereal players will gradually return to pre-COVID levels of maturity, as consumers return to their normal routine and opt for convenient on-the-go options again.
Muesli and granola is projected to perform better than other breakfast cereals over the forecast period, driving the category growth. As COVID-19 increased interest in health and wellness during 2020, this is set to boost sales, as consumers consider muesli and granola as a healthier option.
Despite the economic recession, it is anticipated that more premium options in breakfast cereals will drive growth and innovation across the forecast period, alongside functional breakfast cereals. Examples of products in this vain include Kellogg’s Just Right, which combines different, healthy breakfast ingredients, Uncle Tobys turmeric and coconut infusions.
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Understand the latest market trends and future growth opportunities for the Breakfast Cereals industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Breakfast Cereals research and analysis database.
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