Breakfast cereals continues to post stable value growth in Eastern Europe. Sales are strongly supported by the popularity of hot cereals in many countries, as well as the health and wellness and convenience trends. Increasing consumer attention to ingredients has led manufacturers to launch reduced sugar, fortified, organic and gluten-free products. Over the next five years, breakfast cereals is set to continue to see value growth, driven by expected economic growth and changing lifestyles.
Despite the rather complicated economic and political situation in Russia and Ukraine since 2014, breakfast cereals continued to post stable value growth in the region over 2014-2019. The category is strongly supported by the popularity of hot cereals in many countries in the region, as well as the greater adoption of the health and wellness and convenience trends.
The overwhelming share of value sales of breakfast cereals in the region falls to Russia. Due to its large market size and slow but continuing economic recovery, alongside the tradition of consuming hot cereals, Russia became the main contributor to the growth of breakfast cereals over 2014-2019 and is expected to drive the development of the category in the coming years.
Increasing consumer attention to product content incentivised manufacturers to adapt their products by reducing sugar levels, carrying out product fortification and introducing organic and gluten-free ranges.
Cereal Partners Worldwide, the leader in breakfast cereals in the region, has seen a declining value share since 2014. Overall, the category is becoming more competitive and diverse. Consumers are paying increased attention to local brands, which are positioned as healthier and more natural compared with products from multinational corporations, which normally have a higher sugar content.
Over the course of the next five years, breakfast cereals is set to continue to see value sales growth, driven by prospective economic growth and changing lifestyles. Demographic factors will be among the potential restraining forces.
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