Breakfast Cereals in India

PROSPECTS

Breakfast cereals soar thanks to increasing customer awareness of health benefits

Hot cereals, children’s breakfast cereals and family breakfast cereals all continue to see dynamic current value growth, with this linked to increased consumer awareness about the health benefits of these products. Busier lifestyles are also benefiting sales growth, with a growing number of consumers feeling that they lack enough time to cook all their daily meals.

Manufacturers focusing on variety and health to attract more consumers

2019 witnessed a proliferation of the flavours available in breakfast cereals, while also seeing the launch of healthier variants. A shift is being seen in urban areas from traditional Indian breakfast foods to western-influenced breakfast cereals, with the latter primarily benefiting from requiring less time in preparation.

Breakfast cereals benefit from widening use and launch of affordable small packs

Breakfast cereals have furthermore evolved from being viewed as options just for breakfast to being seen as a quick and healthy meal or snack option during the day. Consumers are notably switching from fried savoury snacks to breakfast cereals as a snack, with the latter benefiting from growing awareness of nutrition and a healthy image.

COMPETITIVE LANDSCAPE

Kellogg retains dominance despite growing competition, thanks to innovation

Kellogg remains the dominant player in breakfast cereals, thanks to successfully riding the back of the health and wellness trend in the country. The company is facing heavy and growing competition, with many players keen to capitalise on the potential for sales growth in this category.

Second-ranked Marico boosts share thanks to widening distribution and diverse flavours

Second-ranked Marico saw a good share gain in 2019 over the previous year, with this thanks to the company continuing to expand its distribution penetration throughout the country, especially in metropolitan cities. The company is notably focused on expanding distribution via modern grocery retailers and internet retailing.

PepsiCo also banks on Indian flavours and marketing but struggles to retain share as competition intensifies

PepsiCo and its brand Quaker are fighting Marico for second place in breakfast cereals, with this company also banking on the introduction of Indian flavours. Quaker Oats notably introduced Quaker Oats Kesar Flavour with Kishmish, boasting saffron and traditional golden raisins, alongside less traditional flavours such as strawberry with apple.

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