The 2016 salmonella crisis that caused a drop in sales may be over, but breakfast cereals continued to be affected by the ongoing health trend. This is true of both children's breakfast cereals and of flakes.
According to the health trend, categories perceived as healthier are producing faster growth; muesli and granola, as well as oatmeal in hot cereals. Oatmeal is gaining in popularity as a breakfast cereal, eaten as porridge, cold with milk and even as an ingredient for baking healthy cookies and snacks.
The Ministry of Health plans to implement a food labelling reform in 2020, in which products that are high in fat, sodium or sugar will be marked with negative labelling. This is expected to have a considerable impact on children's breakfast cereals, which are typically high in sugar.
Unilever Israel Ltd continued to lead breakfast cereals in 2018, due to its strong brands, which are well known and appreciated such as Telma Cornflakes and Kariot. The company also benefits from widespread distribution as it offers a wide product portfolio within breakfast cereals.
Among the companies that benefited from Unilever's struggles is Moshe Sides & Son Ltd, which distributes the brand Post. Its distribution expanded during the last three years of the review period, as well as its product portfolio.
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This industry report originates from Passport, our Packaged Food market research database.