Project report for Breakfast Cereals

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The rising demand for convenient food options due to busy lifestyle and increasing disposable income is further pushing demand for breakfast cereals industry in India. Further, manufacturers are offering a large variety of breakfast cereals in different flavors like tangy tomato, curry & spice, etc., to suit the taste of consumers, which is expected to fuel growth in India breakfast cereal market over the coming years. On the other hand, the consciousness has increased among consumers and brands with the help of retailers vying on maintaining the highest safety standard with quality and sustainability as a major concern. With the growing demand from conscious consumers for supermarkets to provide a wider variety of food products to cater to specific preferences, such as natural ingredients to organic and free-from products, brands operating in this segment are continuing to expand their offering to include more innovative products that promote sustainable and healthy eating.

Cereal, formally termed breakfast cereal and further categorized as cold cereal or warm cereal is a traditional breakfast food made from processed cereal grains. It is traditionally eaten as part of breakfast, or a snack food, primarily in Western societies. Although warm cereals like porridge and grits have the longest history, ready-to-eat cold cereals appeared around the late 19th century, and are most often mixed with milk, but can also be paired with yogurt instead or eaten plain. Fruit or nuts are sometimes added. Many cereals are produced via extrusion. Some companies promote their products for the health benefits that come from eating oat-based and high-fiber cereals. In the United States, cereals are often fortified with vitamins but can still lack many of the vitamins needed for a healthy breakfast. A significant proportion of cereals have a high sugar content. Some cereals are marketed primarily towards children, feature a cartoon mascot, and may contain a toy or prize. New offerings give people the flexibility to shop conveniently and create healthy meals in a similar fashion to scratch cooking.

Market potential & Strategy

India Breakfast Cereals Market is expected to grow at CAGR of 6.50% during the forecast period. Cereals have always been a major part of the Indian breakfast. Breakfast Cereals are a growing market in India. Breakfast cereal manufacturers have used the nutritional plank as a growth strategy. Lifestyles are changing in tandem with increasing spending power and higher need for convenience. These factors have encouraged Indians, especially in urban areas, to opt for breakfast cereals. Breakfast Cereals Market size was valued at INR 28870 Crores in 2020 and is projected to reach INR 37700 Crores by 2028, growing at a CAGR of 3.38 % from 2021 to 2028. The Breakfast Cereals Market has witnessed strong growth owing to the increase in the demand for ready-to-eat food for breakfast. Moreover, advancing food retail infrastructure simultaneously with rising awareness about the health benefits of consuming grain-based breakfasts is further boosting the growth of the market. The loss of nutritional content in break-fast cereals might inhibit market growth. Notwithstanding a growing number of convenience stores in emerging economies, increasing commodity and energy prices will continue long-term restraints. Gluten content in cereals is being constantly scrutinized by consumers as well as governments, compelling manufacturers to improve their gluten-free product range. Nevertheless, rising urbanization and the increasing disposable income of consumers are expected to offer lucrative opportunities for the market during the forecast period.

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