According to a new market report published by Transparency Market Research "Breakfast Cereals Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019" the global breakfast cereals market was valued at USD 32.5 billion in 2012 and is expected to grow at a CAGR of 4.1% from 2013 to 2019, to reach an estimated value of USD 43.2 billion in 2019.


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The need for convenience and busy schedules of people has been propelling the processed food industry, which includes breakfast cereals. Developed nations already have breakfast cereals as part of their regular course of meals. Increasing per capita income in developing countries is further giving the breakfast cereal industry a new dimension to look for.


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The declining market in the U.S. is compelling the companies in this industry to increase their markets in the emerging economies. These companies have been increasing their advertising spends in the emerging markets in Asia pacific region to make consumers aware about the breakfast cereals and the health benefits associated with them. Companies have also developed some brands according to the regional preferences, such as inclusion of saffron and raisin flavored cereals in India.

Breakfast cereals are broadly marketed under two segments: Ready-to-eat (RTE) cereals and Hot cereals. The market for RTE cereals is much bigger as compared to Hot breakfast cereals. The RTE cereal had the larger share in the breakfast cereal market and was valued at USD 27.8 billion in 2012. However, the Hot cereals is growing at more than double the CAGR of RTE cereals due to its increasing consumption in the Asian markets.


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Geographically, North America, led by sales from the U.S., accounted for the largest share in the breakfast cereals market and was valued at USD 13.9 billion in 2012. Though China does not have a large market, but the market in the country is growing at a brisk pace, therefore showing opportunities for the companies to increase investments in this region. Major companies operating in the market are Kellogg's, Cereal Partners Worldwide and PepsiCo.