Is SA’s Breakfast Cereals Industry catering to the growing Millennial segment?

Breakfast Cereals are still typically cherished by Baby Boomers who become nostalgic when thinking of Breakfast Cereals such as Froot Loops, Coco Pops and the sugar-coated Frosted Flakes. However, Millennials have received the term ‘Cereal Killer’ as this generation is specifically moving away from Breakfast Cereals and embracing various on-the-go snack options that better suit their fast-paced lifestyles. This development represents a threat to the Breakfast Cereals industry and challenges industry players to develop innovative new products to appeal to the changing needs of consumers.

Insight Survey’s latest SA Breakfast Cereals Industry Landscape Report 2018 discusses the global and local Breakfast Cereals markets (Including Gluten-free cereals and cereal bars) based on the latest information and research.  It examines the market drivers and challenges, as well as global and local market trends to present an objective insight into the environment, market dynamics, and future of the South African Breakfast Cereals Industry.

At a global level, the Breakfast Cereals market was valued at US$42.5 billion in 2017 with a compound annual growth rate of 4.5% predicted for the 2017 to 2024 period. As per the graph below, China was the world leader in Breakfast Cereals production, producing an estimated 556.1 million tonnes of Breakfast Cereals in 2017. The United States (US) was the second largest Breakfast Cereals producer, adding an estimated 440.0 million tonnes of Breakfast Cereals to world production.

Well-known breakfast cereal brands, such as Frosted Flakes and Froot Loops, may be household names among the Baby Boomer generation, but the reality is that the consumption of this group has peaked and younger generations are now becoming more relevant. The Breakfast Cereals industry will have to make considerable adjustments in order to cater to Millennials, as this group is expected to account for 75% of the global workforce by 2051.

Globally, Millennials are more health-conscious and show a strong preference for healthy and convenient snacks that can be consumed on-the-go. Millennials are also known to value innovative food products and prefer bold new flavours, exotic ingredients and unusual packaging. The Kellogg Co in the US is attempting to appeal to this group of consumers by introducing a cereal café that is specifically designed to attract Millennials. The café will offer an Instagram station with props and professional lighting which encourages visitors to capture their experience and post it on social media.

In South Africa, the industry grew by a robust compound annual growth rate (CAGR) of 10.1% between 2012 and 2017 and is projected to grow by 8.4% between 2018 and 2022. Some of the key trends driving the South African market include the growing availability and popularity of healthy cereal bars and gluten-free cereals and snacks that is certainly helping to meet the needs of the capricious Millennial generation.

The South African Breakfast Cereals Industry Landscape Report 2018 (127 pages) provides a dynamic synthesis of industry research, examining the Breakfast Cereals Industry (Including Gluten-free cereals and cereal bars) from a uniquely holistic perspective, with detailed insights into the entire value chain – from production through to consumption.

Some key questions the report will help you to answer:

  • What are the key factors that are driving and restraining the growth of the local and global markets?
  • What are the latest South African Breakfast Cereals industry trends, drivers and challenges?
  • What are the current market dynamics (key brands, size, value, volumes) of the SA Breakfast Cereals industry?
  • Who are the key manufacturing and retail players in the SA Breakfast Cereals (including Gluten-Free) industry?
  • What are the prices of popular Breakfast Cereals (including Gluten-Free) brands across South African retail outlets?

Please note that the 127-page report is available for purchase for R25,000 (excluding VAT). Alternatively, individual sections can be purchased for R9,000 (excluding VAT). For additional information simply contact us at info@insightsurvey.co.za or directly on (010) 140-5756 or (021) 045-0202.

For a full brochure please go to: South African Breakfast Cereals Industry Landscape Report 2018

About Insight Survey:

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We offer B2B market research solutions to help you to successfully improve or expand your business, enter new markets, launch new products or better understand your internal or external environment.

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For more information, go to www.insightsurvey.co.za.