Market Trends of India Breakfast Cereals Industry
This section covers the major market trends shaping the India Breakfast Cereals Market according to our research experts:
Increasing Growth of Hot Cereal Meals
The Indian market for muesli, granola, and hot cereal products is rapidly growing. Hot cereals include oats, oat bran, wheat bran, and porridge. Indian consumers prefer hot breakfasts. Hence, the hot cereal category is growing much faster than ready-to-eat cereals. Among hot cereals, oats have gained high acceptance and popularity due to consumers' awareness of the health benefits of whole grains. India is a large market with growing middle-income ground double-income households. It holds great potential for the breakfast cereal market, which must provide healthy, convenient, and tasteful options.
Constant innovation by companies and the mushrooming of startups are increasing the market size of the breakfast cereal category. For instance, in July 2022, Tata Consumer Products launched Tata Soulful Masala Oats + made with wholegrain oats and traditional Indian millets like Navane and Jowar. During the pandemic, due to COVID-19 restrictions, the consumption of packaged food increased in the country. However, the rising awareness about a healthy diet is expected to drive the market in the forecast period.
Product Innovation as Per the Local Taste Preferences
- Breakfast cereal manufacturers have continuously put up efforts and are constantly striving to create products that appeal to Indian preferences and palates. Indians love to have a little spicy food. Hence, they require their breakfast to be tasty and spicy. Because of the unique requirements of consumers in India, the market players are launching the product with new innovative ideas. For instance, in September 2021, Parle Agro entered the breakfast cereal segment with the launch of its new product, Hide & Seek Fills. The company aims to produce nutritious cereals and strengthen its product portfolio for consumers of all ages. Also, breakfast cereals for kids are available in the market with chocolate flavors and the goodness of cereals.
The market players are also conducting campaigns in collaboration with the government to make people aware of the importance of whole grains in their diet. Indian consumers spend a busy lifestyle with less time to have proper meals. Therefore, the market players are preparing instant products which consume less time and give proper nutrition. For instance, in September 2022, Kellogg's launched new instant cereal bowls that can be eaten by adding cold water.
