Market Trends of North America Breakfast Cereals Industry
Rising Demand for Ready-to-eat Breakfast Cereals
Ready-to-eat breakfast cereal dominates the whole market owing to the convenience solution it offers to consumers. The market is mostly driven by consumers having busy lifestyles, as these products are processed grain formulations suitable for consumption without further cooking. Whole grain-based ready-to-eat cereals are leading the market owing to the value-addition in terms of micronutrients in these products. Also, the leading companies are trying to blend organic and healthy ingredients in order to boost the sales of breakfast cereals. In addition, the manufacturers are also utilizing traditionally grown cereal grains such as quinoa to create innovation in breakfast cereal products. For instance, according to General Mill's Annual report, the company's North American Retail operational segment generated around USD 3.37 billion in net sales through its United States Morning Foods division this year.
Moreover, due to busy lifestyles and demanding work schedules, consumers are shifting their preferences from home-cooked food to ready-to-eat products in the market. This shift in consumer behavior will probably have a substantial positive impact on the market under study during the projection period. The closest substitute for regular food that may be consumed anytime is ready-to-eat products. Millennials and the young generation are the easiest targets for ready-to-eat breakfast cereal manufacturing giants as they spend most of their income on such food products. Thus, such products' convenience level is increasing the market's total growth.
Supermarkets/hypermarkets and Convenience Stores Sales to drive the Regional Market
Supermarkets/hypermarkets and convenience store sales dominate the market in this region during the forecast period. Moreover, products that claim to be organic, natural, and healthy in the breakfast cereals segment are expected to have great potential for market growth with respect to supermarkets/hypermarkets and convenience store sales since such claims on the packaging attract consumer attention during grocery purchases, therefore driving the breakfast cereal market in the region. Furthermore, the expansion of retail distribution channels is another factor for rising sales in rural and tier-II cities. However, increased competition from artisanal food services offering varieties of fresh breakfasts affected the packaged breakfast cereals market sale in the region. But, the demand for breakfast cereal products in convenience stores is expected to increase significantly during the forecast period.
For instance, according to Nielsen and NACS magazine, Texas has 16,018 stores, 4,000 more than California, which came in second with 12,000 convenience stores, as the state has most of these establishments in the United States. In total, 148,026 convenience stores opened this year and are operating across the country.
Furthermore, a survey conducted by Convenience Store News in the United States this year stated that compared to 2019, 67% of respondents claimed they shopped at convenience stores. In contrast, 20% of respondents claimed to have increased their shopping at convenience stores. These statistics indicate that convenience store sales dominate the market in this region.
