North America Cereals Market

North America Cereals Market Size, Share, Growth (2022-2027)

North America Cereals Market was worth USD 15.78 billion in 2022 and is estimated to be growing at a CAGR of 4.24%, to reach USD 19.40 billion by 2027

Market Overview:

Breakfast cereals are produced from processed grains and can be consumed in dry, hot, or cold forms. They have become the most commonly consumed breakfast items as it is easy to make and nutritious as well. Cereals are among foods highly enriched with vitamins, minerals, and other nutritional additives. Breakfast is considered the most important meal of the day because it helps revitalize the body, keeping it active and productive until the next meal. The demand for a full breakfast is increasing due to busy schedules and the need to improve the overall nutritional needs of consumers. Cereals come in different forms, such as ready-to-eat, whole-grain, or bran cereals with added sugar.

REPORT COVERAGE:

Recent Developments

1. Associated British Foods (ABF), which owns brands such as Jordans and Ryvita, acquired Dorset Cereals in a £ 50 million takeover bid. ABF, which also owns fashion retailer Primark, has faced competition from rivals Kellogg's and Weetabix. Dorset Cereals, sold through the Wellness Foods portfolio, makes premium brands of porridge, muesli, granola and cereals. It launched a new line of oat-based granola in December of last year. ABF can now add premium Dorset cereal to its portfolio, which already includes the Jordans brand of cereal. Jordans was acquired in 2008 when it merged with Ryvita.

2. Arnott's Biscuits Ltd. has agreed to acquire the cereal and snacks business of Australian food producer Freedom Foods Group Ltd. for A $ 20 million in cash. Freedom Foods, in a Dec. 17 statement, said it would generate an $ 11 million in profit after costs. Arnott's will acquire manufacturing plants at Leeton and Darlington Point in New South Wales and Dandenong in Victoria as part of the acquisition. Freedom Foods, Messy Monkeys, Heritage Mill, Arnold's Farm and Barley + are among the brands included in the agreement.

3. Kellogg Company (NYSE: K), the world's leading cereal producer and a leading producer of biscuits and prepared meals, today announced the acquisition of Specialty Cereals Pty Limited, a private manufacturer of natural ready-to-eat cereals. Frenchs Forest, Sydney, Australia. Founded in 1988, Specialty Cereales markets products under the Vogels, Wild Oats and Cerevite brands. Terms of the transaction were not disclosed. With net sales of specialty grains of approximately $ 17 million for the Australian fiscal year 2007/2008, the transaction is not expected to have a significant impact on Kellogg Company's 2008 operating income.

Market Drivers and Restraints:

The growth of the market is mainly due to the change in eating habits and the influence of Western culture on the eating habits of consumers, as it offers a convenient solution to easily accessible food that maximizes the ease of consumption without additional preparation. In addition, the constant preference of consumers for nutritious and healthy food is driving the market. Additionally, strong convenience store growth promoting brand visibility is driving growth in the breakfast cereal market. Ready-to-eat breakfast cereals dominate the overall market due to the convenient solution they offer to consumers. The market is primarily driven by consumers with busy lifestyles, as these are processed grain formulations suitable for consumption without additional cooking. Ready-to-eat whole grains dominate the market due to the added micronutrient value of these products. Additionally, large companies are trying to blend healthy, organic ingredients to boost breakfast cereal sales. Additionally, manufacturers are also using traditionally grown grains, such as quinoa, to innovate grain breakfast products. However, the market is stagnant due to the same consumer inclination towards traditional breakfast foods, thus restricting the growth of the market.

North America Cereals Market Segmentation Analysis:

Based on Type:

• Hot Cereals

• Ready to Eat Cereals

Based on Ingredient Type:

• Rice

• Wheat

• Corn

• Barley

• Others

Based on Distribution Channel:

• Supermarkets

• Hypermarkets

• Independent Retailers

• Specialist Retailers

• Convenience Stores

• Others

Impact of covid-19 on North America Cereals Market

COVID-19 has affected almost every country in the world and India is no exception. Some countries are severely affected, while others have managed to control the spread by implementing containment measures and maintaining social distancing. The World Bank said at a press conference that India would likely post its worst growth performance since liberalization in 1991 in this fiscal year due to the Corona outbreak. Restaurants and cafes have been on the front lines of the crisis, and many have already been forced to close due to city-wide closures or a decline in customs due to social distancing.

Regional Growth Insights:

Geographically the North America Cereals Market is segmented into

• US

• Canada

• Mexico 

The North American breakfast cereal market is expected to be the largest during the forecast period due to high consumption of functional foods and meal replacements. Eating a high fiber intake of whole grains for breakfast offers several health benefits, such as boosting the immune system and promoting nutritional intake in children and youth. These factors are expected to drive the regional growth of the breakfast cereal market during the forecast period. Food manufacturers in the region are launching products with new and innovative flavor blends. Furthermore, increased government investment in the food industry is expected to provide an opportunity for regional market players during the forecast period.

North America Cereals Market Key players:

1. General Mills

2. Kellogg Company

3. Nestle Inc

4. PepsiCo Inc

5. The Coca-Cola Company