FDBusiness.com

Volume Sales Fall in UK Breakast Cereals Market

 Breaking News
  • Irish Distillers to Invest €150 Million in Sites in Cork and Dublin Irish Distillers has announced investment of over €150 million in its sites in Cork and Dublin to meet demand for its products as the Irish whiskey renaissance continues apace. This is accelerated by the continued growth of the company’s flagship Jameson brand, which is now in double or triple-digit growth in more than 80 markets [...]...
  • Kepak Sweeps Up Seven Awards at Blas na hEireann Irish meat processor Kepak Group has picked up seven awards at this year’s prestigious Blas na hEireann Irish Food Awards, including a Gold award for its newly launched Centra Irish Angus Sirloin Steaks with Pink Peppercorn Butter. As one of Europe’s leading food innovators, Kepak was up against the top Irish producers in a range of distinct [...]...
  • Chr. Hansen Acquires Dairy Ingredient Supplier Through the acquisition of Austrian-based ingredient supplier Österreichische Laberzeugung Hundsbichler, Chr. Hansen will further expand its enzyme production and presence into the traditional segments of specialty cheeses. Hundsbichler products are widely recognized for high quality, and this acquisition will enable Chr. Hansen to offer cheesemakers a second-to-none product portfolio in the animal rennet space. The acquisition [...]...
  • Croxsons Pulls Out All the Stops For HMS Spirits Company Leading glass packaging company, Croxsons, recently came to the aid of start-up artisan gin distiller, the HMS Spirits Company, to fulfil an urgent packaging requirement. The distiller had found itself without a closure for its latest release, Mary Rose Gin, a small batch London Dry Gin produced to celebrate Henry VIII’s famous warship. The distiller, who [...]...
  • Mains Overtaking Bottled Water Coolers in West Europe 102,500 more water coolers were installed across West Europe in 2017, marking a 3.4% increase and taking the total to 3.1 million, according to a new report from the sector’s leading specialist consultancy Zenith Global. The number of mains water, point of use coolers rose by 6.2% to reach 46.9% of the total, up from [...]...

Volume Sales Fall in UK Breakast Cereals Market

Volume Sales Fall in UK Breakast Cereals Market
July 31
14:07 2013

The UK breakfast cereals industry grew by 3.4% in value terms in 2012, according to ‘Breakfast Cereals’, a new market report from market intelligence provider Key Note. This marks a slowdown in growth due to promotional activity and a fall in volume sales.

Breakfast cereals have traditionally been the UK’s favourite breakfast option. The market is divided into two main sectors: ready-to-eat (RTE) and hot cereals. The former makes up the bulk of the market. However, growth in 2012 was driven by sales in the latter category. Consumers want healthy and nutritious cereals that will keep them full until lunchtime. In addition to the hot cereals sector, several subcategories in the RTE cereals segment are performing well, particularly children’s, health and muesli.

Innovation is centred on the development of premium flavours and manufacturers are differentiating themselves from competitors through this type of development. Value is also a major concern as cash-strapped consumers are opting for the best deals and limiting their spending to the essentials.

Despite a focus on value, Britons want variety. They do not like eating the same thing every day, including breakfast cereals. Other popular items include bagels, croissants and muffins. On-the-go products are also increasingly important. This is evidenced by the surge in demand for breakfast biscuits in the UK, as well as cereal bars. These factors have weakened value and volume sales in the breakfast cereals market, especially the RTE cereal category, which contains products that are designed to be eaten in a bowl with a spoon. Manufacturers have responded by launching hot cereals in pots and instant formats as a convenient solution instead.

Brands in the breakfast cereals market are either successful or struggling. Own labels are becoming increasingly important as supermarkets invest in their ranges and develop breakfast cereals of equal quality as brands with better value. Quaker Oats is doing particularly well due to its focus on the hot cereals category and new product development (NPD). In contrast, core staple brands are falling behind. Consumers have become wary of the excessive sugar content in many of these products, such as Frosties and Coco Pops. Although manufacturers in the RTE breakfast cereals sector continue to introduce new products within in-demand subsectors, many are investing their resources in developing entirely new products, such as breakfast biscuits, instead of RTE cereals. This trend does not bode well for boxed cereals. Key Note expects that they are entering a period of decline as they lose relevance in consumers’ day-to-day lives in the UK.

Between 2013 and 2017, the breakfast cereals market is forecast to rise in value by 10.6%. However, only brands with effective marketing and innovation strategies will be profitable. Furthermore, the growth rate will decelerate as a result of the economic crisis. Consumers will tighten their belts and competition in the food and drinks sector will intensify as manufacturers compete for a limited number of sales. Companies’ profit margins are expected to be squeezed by promotions and rising production costs. Overall, hot cereals will continue to outperform their RTE counterparts.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements