• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

The UK Breakfast Cereals Market Has Grown In Value Terms -- Increasing By an Estimated 9.5% Between 2002 and 2006, to GBP 1.23bn at Retail Selling Prices (Rsp)

Posted on: Monday, 11 June 2007, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c59406) has announced the addition of Breakfast Cereals Market Report 2007 to their offering.

In volume terms, consumption of breakfast cereals appears to have accelerated during the 2000s. Certainly, consumption of oats, muesli and high-fibre cereals has expanded dramatically since 2002. Health is undoubtedly the key factor driving this expansion. The growth is remarkable given that the market is so mature and that cereals have faced increasingly fierce pressure from alternatives, such as cereal bars and croissants. Some products have also come under fierce attack for their allegedly high sugar and salt content.

The UK breakfast cereals market has also grown in value terms -- increasing by an estimated 9.5% between 2002 and 2006, to £1.23bn at retail selling prices (rsp) -- reflecting the growth in volume and the shift towards premium-priced products. This, however, has been offset to some extent by aggressive price discounting by the major multiples. Manufacturers are addressing consumers' health concerns over sugar and salt levels with reduction programmes. In addition, they have placed more emphasis on their brands' health credentials, and new product development (NPD) has also followed this trend.

Consumer data from BMRB International Ltd's Target Group Index (TGI) survey confirm that cold breakfast cereals remain a family favourite. In 2006, 86% of adults had eaten cold breakfast cereals over the past 12 months, which is an extremely high rate of household penetration. Hot cereals recorded a much lower level of household penetration than cold cereals, but, at 49.4% of adults, the penetration rate was still impressive.

The market is very stable in terms of brand shares and suppliers. The market is already highly consolidated, with Kellogg, Weetabix and Cereal Partners -- which markets the Nestlé brand in the UK -- accounting for around £6 out of every £10 spent in the market. Weetabix remains the top-selling ready-to-eat (RTE) cereal, followed by Kellogg's Corn Flakes, Crunchy Nut Corn Flakes and Special K, with Nestlé's Shreddies taking fifth spot. However, many smaller companies that are targeting niche areas, such as demand for organic and premium products, are also prospering and may well become a target for the larger players.

Prospects for the breakfast cereals market appear very strong. Breakfast cereals have a healthy image, are convenient to use and are already a well-established item in most people's kitchens. As such, they should continue to be beneficiaries of the two major trends influencing food and drinks markets, not just in the UK but around the world -- namely demand for healthy and convenient products. Furthermore, manufacturers are helping to drive sales by lowering sugar and salt content, and reinforcing the positive image of the market with fortified and premium products. Although alternatives such as cereals bars grew rapidly between 2002 and 2006, they appear to have complemented breakfast cereals rather than take sales from them. Over the next 5 years (to 2011), we forecast that the UK breakfast cereals market will grow in both volume and value terms, although increases in value are expected to outpace those of volume sales.

Content Outline:

Executive Summary

1. Market Definition

2. Market Size

3. Industry Background

4. Competitor Analysis

5. Strengths, Weaknesses, Opportunities and Threats

6. Buying Behaviour

7. Current Issues

8. The Global Market

9. Forecasts

10. Company Profiles

11. Consumer Confidence

12. Further Sources

Companies Mentioned:

- Cereal Partners UK

- Dailycer Ltd

- Doves Farm Foods Ltd

- Kallo Foods Ltd

- Kellogg Company of Great Britain Ltd

- Morning Foods Ltd

- Quaker Oats Ltd

- W Jordan (Cereals) Ltd

- Weetabix Ltd

For more information visit http://www.researchandmarkets.com/reports/c59406.

Source: Business Wire

More News in this Category