The global cereal market was valued at $29.1bn for 2011 and is estimated to surge to $29.5bn for 2012. But what companies are soaking up the profits?
Euromonitor data shows growth in the global breakfast cereal sector is set to surge and there are five clear market leaders whose positions have remained unchanged for 2010 and 2011.
Kellogg's, whose cereal brands include Corn Flakes, Crunchy Nut and Frosted Flakes, eats up the lion's share of the market representing 32.1% of the global retail value. The US cereal giant recently struck a joint venture with Chinese agribusiness Wilmar International to drive its market penetration in China deeper.
General Mills, with Cheerios, Lucky Charms and Trix, is next in line but with a significantly smaller global retail presence. The firm has pledged to invest heavily in innovation and new product development for 2013 in a bid to drive sales across the US.
Cereal Partners Worldwide, a collaboration between Nestlé and General Mills whose brands include Nesquik, Fitness and Chocapic, comes in third, just behind General Mills. The collaborative company harnesses the European and US strengths of both businesses and holds a sturdy presence across Southeast Asia.
PepsiCo Inc, with its Quaker brand, Sugar Puffs and Puffed Wheat, comes in fourth globally but shows strength in China - ranked fifth among four other local brands.
Ralcorp Holdings, a private-label cereal specialist, is fifth in the ranks. The company widened its portfolio in 2007 with the acquisition of Kraft Foods' branded cereal business Post. Ralcorp spun-off the Post business earlier this year in order to separate its branded cereal operations and private label contracts.