Sales of hot cereal in Germany have grown at a CAGR of 10% since 2011, totting up a market value of €70m ($75.2m)in 2014, according to Mintel data. Sales volumes have also risen 28%.
Katya Witham, senior food and drink analyst at Mintel, said much of this growth was down to branded players – representing 90% of the hot cereal launches in 2014.
“Brands clearly have a leading role in expanding hot cereal sales in Germany, which is reflected in new product development,” she told BakeryandSnacks.com.
“The Germany hot cereal market is highly fragmented and is dominated by local brands. Brands worth mentioning are Kölln, Germany’s best known brand of oat cereals, and Mymuesli, a Germany specialist in custom-made, high-end muesli and porridge.”
‘Prolific’ flavor innovation, seeds and grains
In 2014, plain hot cereal accounted for just 24% of product launches, with most launches centered on fruity and sweet flavorings.
“Within the last five years, flavor innovation in the hot cereal market in Germany has been prolific,” Witham said.
Fruit flavors like apple, apricot, banana and cherry, along with berries, spice and chocolate were top flavor sub-categories in 2014. Top flavor blends included apple and cinnamon and raspberry, coconut and cherry.
She said ancient grains and seeds known for their rich nutrient content and health-giving properties, such as chia seeds, amaranth and linseeds, were also being used more widely by cereal makers.
“Going forward, we are expecting to see more products which will contain better-for-you seeds and nuts, with almonds in particular emerging as one of the on-trend additions.”
She said it was also likely more dates, bananas and raisin would be incorporated into hot cereal as German consumers moved away from processed sugars in their diet.
“… The hot cereals segment offers manufacturers strong potential for future growth in areas such as fortification or flavor innovation.”
The majority (87%) of German consumers say they eat cereals at breakfast. Nearly one-third eat breakfast at work or at place of study, 8% eat on the go and 4% in the car.
In packaging terms, Witham said branded hot cereal players were increasingly focused on on-the-go formats which addressed the “growing popularity of single-serve instant pots which German consumers see as a healthy and convenient breakfast”.
“…As German consumers are increasingly interested in convenience and portability, there is much scope for porridge manufacturers to tap into the growing trend of healthy breakfast on the go with novel portable packaging options,” she said.