Bonafide Research's recent report 'India Breakfast Cereal Market Outlook, 2021', said only a handful of companies - Kellogg’s India, Bagrry and PepsiCo Quaker - command 75% of the market, leaving room for competitors.
To put India’s numbers in perspective, Euromonitor said in a November 2014 report that the US cereal retail value sales are expected to drop 8% from 2014 to 2018. Companies, such as Kellogg, have realized how important these burgeoning markets are and have spoken extensively about targeting emerging cereal markets.
What’s popular and who is buying?
According to Bonafide's report, urbanization of India and increasing income has helped cereal sales rise in the West, followed by the North and the South.
It said the cornflakes category dominates with the highest market share, with oats and muesli also seeing quick growth. However, hot cereal may be the driving force across the country.
“In India we prefer hot breakfasts so hot cereals are growing at a faster pace than ready to eat cold cereals,” the report said. “Nowadays, manufacturers have a range of brands appealing separately to kids, adults and the entire family.”
Healthy and hectic
The market is self-propelled in part, the report said, as higher spending and hectic lifestyles have been driving up the popularity of cereal.
Health is another driver, according to Bonafide Research, as cardiovascular disease, diabetes and obesity in Indians are all on the rise.
“Not only are influencers such as doctors, nutritionists and the media passing on these messages, the companies assiduously themselves play the health card in all their communication,” the report said. “Thus, Indian consumers are moving towards convenient and healthier life style thus making the breakfast cereal as an important category in food and beverage industry.”