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    Blog

    Keys to Success in Breakfast Foods: Nutrition & Convenience

    Ancient grains, clean labels, gluten-free options and convenient, on-the-go products appeal to today’s consumers.

    Keys to Success in Breakfast Foods: Nutrition & Convenience
    Maria Mascaraque, Health and Wellness Associate, Euromonitor International10.03.16
    Breakfast cereals alongside bread toasts are commonly consumed as part of the morning meal in developed countries. In the case of breakfast cereals, however, they have been suffering from an unhealthy perception due to a number of campaigns about their high sugar content. Action on Sugar in the U.K. has recently put them in the firing line, presenting a survey highlighting the startling sugar content of many popular brands, including the likes of Kellogg's Frosties, which contains 37 grams of sugar per 100 grams.

    To combat this perception, manufacturers are focusing on key trends to revive the category, following the lead set in bread. Ancient grains, clean labels, gluten-free options and development of convenient, on-the-go products have emerged as the way forward.

    In the Footsteps of Ancient Grains Bread
    Breakfast cereals are following the ancient grains trend in an attempt to shift their perception of unhealthiness. Kellogg Co, the global leading player in the breakfast cereal category, with 28% of the global market in 2015, has hopped on the bandwagon. In January 2016 the company launched its new Ancient Legends range in the U.K., which contain spelt, rye or quinoa, combined with almonds, sultanas, cranberries and seeds (pumpkin, flax, sunflower or chia seeds). This brand is similar to the Origins cereals launched by the company in the U.S. in the summer of 2015, following General Mills' launch of Cheerios Ancient Grains in January of the same year.

    This trend is also fueling the extraordinary performance of NH high-fiber breakfast cereals, which was the fastest-growing category globally within HW breakfast cereals in the review period (2010-2015), with $449 million growth in absolute terms.

    The future continues to appear bright; in April 2016, another major player, PepsiCo, launched a couple of new supergrain-based breakfast products under its Quaker brand in the U.S. Its new Quaker Supergrain Instant Hot cereal includes oats, barley, rye, flax and quinoa, while its new Real Medleys Supergrains Granola is a blend of oats, wheat, flax seeds, quinoa, sunflower seeds, amaranth and barley. The numerous product developments including ancient grains make clear that a niche market has gone mainstream, being far more accessible for consumers. Euromonitor International expects NH high-fiber breakfast cereals to grow by another 8% in 2015-2020.

    Gluten-Free Fuels Breakfast Cereals Performance
    The gluten-free trend has already moved to breakfast cereals as well. Although in value terms they were worth $303 million, accounting for just 1% of global HW breakfast cereals sales in 2015, they grew by an impressive 79% in the review period (2010-2015) and it was the second fastest-growing HW breakfast cereal category, with $134 million in absolute terms. This growth was fueled by developed countries, mainly the U.S., Australia and the U.K.

    Major brand owners have already developed gluten-free variants within their breakfast cereal portfolios. Gluten Free Corn Flakes from Nestlé has been in the Western European market since November 2014, followed by the gluten-free Special K variant launched by Kellogg Co in the U.S. in January 2015. General Mills has also joined the trend and launched its new gluten-free Cheerios in September 2015 in the U.S.

    Success of Clean Label
    The increasing desire for natural and sustainable products is also shown in breakfast cereals. Clean-labeled breakfast cereals were worth $3 billion in 2015, with labels claiming "no artificial colors" and "no artificial flavors" delivering $2 billion sales each. This is in line with major brands' ethics; for instance, General Mills has committed to removing artificial flavors and colors from all of its U.S. retail cereal by 2017, expecting that 90% of the portfolio will meet that goal by the end of 2016.

    Convenience in the Spotlight
    Nowadays, convenience is key for the morning meal. Working people in the developed world are rushing around, creating a need to develop portable options that can be eaten on the go, which also fit the desires of Millennials.

    Snack bars are already filling that gap and are widely consumed for breakfast. Within the HW variants, valued at $11 billion in 2015, NH granola bars and FF energy and nutrition bars are the ones accounting for the majority of the global market, with 37% and 32%, respectively. However, there are other offerings in this convenience-seeking landscape, like the breakfast buns "Tip Top Grab'n Go Fruit & Fibre" launched in Australia in 2014, described as quick and handy snack-sized buns that can be heated in the microwave, or the instant oatmeal pouch applied to Quaker Supergrains Instant Hot Cereals, which combines the ancient grains trend and convenient packaging.

    Getting back to snack bars, the ancient grains movement is also penetrating this category, with a mainstream player like PepsiCo having Quinoa Chocolate Nut Medley Granola Bars under its Quaker name, it is likely that other leading companies will launch new products in this line to compete. Gluten-free snack bars are also popular, with companies like Kind Holding Limited having this claim in its nut and fruit bars or Kellogg's Chewy Nut Bars also being considered as gluten-free options.


    For further insight contact Maria Mascaraque, Associate Health and Wellness at Euromonitor International, at maria.mascaraque@euromonitor.com.
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