Furthermore, through the market analysis It was found that Kellogg and Whitebait mainly lead the cereal industry, followed by Nestle and Jordan. These companies customer loyalty, which can make it harder for newer companies to enter this sector. As mentioned before, in the cereal market there are a large variety of targeted consumers like children, women, and families. The main key trends in the market are convenient snacks and consciousness towards health.
Because there is such an emphasis on the cold cereal market, brands are looking to create a variety of products to attract new customers. This has helped the industry to have more granola, gluten-free, and non-GMO products than ever before. Organic cereals are also on the rise. The cereal industry uses approximately million pounds of sugar each year, as reported by Scott Bruce and Bill Crawford.
Or to put that in a different way: That means kids who have one bowl of sugar-sweetened cereal per year are adding 1, teaspoons of sugar to their diet. Americans purchase about 2. Many cereals have begun to market the amount of protein they contain — like Cheerios Protein cereal.
Yet the FDA has also acknowledged that cereals may contain protein from animal matter from the manufacturing process from insects and even rats as well.
Because of this, consumers are beginning to rediscover hot cereals.
When a cereal is perceived to be healthy, then it typically does better in sales. When it is perceived as a cheap sugar high or has very little to offer nutritionally, then sales are going to lag.
What we are seeing here is the same trends that other industries selling sugar-sweetened products are experiencing: This means buying healthy cereals, hot cereals… or no cereal at all.
Within natural channels, both hot and cold cereal segments are growing, a direct contrast to the category as a whole. Sales are driven by the cold cereal segment, and gluten-free varieties. Younger men and women aged are most likely to indicate they are eating more hot and cold cereal, including both better-for-you and heavily sweetened varieties.
Younger men and women in the age demographic are most likely to indicate they are eating more hot and cold cereal, including both better-for-you and heavily sweetened varieties.
When cereal is marketed as a healthy alternative that promotes some sort of personal benefit, then brands are seeing sales rise. When cereal takes a general marketing approach to market products to younger consumers, then brands are seeing sales fall.
Because cereal itself is seen as inconvenient. In the age demographic, nearly half of all cereal eaters say they do this. Although brands are marketing cereal as a snack and offering consumers snack-sized individual portions, 1 in 3 cereal consumers say that they prefer to purchase their products in large boxes or bulk-size packaging.
Men especially prefer purchasing cereal in bulk.
According to CSP magazine, a trade publication covering the convenience store and fuel industries, cereal bar sales jumped by 2. Storage space for cereal is also a concern, with 1 in 3 saying that the boxes take up too much space. Another 1 in 3 say that their cereal goes stale before they can eat it, despite the industry adding flexible and resealable materials to their products to protect their freshness.
This means there is a natural niche market for the cereal industry to target with individuals who cannot eat wheat. About 1 in people are believed to have Celiac disease in the US, which prevents them from eating many cereals today.
From research presented by the Harvard School of Public Health, eating cereal regularly after a serious heart event could significantly improve mortality rates. Consumers are looking for a nice balance between sweet and healthy. This is why the top-selling cereals are seen as having certain health benefits, but also have a nice dose of sugar to add in the morning.
Consumers already see cereal as a versatile food product that can be consumed virtually any time and anywhere. They just want to feel more satisfied when they do eat it.
At the moment, this means consumers are looking to hot cereals to make that happen.
If cold cereals can provide this feeling as well, then the growth projections could rocket upward in the next decade for this industry.Breakfast Cereal Market in the US Breakfast Cereal Market in the US Breakfast cereal is made from processed grains, such as wheat, rice and oats, and may incorporate fruits It is available in both cold and hot formats that can be either consumed dry or .
A Favorite Cereals & breakfast provider across the world is Kelloggs, which is admired for its marketing strategies. Here is the SWOT analysis of Kelloggs.
Kelloggs has acquired various companies over the years which helped it in optimizing the use of its resources. The Ready-to-Eat Breakfast Cereal Industry in The warehouse group pest analysis: strategic management.
The warehouse group pest analysis The external environment can be grouped into different environmental segments, the Political/legal segment, economic, socio-cultural and technological segments, otherwise known as PEST.
Pest analysis for cereal manufacturer? Because cereal manufacturers deal in grains primarily when making their product they are commonly dealing with grain beetles and moths of various sorts.
Commonly referred to a s stored product pests. Cereal Market Research PESTLE analysis The PESTLE analysis, which is sometimes recognized as pest analysis is something that businesses could use for marketing. Breakfast Cereals in Uk Breakfast Cereals in United Kingdom Introduction: Aim: The aim of this report is to discuss whether The change of macroeconomic situation is an opportunity or threat for United Kingdom’s breakfast cereal industry.
Compare the external microenvironment that affects firms in which breakfast cereal industry operates with the help of PEST analysis.