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Does SA’s Breakfast Cereals Market have a Future Life?

Insight Survey’s latest South African Breakfast Cereals Industry Landscape Report 2017 provides a dynamic synthesis of industry research, examining the local and global Breakfast Cereals industry from a uniquely holistic perspective, with detailed insights into the entire South African value chain.

Globally, the breakfast cereals market was valued at approximately US$43 billion in 2016 and is set to grow at a CAGR of 4.3% to reach an estimated US$55 billion by 2022. The US and Europe currently represent the largest markets worldwide, but developing regions such as Latin America is the fastest growing market with a CAGR of 7.9% by 2024. Kellogg’s is the global market leader in the breakfast cereals market, with General Mills and PepsiCo the other key players.

How are South African consumers viewing breakfast cereals? Are we also embracing trends in this market in order to ensure continued popularity and growth?

South Africa’s breakfast cereal consumers were expected to increase by a compound annual growth rate of 1.8% to 18.5 million purchasers in 2020.

There are a number of trends and drivers that could help further stimulate this market in the near future: a major trend is the increasing focus of South African consumers on healthy living. Low carb, low sodium, gluten-free or grain-free breakfast cereal options are proving popular among the health-conscious, along with banting-friendly products and porridges that are high in protein and omega-3.

Interestingly, in line with international trends, so-called cereal cafés have started trading in South Africa e.g. Cereal Killers in Durban. Additional factors that could drive this market forward include continued consumer preference for convenience (which has led to easy-to-use products such as breakfast biscuits being launched), product and packaging innovation (such as FUTURELIFE’s Smart Fibre 2-in-1), and government legislation (e.g. regarding salt and sugar content) which is forcing manufacturers to rethink their food compositions.

As with any industry, however, multiple restraints exist in our country that could negatively affect breakfast cereals market growth. The World Bank recently slashed South Africa’s economic growth outlook for this year from 1.1% (as forecast earlier in the year) down to 0.6%. SA’s low economic growth, decreasing disposable incomes and higher food inflation are impacting consumer spending and shopping patterns, for example, shifting consumers to purchase smaller pack sizes or move from well-known brands to ‘house brands’. Furthermore, existing mistrust regarding certain breakfast cereals’ sugar and salt content, as well as GM levels, could keep consumers from purchasing breakfast cereals and consider alternative breakfast and/or snacking options.

The Breakfast Cereals Industry Landscape Report 2017 (103 pages) provides a dynamic synthesis of industry research, examining the local and global Breakfast Cereal industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing and retailing trends to competitor and pricing analysis.

Some Key Questions The Report Will Help You To Answer:

  • What are the current market dynamics of the global Breakfast Cereals industry?
  • What is the size of the market (2012-2016), growth trends and forecasts?
  • What are the SA Breakfast Cereals industry trends, drivers, and restraints?
  • Who are the key manufacturers and retail players in the SA Breakfast Cereals industry?
  • What are the prices of popular Breakfast Cereals brands at various retail outlets in SA?

Please note that the 103-page PowerPoint report is available for purchase for R25,000 (excluding VAT). Alternatively, individual sections can be purchased for R9,000 (excluding VAT). For additional information simply contact us at info@insightsurvey.co.za or directly on (0)21 045-0202 or (010) 140- 5756.

For a full brochure please go to: SA Breakfast Cereals Industry Landscape Report 2017

About Insight Survey:

Insight Survey is a South African B2B market research company with more than 10 years of heritage, focusing on business-to business (B2B) market research to ensure smarter, more-profitable business decisions are made with reduced investment risk.

We offer B2B market research solutions to help you to successfully improve or expand your business, enter new markets, launch new products or better understand your internal or external environment.

Our bespoke Competitive Business Intelligence Research can help give you the edge in a global marketplace, empowering your business to overcome industry challenges quickly and effectively, and enabling you to realise your potential and achieve your vision.

From strategic overviews of your business’s competitive environment through to specific competitor profiles, our customised Competitive Intelligence Research is designed to meet your unique needs.

For more information, go to www.insightsurvey.co.za.

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