Fortified Breakfast Cereal Market

Fortified Breakfast Cereal Market Size (2024 to 2029)

fortified breakfast cereal market share value is expected to grow at a CAGR of 11.2% during the forecast period 2024-2029 to reach USD 27 billion by 2029 and 15.65 billion by 2024.

Fortified foods have additional vitamins and minerals that are not naturally present in them. The purpose of fortification is to enhance the levels of specific nutrients, which is commonly done for foods that are regularly consumed by both adults and children, such as grains, milk, and juice. Among these, breakfast cereals, especially total cereal, are frequently fortified, offering significant amounts of nutrients like vitamin A, thiamine, riboflavin, niacin, vitamin B6, vitamin B12, vitamin D, folic acid, zinc, iron, and calcium. For instance, cornflakes are notably rich in iron due to successful fortification techniques that enrich them with essential vitamins and minerals. As a result, the global fortified breakfast cereal market is projected to experience rapid growth during the forecasted period.

The opportunities for the global fortified breakfast cereal market lie in the growing urbanization and westernization of daily diet. According to the Food Agriculture Organisation of the United Nations, the Asian region is experiencing significant changes in dietary patterns due to factors like rapid economic growth, urbanization, and globalization. This diversification is causing a confluence towards a Western diet driven by the globalization of the urban middle class. The rise of global supermarket chains and fast-food restaurants further strengthens this trend, making Western food influences more appealing to consumers in various regions. As a result, there is a clear direction for market players to invest in the fortified cereal market, as these products align with the changing dietary preferences and nutritional needs of the urban population. 

Fortified Breakfast Cereal Market Drivers:

The major market drivers to have an impact on the global fortified breakfast cereal market include increased adoption of healthy lifestyles and the influence of Western food culture.  As people seek to improve their dietary habits, fortified foods become more appealing due to their enriched nutritional content and the adoption of the Western lifestyle, particularly in the United States, where many individuals do not meet the recommended dietary intake for certain vitamins and minerals. Fortified foods, including breakfast cereals, present a convenient solution to address these nutritional gaps. For instance, a recent study highlighted the positive impact of fortified foods on nutrient intake, specifically noting the increased consumption of folate and vitamins A and C. This fortification has also proven successful in reducing the occurrence of neural tube defects, a prevalent birth defect in North America. Thus, recent trends in the breakfast cereal segment indicate its continuous growth and prominence in the market.

Fortified Breakfast Cereal Market Restraints:

The notable market restraints observed are the high cost of fortified cereals as well as alternative breakfast food. Fortified cereals are more consumed in the western region. Moreover, these cereals are high-cost products and cannot be afforded by low-and-middle income class people. Due to these problems, alternative foods are available in the market which can compensate for the nutrient requirement of any individual. Some of them are nutritional yeast (an excellent source of Vit B), fortified plant-based milk (for example, soy milk, almond milk, oat milk, and many more), eggs, and green vegetables. Despite the popularity of fortified cereals, the availability of these alternative foods poses a challenge to the global fortified breakfast cereal market. Additionally, traditional breakfast foods continue to dominate, further impacting the market's growth.

Impact of COVID-19 on the Market:

The global COVID-19 pandemic had a significant impact on businesses worldwide, disrupting their operations across various industries. To control the rapid spread of the disease, numerous countries implemented lockdown measures, resulting in the temporary closure of manufacturing facilities and a halt in production. Meanwhile, the market demand for fortified breakfast cereal experienced a notable upswing. There was a significant increase in at-home breakfast consumption, leading to a resurgence in the popularity of cereals for breakfast. However, the global availability of these fortified breakfast cereal products was affected due to the scarcity of cereals and grains. The disruption of the supply chain caused by import and export restrictions imposed by various countries affected the global fortified breakfast cereal market. These factors have significantly hindered the global fortified breakfast cereal market growth during the pandemic period.

REPORT COVERAGE: 

This research report on the Global Fortified Breakfast Cereal Market has been segmented and sub-segmented based on cereal type, nutrients type, distribution channel, and region. 

Global Fortified Breakfast Cereal Market - By Cereal Type:

• Wheat
• Rice
• Barley
• Oat
• Corn
• Others

Based on cereal type, wheat has always dominated the global fortified breakfast cereal market and is anticipated to dominate as well in the projected period from 2023 to 2028. This market expansion is linked to wheat, one of the first cultivated grains and a key cereal crop (several Triticum species). In modern times, meals, morning cereals, and flour for baked goods are all made from wheat. Since fortification varies by region, cereals that have been fortified are more prevalent in Western nations. And western countries have a high consumption of wheat products, which turns out to give high market demand for the global fortified breakfast cereal market. Conservely, rice is the second most demanded cereal product based on consumption. Asia Pacific region is the major consumer of rice and rice-based product. Thus, fortified rice breakfast is anticipated to have the fastest CAGR throughout the forecasted period.

Global Fortified Breakfast Cereal Market - By Nutrients Type:

•  Vitamins
•  Minerals

Based on nutrient type, most commonly, cereals are fortified with vitamins. Thus, vitamins are expected to have a larger market share in the global fortified breakfast cereal market in the projected period. For instance, Nestlé breakfast cereals undergo fortification, which involves the addition of 5 vitamins and two minerals to enhance their nutritional value. These fortified nutrients include riboflavin, niacin, B6, folic acid, pantothenic acid, iron, calcium, and, occasionally, vitamin D.

Global Fortified Breakfast Cereal Market - By Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others

Based on the distribution channel, supermarkets & hypermarkets held the largest share of the global fortified breakfast cereal market, accounting for approximately 50% of its overall value in 2022. However, the market's growth is being propelled by the expansion of retail infrastructure, leading to a rise in the number of supermarkets & hypermarkets in urban areas across Asia, the Middle East, and Africa. This increased presence in these regions is contributing to the overall market growth for the global fortified breakfast cereals market.Online stores are an emerging platform, and it is now common after the COVID-19 pandemic. Consumers can freely place their orders with a lot more varieties and options. On the other hand, convenience stores have less capacity. Thus the quantity of breakfast cereals is less common in these stores. Nevertheless, the market demand for these breakfasts is rising, making even small stores increase the capacity of breakfast cereals holding. 

Global Fortified Breakfast Cereal Market - By Region:

• North America 
• Europe 
• Asia-Pacific 
• Latin America 
• Middle East and Africa 

Based on region, North America dominates the fortified breakfast cereals market in terms of market share and revenue, with around 41% in 2022. This dominance can be attributed to the region's significant increase in consumption of fortified breakfast cereals and its highest penetration rate worldwide. North America brags the highest per capita consumption of fortified cereals, further contributing to its leading position in the global market.

Europe is projected to maintain steady market growth in the global fortified breakfast cereal market. This can be attributed to several factors, including the growing awareness of healthy eating habits and the rise in disposable income among consumers in the region. Additionally, key manufacturers in European countries are continuously introducing new and innovative cereal products, which are expected to boost sales and drive the fortified cereal market's expansion in the coming decade.

The Asia Pacific region is anticipated to exhibit the fastest growth rate in the global fortified breakfast cereal market. This growth can be attributed to shifting consumption patterns and a preference for healthier food products in the region. In Asia, the Breakfast Cereals market is projected to experience a substantial growth rate of 8.01% between 2023 and 2028, resulting in a market volume of USD 27.89 billion by 2028. As a result, there is a significant global increase in the consumption of breakfast cereals.

The rest of the world is also expected to experience considerable growth, with a noteworthy CAGR in the forecasted period.

KEY MARKET PLAYERS:

Key Market players of Global Fortified Breakfast Cereal Market are General Mills Inc. (U.S.), The Hain Celestial Group, Inc. (U.S.), Kellogg's Co. (U.S.), Nestlé SA (Switzerland), Bob’s Red Mill Natural Foods (U.S.), Nature's Path Foods (Canada), BARBARA’S (U.S.), Hometown Food Company (U.S.), The Quaker Oats Company (U.S.), Avena Foods, Limited (Canada), Northern Quinoa Production Corporation (Canada), LOVEGROWN INC. (U.S.), Gluten-Free Prairie (U.S.), The Kraft Heinz Company (U.S.), Conagra Brands, Inc. (U.S.)

RECENT HAPPENINGS IN THE MARKET:

• In June 2023, Love Child Organics, a manufacturer of organic baby food, was acquired by Nature's Path Organic Foods. This purchase demonstrates Nature's Path Organic Foods' dedication to enhancing consumer and family access to organic food and strategically puts the business in the booming infant food industry, which is estimated to be worth $499M in Canada and $8.5B in the US.
• In April 2023, Kellogg’s Eggo introduces three brand-new flavors. These brand-new products, which will be available starting in April, are based on consumer favorites, such as the Eggo Vanilla Bean Grab & Go Waffles, Eggo Chocolatey Chip Banana Waffles, and Eggo Berry Blast Mini Toast Waffles.  

 In Feb 2022, Nestle SA introduced and expanded its product range in the UK by launching Shreddies The Honey One, a cereal variant that features whole grain as its primary ingredient