The global breakfast cereals market depicts the presence of an intensely competitive vendor landscape, notes Transparency Market Research on the basis of a newly published report. Such a competitive scenario mainly exists thanks to numerous players existing in this sector, coupled with low entry barriers. However, of all the businesses operating in this domain, Kellogg’s, PepsiCo, and General Mills depict a consolidated position by comprising about 50% of the total market shares in recent times. Most players are attempting to improve cereal quality, enhancing taste factor, and facilitating an increase in the nutritional content of their products. Manufacturers are also focusing on bringing forth innovative flavors to their products, in order to appear more lucrative to their customers.
From a statistical perspective, experts peg the global breakfast cereals market to gain revenue worth US$43.2 bn by 2019. This is a decent growth considering an initial revenue valuation of US$32.5 bn registered by the market in 2012. Thus growth is prophesized to occur at a healthy CAGR of 4.1% during the forecast period ranging from 2013 to 2019.
Rising Awareness Regarding Healthy Food Consumption Boosts Growth
A surge in awareness regarding consumption of highly nutritious breakfast foods is primarily driving growth in the global breakfast cereals market. Moreover, with booming e-commerce and retail industries, many manufacturers are able to sell popular products such as breakfast cereals, thereby driving the global breakfast cereals market. In addition, an increasing number of fitness freaks who demand consumption of healthy foods on a regular basis too is making the market expand at a spectacular pace in recent times. Furthermore, several companies are pouring extensive investments to facilitate innovative cereal manufacturing techniques as well as provide lucrative flavors to customers for increasing their retention. Lastly, cereals play a vital role in most breakfast types consumed all over the globe. Thus, an inherently high demand for these foods itself acts as a prolonged growth driving factor for the market.
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Lack of Trained Staff in Remote Regions Stunts Progress
However, several unreliable brands exist mainly on a local scale, which may not manufacture quality cereal products. These may be available for costs less than those sold by renowned brands, thereby eating into the sales of the latter. This is a key factor restraining the global breakfast cereals market. Moreover, provision of insufficient wages to workers in cereal manufacturing factories, shortage of expertise required for equipment manufacturing in remote regions, and improperly maintained safety of workers also are key growth obstacles. In addition, volatility in costs of raw materials needed to manufacture the cereals has been notably restraining this market too. In remote and underdeveloped regions, lack of trained staff might lead to less cereal production. Nonetheless, many companies are soon expected to expand their geographical reach as well as regulate production costs, thereby offsetting most restraints affecting the market.