Historical Trends and Development of the breakfast cereal market
1. Executive Summary
Breakfast cereals are an important part of the British diet and a key sector of the grocery market in the UK, with over 90% household penetration. In 2000, 414,000 tonnes of breakfast cereals were sold in the UK, at a retail value of £1.1bn The breakfast cereals market is made up of two main sectors, firstly, the ready-to-eat sector, which consists of staples including corn flakes and wheat. Secondly, the hot cereals sector, which consists of cereals that require some kind of preparation, such as porridge, which, will be the main focal product for Outside The Box (OTB) cereals at the start of its operation.
Since the mid-nineties, consumption of breakfast cereals has shown steady growth, although in 2008, the UK economy was hit by the recession, which saw the sale of breakfast cereals alongside other food items slowdown. However, the consumption of hot cereals, which had been in long-term decline, has risen over the past 5 years. The cold weather experienced at the beginning and end of 2010, coupled with an awareness of the cholesterol-lowering properties of oats, has helped increase their popularity. This therefore, creates a gap in the market for OTB cereals to gain a good share of this market as its cereals are low in sugar, salt and saturated fat and rich in fibre, vitamins and iron.
Within the cereals market, the main growth has come from niche products, such as organic cereals and adult indulgence products, whilst growth in the hot cereals sector is being driven by `instant ', microwaveable varieties, which have attracted new users. Using the FRH technology, OTB hopes to gain a good percentage of this growth. Sales of organic cereals grew dramatically in 2000, as the products became more mainstream and well-known manufacturers entered the market. Weetabix, for example, launched its Nature 's Own range of wheat biscuits and malted wheat squares, while The Enjoy Organic Company, backed by RHM, introduced a range of five organic
Breakfast cereals are an important part of the British diet and a key sector of the grocery market in the UK, with over 90% household penetration. In 2000, 414,000 tonnes of breakfast cereals were sold in the UK, at a retail value of £1.1bn The breakfast cereals market is made up of two main sectors, firstly, the ready-to-eat sector, which consists of staples including corn flakes and wheat. Secondly, the hot cereals sector, which consists of cereals that require some kind of preparation, such as porridge, which, will be the main focal product for Outside The Box (OTB) cereals at the start of its operation.
Since the mid-nineties, consumption of breakfast cereals has shown steady growth, although in 2008, the UK economy was hit by the recession, which saw the sale of breakfast cereals alongside other food items slowdown. However, the consumption of hot cereals, which had been in long-term decline, has risen over the past 5 years. The cold weather experienced at the beginning and end of 2010, coupled with an awareness of the cholesterol-lowering properties of oats, has helped increase their popularity. This therefore, creates a gap in the market for OTB cereals to gain a good share of this market as its cereals are low in sugar, salt and saturated fat and rich in fibre, vitamins and iron.
Within the cereals market, the main growth has come from niche products, such as organic cereals and adult indulgence products, whilst growth in the hot cereals sector is being driven by `instant ', microwaveable varieties, which have attracted new users. Using the FRH technology, OTB hopes to gain a good percentage of this growth. Sales of organic cereals grew dramatically in 2000, as the products became more mainstream and well-known manufacturers entered the market. Weetabix, for example, launched its Nature 's Own range of wheat biscuits and malted wheat squares, while The Enjoy Organic Company, backed by RHM, introduced a range of five organic
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