The global breakfast food market is expected to grow by USD 105.3 billion from 2024 to 2028, driven by a preference for healthier, plant-based options despite challenges such as food price volatility.
Global Breakfast Food Market to Experience Significant Growth by 2028
New York, 19 July 2024 – The global breakfast food market is set to expand considerably, with estimates suggesting an increase of USD 105.3 billion from 2024 to 2028, according to a recent Technavio report. The market is anticipated to grow at a compound annual growth rate (CAGR) of 4.37% during this period.
The report highlights various driving factors and challenges facing the market. One notable trend boosting growth is the increased frequency of breakfast product launches, particularly plant-based alternatives. The rising consumer preference for plant-based diets, driven by health and environmental considerations, is a significant contributor to this trend. Traditional breakfast items like eggs, bacon, and dairy products are increasingly being replaced by plant-based options, including a variety of non-dairy milks.
Despite the promising growth, the market does face obstacles. Chief among these is the fluctuation in food prices. The COVID-19 pandemic has fragmented global supply chains, causing logistical bottlenecks, reduced agricultural output, and consequently higher food prices. The situation is further exacerbated by geo-political tensions, such as the Russia-Ukraine conflict, which have led to spikes in grain prices, directly impacting the affordability of breakfast cereals.
The market is quite fragmented, with key players including well-known names such as Kellogg Co., Nestle SA, PepsiCo Inc., and Mars Inc., among others. Companies are actively diversifying their product portfolios to meet the growing demand for healthier breakfast options, like fibre-rich cereals and low-calorie, high-protein ready meals.
A detailed regional analysis reveals Asia-Pacific (APAC) as a significant contributor, accounting for 34% of the market share. The United States, China, Germany, Japan, and India are identified as key countries driving growth in their respective regions.
Breakfast staples like cereals, dairy products, and baked goods remain popular. However, consumer preferences are increasingly leaning towards products with higher fibre, protein, and essential nutrients. This shift is largely influenced by an increased awareness of health issues such as obesity, diabetes, and high cholesterol, which are prompting consumers to seek out more nutritious options.
Retail channels catering to this burgeoning market are also evolving. Traditional offline channels such as convenience stores and departmental stores continue to play a crucial role, but online platforms and speciality stores are becoming increasingly important. These outlets provide a broad array of products that cater to diverse dietary patterns and health-conscious consumers.
Companies are thus investing heavily in research and development to adapt to these changing consumer preferences, ensuring the continuous introduction of innovative breakfast options into the market. While this adds competitive pressure, it is also expected to enhance the overall market growth.
While the market outlook remains positive, it is clear that navigating the challenges posed by price volatility and supply chain disruptions will be crucial for maintaining momentum. As companies strategise to mitigate these risks, the sector is set to become more dynamic, aiming to balance consumer demand for convenience, taste, and nutritional value.