Aug. 11 – China breakfast cereals market in China has been growing at an annual double digit rate over the past decade. China’s cereal food market is worth more than Rmb1 trillion. Imported breakfast cereal products became popular for consumers in large metropolises such as Beijing, Shanghai, etc. Middle high income classes are the primary consumers of breakfast cereal products in China.
China breakfast cereal market is in attractive growing. According to estimates, in China’s breakfast cereal food market, the potential of the breakfast cereal food market targeting the middle-aged and youth is the largest. As people’s living standard continues to rise, the middle-aged are major working group, they lead a busy life, they are paying more and more attention to keeping healthy and enhancing their body energy and physique resistance. As such, right breakfast cereal products have become the convenient choice to quicker fixed and stay fit and healthy. Market forecast has it that, in 2014-2050, the consumer market will jump from about Rmb4 trillion to about Rmb106 trillion. Breakfast cereals is predicted to see a constant value CAGR of 6% over the forecast period, much slower in constant value CAGR terms than the performance seen over the review period. The macro-economic situation can be treated as one of the factors that may slow consumption in retailing. More importantly, increasingly busy consumers’ weaker demand for hot cereals, which need hot water to be added, could be another important factor.
What are the key driving for breakfast cereal market in China? The rapid entry of imported foreign breakfast cereal food products is bound to change the landscape of China market competition. Multinational cereals food enterprises generally have greater advantages in terms of financial clout, R&D capability, and production and marketing model. Nevertheless, there are also adverse factors hampering the development of imported breakfast cereal food products. For instance, the traditional Chinese culture of breakfast food and food therapy has a far-reaching impact on China consumers, such as China Guilin is specialized in hot cereals. Its leadership of breakfast cereals is mainly due to its well-established sales network and brand reputation among consumers resulting from over 15 years’ operation in the Chinese market. The company’s brand position is mainly in the mid-price segment, which helps to build loyalty among the largest group of consumers and maintain a strong competitive position in the breakfast cereal market in China.
Major trends of China breakfast cereal market, at present, the growing availability of inexpensive breakfast cereal products from fast food chains will also threaten the further development of breakfast cereals. Furthermore, leading companies are increasingly focusing on RTE cereals, especially family breakfast cereals, which may lead to fewer new product launches in hot cereals. As a result, this category is likely to gradually become saturated, with slower growth momentum over the forecast period. Despite economic development in China generally, the breakfast cereals category continues to see double-digit value growth in 2015, underpinned by the increasing popularity of light and Western-style breakfast habits. Due to hectic lifestyles and the health trend, an increasing number of young consumers are opting for light breakfasts instead of traditional Chinese-style options such as rice. Moreover, Western-style breakfasts such as soaking RTE cereals in milk are becoming more popular in first- and second-tier cities, believed to be nutritional as well as time-saving. As a result, breakfast cereals benefit from consumers’ changing habits.
Chinese importers are interested in importing breakfast cereal into China market, in recent years, West-style breakfast cereal products are gain popularity in China, there are Import and Export businesses growing in China, including Chinese importers, logistics. The enormous market potential and development opportunities in China’s breakfast cereal food industry would not only induce more players in the importing breakfast cereals into China, but also offer some importing and exporting breakfast cereal food enterprises the chance of breaking out of their current predicament. With their existing R&D, production and marketing capabilities, cereal food enterprises possess greater competitive edge in moving into the China breakfast cereal food industry. For importing breakfast cereals into China, “China Breakfast Cereal Market Report, 2016-2019” is also available upon request, please contact with DCCC, or email to: firstname.lastname@example.org .