Breakfast cereal players are moving beyond the cereal category to strengthen their entire breakfast snacking portfolio in India. Snacking industry has been growing with high-flying rates over the last some years. Also, it gives players a bigger pool and an opportunity to tap into more consumers along with opening up of new consumption occasions for the products. Health and wellness are the new buzzwords for all the product launches happening in the Indian market.

By Anita Patil, Assistant Manager at Bonafide Research

Baba Ramdev’s Patanjali brand has been creating strong word of mouth since it entered the food space through its natural supplements in the products. After earning impressive revenue growth in the last three years and laddering as a potential threat to almost all the leading brands, existing players today have rushed to re-position themselves and produce healthy food. Apart from Kellogg and PepsiCo, a bunch of multinational and domestic firms including Bagrry’s India, Marico Limited, ITC Limited, MTR Foods, Dr Oetkers, etc. made inroads in the breakfast market during the past few years. Products such as muesli, oats, ready-to-cook packets for dosa, idli, uttapam and dhokla were launched by these companies as demand for healthier, ready-to-cook breakfast rose in the Indian market.

According to recently published report of Bonafide Research 'India Breakfast Cereal Market Outlook, 2022' the oats category is set to cross Rs. 700 crore mark in 2018. Despite oats being very healthy, players are expanding their product portfolio to include more and more regional/ local snacking variants. With a huge young population base and office-goers, Indian consumers are on a look out for packaged food that offers convenience, nutrition and variety. This changing attitude has led several brands to rethink their portfolios and communication strategies.

KELLOGG'S EXPANDING TO SNACKING INDUSTRY

Kellogg's forayed into the snacking industry way back in 2014 by introducing Pringles® in India. This year the company has come up with another such product called - Kellogg’s Chocos Fills to further strengthen this space. In October 2017, the company launched Kellogg’s Chocos Fills priced at Rs. 20 for 32 gm pack and Rs. 185 for a 250 gm pack. This is a unique product which can be eaten both as a breakfast cereal and as a snack. Made with three nourishing grains - rice, oats and wheat; it can be consumed with cold or hot milk or straight from the pack. The product is now available in foremost general and modern trade outlets across the country. Kellogg India has also launched a new cereal called Kellogg’s Special K Protein and Fiber earlier this year. Available in a 445 gram box for Rs. 199, this new cereal is an extension in the Special K portfolio, which is been pushed aggressively by the company. Kellogg’s Special K Protein and Fiber is cranberry flavoured, has been made with added protein & fiber and also contains 8 essential vitamins & iron.

PEPSICO TRYING BREAKFAST INNOVATION

PepsiCo India Holdings Pvt. Ltd. launched ready-to-cook range tailored to local tastes in March 2017, a decade after the company brought Quaker brand to India. Ready-to-cook oats dosas, idlis, upmas, khichdis in single-serve (Rs. 15) and multi-serve packs (Rs. 50) were among the products launched to focus on the breakfast market in India. Brand Quaker has a vast market in southern India and thus breakfast variants that appeal more to southern consumers are chosen deliberately. Towards the end of the year, PepsiCo is planning to launch more such products under Quaker Nutri Foods brand. The company is now looking to shift its focus from unhealthy products to healthy & better ones as a part of its global initiative.

Even McDonald’s raised eyebrows when the fast food chain announced plans to introduce local-inspired offerings to its breakfast menu in India. One such product on the list and in the news was the McDosa (Masala Dosa burger) which was inspired by the popular South Indian breakfast-masala dosa. Large multinational food companies turning to ethnic Indian breakfast varieties surely indicates that the out-of-home breakfast space in India holds significant opportunity.

MAJOR COMPANIES

Major companies operating in the breakfast cereal market of India are Kellogg India Pvt. Ltd., PepsiCo India Holdings Pvt. Ltd., Bagrrys India Limited, Marico Limited, GlaxoSmithKline Consumer Healthcare Ltd., Nestle India Limited, Patanjali Ayurved Limited, Mohan Meakin Limited, Express Foods Pvt. Ltd. and Future Consumer Enterprise Ltd.

Report: India Breakfast Cereal Market Outlook, 2022

Base Year: 2016

Estimated Year: 2017

Forecast Year: 2022

Pages: 106, Figures: 37, Tables: 21

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