Evolution of Breakfast Industry in India

Indians have inclination towards consuming their quintessential hot, cooked breakfast.

However, Indians lifestyles are changing especially of people living in urban with increasing spending power, greater time-poverty, higher need for convenience, and health consciousness. These factors have encouraged Indians, to opt and focus on breakfast .The influence of ‘western’ lifestyles and eating trends has played an effective role in opening the gateway for experimenting with different tastes and varying eating preferences for breakfast.

Not just the lifestyles but Incidences of diseases such as heart attacks, diabetes, cholesterol and blood pressure are pushing consumers to switch eating preferences from indulgent to wholesome, from unhealthy to healthy diet.

Breakfast manufacturers are likely to benefit from this trend.

Millennials

Millennial, between the age group of 18 and 35 years of age is becoming the driver force in consumer markets and redefining India’s consumption story. With increasing focus on jobs, studying and high amount of time being spent on social media means less time for meal during the day time, millennials understand the importance of a healthy and good breakfast early in the morning.

Numbers

Mohit Anand, managing director, India and South Asia, Kellogg’s India, said that he believes: “One in four urban Indians actually skip breakfast and nearly 70 per cent have a nutritionally inadequate breakfast, led in part by stressed and busy working lives. This presents a strong case for the increase in consumption of packaged, nutritious and convenient options”

According to “India Breakfast Cereal Market Outlook, 2021”, India’s breakfast cereal market was growing with a CAGR of 22.

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07% over last five years. The India Breakfast Cereals Market is expected to reach USD 889 million by 2023 at a fastest CAGR of 20%, during the forecast period. The India Breakfast Cereals sale has surpassed 69 million Kg in 2017, registering a volume CAGR of 5.6%, during the forecast period. The consumption of Breakfast Cereals observed a faster growth during the past five year, which is expected to continue.

Kellogg’s India, Bagrry and PepsiCo Quaker are the three leading companies capturing more than 75% of the market.

Challenges for Manufacturers

Going into the future to maintain the growth in breakfast industry, it won’t be obviously just about product innovation. Breakfast manufacturing Companies should think of innovation of other kinds that meet the need for health and speed—innovations at the shelf, of the pack, of the production process—because there is no shortage of adults, especially Millennials, who want but aren’t getting the early-in-the-day nutrition they need to get a jump start on the day.

Companies need to fight on many fronts firstly they need to convince customers that they are having nutritional benefits combined with convenience and yet, they are not want compromising on taste.

The data shows that breakfast won’t go away and is here to stay, but it will look different, and it will occur in different places with different foods. There would be people who would want to sit down, relax, and enjoy the most important meal of the day. How can you make them feel they have done so, if they don’t actually have the time? How are manufacturers going to tap the rural markets which has a greater potential for growth?