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Cereals and grains

Here's what’s trending in the cereals and grains industry:

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Breakfast Cereals

  • Globally, breakfast cereals is forecasted to grow at 1.1% over the next five years in constant retail value terms.
  • In contrast, the MENA region will account for 3% of the total global retail value by 2021, growing at 4.4% over the same time period.
  • South Africa was the largest market, accounting for 32% of the region’s sales in 2016, while Saudi Arabia was among the largest remaining markets, generating 11% of sales.
  • In Saudi Arabia, volume sales of breakfast cereals rose by a 7%CAGR between 2011 and 2016, while constant value sales increased by a 12% CAGR.
  • Rising inflation has led consumers to switch towards lower priced breakfast cereals, leading some manufacturers to launch larger pack sizes with lower unit prices in order to maintain growth in volume sales, for example with Kellogg Co introducing a 1 kg pack of Kellogg’s Corn Flakes in 2015.
  • A growing health consciousness among breakfast cereals consumers has benefited brands with a health-oriented positioning such as Weetabix and Kellogg's All Bran.
  • Breakfast cereals is largely popular amongst Western expatriates in United Arab Emirates. There is ample room for growth stemming from other nationalities residing in the country to try out an alternative breakfast option.
  • Sorghum-based brands are affordable options, especially for low-income consumers as they attempt to seek more affordable breakfast options, since the commodity price increases made other types of breakfast cereals less affordable.
  • Hot cereals remains a Ramadan-specific product as it largely consists of oats, and is often used in a popular local meal item during Ramadan, Shorba.

Key trends and sales drivers include:

  • Cereal bars complementing the ‘on-the-go’ snack movement
  • ‘Trendy’ grains such as quinoa, buckwheat and spirulina that suit paleo and other specialist diets. 
Source: Euromonitor International

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