The Manufacture of Breakfast Cereals describes current conditions, the growing trend towards food with less sugar and salt and other factors influencing the success of the sector. This report provides comprehensive profiles of 12 industry players ranging from the three major companies to smaller companies such as Alpen Food Company and Futurelife, both of which are partly owned by Pioneer, as well as the recently-listed Libstar Holdings, whose subsidiary Ambassador Foods manufactures breakfast cereals and cereal bars.
The Manufacture of Breakfast Cereals
This report focuses on the manufacture of breakfast cereals in South Africa, which remains resilient in difficult conditions. The market is dominated by three large companies, Tiger Brands, Pioneer Foods and Kellogg’s South Africa. Statistics SA figures show that bread and cereal prices were 3.1% cheaper in June 2018 than they were in June 2017, indicating significant price pressure in a highly competitive market.
This sector is operating under challenging trading conditions as a result of rising input costs and weaker consumer demand due to a lack of disposable income. Trends in the sector include increased demand for better nutrition in breakfast cereals and concerns over high sugar and carb content. Continued consumer preference for convenience has led to an increase in easy-to-use products such as breakfast biscuits and snack bars. The growing popularity of these products and rising health awareness among consumers are expected to influence demand and consumption of breakfast cereals.