Executive Summary

The global reduced fat cereals market is expected to grow at a CAGR of 5.2% during the forecast period (2021-2026). The market is driven by the increasing health consciousness among consumers, the growing demand for low-fat breakfast options, and the rise in the number of breakfast cereal manufacturers. The corn flakes segment is expected to hold the largest share of the market, while the online sales channel is expected to witness the fastest growth during the forecast period.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The global reduced fat cereals market is expected to grow at a CAGR of 5.2% during the forecast period (2021-2026).
• The corn flakes segment is expected to hold the largest share of the market, while the online sales channel is expected to witness the fastest growth during the forecast period.
• The market is driven by the increasing health consciousness among consumers, the growing demand for low-fat breakfast options, and the rise in the number of breakfast cereal manufacturers.
• The Asia Pacific region is expected to witness the fastest growth during the forecast period, due to the increasing population and rising disposable income levels in the region.

Market Analysis

Market Drivers

1. Increasing Health Consciousness among Consumers

The increasing health consciousness among consumers is one of the key drivers of the global reduced fat cereals market. Consumers are becoming more aware of the health benefits of consuming low-fat foods and are looking for nutritious breakfast options. Reduced fat cereals are a popular breakfast option among health-conscious consumers who are looking for a low-fat and nutritious meal to start their day.

2. Growing Demand for Low-Fat Breakfast Options

The growing demand for low-fat breakfast options is another key driver of the global reduced fat cereals market. Consumers are increasingly looking for breakfast options that are low in fat and calories, and reduced fat cereals fit the bill perfectly. Reduced fat cereals are a popular breakfast option among consumers who are looking for a nutritious and low-fat meal to start their day.

3. Rise in the Number of Breakfast Cereal Manufacturers

The rise in the number of breakfast cereal manufacturers is also driving the growth of the global reduced fat cereals market. With the increasing demand for low-fat breakfast options, more and more breakfast cereal manufacturers are entering the market. This is leading to increased competition in the market and is driving innovation and product development.

Market Restraints

1. Availability of Alternatives

The availability of alternatives is one of the key restraints of the global reduced fat cereals market. There are many other breakfast options available to consumers, such as eggs, toast, and yogurt, which may not be low in fat but are still perceived as healthy and nutritious. This may limit the growth of the reduced fat cereals market, as consumers may opt for these alternatives instead.

2. Price Sensitivity

Price sensitivity is another key restraint of the global reduced fat cereals market. Reduced fat cereals are often priced higher than regular cereals, which may deter price-sensitive consumers from purchasing them. This may limit the growth of the market, as price is an important factor for many consumers when making purchasing decisions.

Market Opportunities

1. Growing Demand from Emerging Markets

The growing demand from emerging markets is one of the key opportunities of the global reduced fat cereals market. Emerging markets such as China, India, and Brazil have large populations with increasing disposable incomes. As these consumers become more health-conscious, the demand for reduced fat cereals is expected to increase, providing significant growth opportunities for manufacturers.

2. Innovations in Product Development

Innovations in product development are also an opportunity for the global reduced fat cereals market. With increasing competition in the market, manufacturers are focusing on product innovation to differentiate themselves from their competitors. This is leading to the development of new and innovative reduced fat cereal products that cater to different consumer preferences and needs.

Market Dynamics

The global reduced fat cereals market is a dynamic market that is driven by various factors. These factors include increasing health consciousness among consumers, growing demand for low-fat breakfast options, and the rise in the number of breakfast cereal manufacturers. However, the market also faces challenges such as the availability of alternatives and price sensitivity. To succeed in this market, manufacturers need to focus on product innovation, marketing, and pricing strategies to meet consumer needs and stay ahead of their competitors.

Regional Analysis

The global reduced fat cereals market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region is expected to witness the fastest growth during the forecast period, due to the increasing population and rising disposable income levels in the region. North America is expected to hold the largest share of the market, due to the high health consciousness among consumers and the presence of leading manufacturers in the region.

Competitive Landscape

Leading companies in the Reduced Fat Cereals market:

1. General Mills, Inc.
2. Kellogg Company
3. Nestlé S.A.
4. Post Holdings, Inc.
5. The Quaker Oats Company (PepsiCo, Inc.)
6. The Kraft Heinz Company
7. Weetabix Limited
8. Ralcorp Holdings, Inc. (Conagra Brands, Inc.)
9. Cereal Partners Worldwide (General Mills, Inc. & Nestlé S.A.)
10. Bob’s Red Mill Natural Foods Inc.

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The global reduced fat cereals market is segmented based on product type, distribution channel, and region. By product type, the market is segmented into corn flakes, oats, wheat flakes, and others. By distribution channel, the market is segmented into supermarkets, hypermarkets, convenience stores, and online channels. By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Category-wise Insights

Corn flakes are the most popular type of reduced fat cereals, accounting for the largest share of the market. This is due to the high popularity of corn flakes as a breakfast cereal and the availability of a wide range of flavors and brands. Supermarkets are the most popular distribution channel for reduced fat cereals, due to the convenience and variety they offer to consumers.

Key Benefits for Industry Participants and Stakeholders

• Provides an in-depth analysis of the global reduced fat cereals market and its growth prospects.
• Provides insights into key market drivers, restraints, opportunities, and challenges.
• Provides a comprehensive analysis of the key players in the market and their strategies.
• Provides insights into regional and category-wise trends in the market.

• Provides a detailed analysis of the competitive landscape of the market.
• Provides information on key industry developments and the impact of Covid-19 on the market.

SWOT Analysis

Strengths:

• Increasing health consciousness among consumers is driving demand for reduced fat cereals.
• Growing demand for low-fat breakfast options is providing significant growth opportunities for manufacturers.
• Innovations in product development are leading to the development of new and innovative reduced fat cereal products.

Weaknesses:

• Availability of alternatives may limit the growth of the market.
• Price sensitivity may deter price-sensitive consumers from purchasing reduced fat cereals.

Opportunities:

• Growing demand from emerging markets such as China, India, and Brazil.
• Innovations in product development are providing opportunities for manufacturers to differentiate themselves from their competitors.

Threats:

• Intense competition in the market is leading to price wars and margin pressure.
• Increasing regulations and labeling requirements may increase costs for manufacturers.

Market Key Trends

1. Increasing Demand for Organic and Natural Reduced Fat Cereals

The increasing demand for organic and natural reduced fat cereals is a key trend in the global reduced fat cereals market. Consumers are becoming more health-conscious and are looking for breakfast cereals that are made from natural ingredients and are free from artificial preservatives and additives.

2. Rise in Online Sales

The rise in online sales is another key trend in the global reduced fat cereals market. Consumers are increasingly shopping online due to the convenience and ease of access to a wide range of products. This has led to an increase in the number of manufacturers selling their reduced fat cereals online.

Covid-19 Impact

The Covid-19 pandemic has had a significant impact on the global reduced fat cereals market. With more people staying at home and working remotely, there has been a shift in consumer behavior towards healthier and more nutritious breakfast options. This has led to an increase in demand for reduced fat cereals, as consumers look for low-fat and nutritious breakfast options.

However, the pandemic has also led to disruptions in the supply chain and manufacturing processes, which have affected the production and distribution of reduced fat cereals. The closure of retail stores and the restrictions on movement have also led to a shift in consumer behavior towards online shopping, which has led to an increase in the online sales of reduced fat cereals.

Key Industry Developments

• In April 2021, Kellogg Company launched a new range of reduced sugar and fat cereals in the UK. The new range includes Coco Pops, Rice Krispies, and Corn Flakes, and is aimed at health-conscious consumers.
• In October 2020, Nestle SA announced the launch of a new range of organic cereals in Europe. The new range includes organic versions of popular cereal brands such as Cheerios, Chocapic, and Nesquik.

Analyst Suggestions

To succeed in the global reduced fat cereals market, manufacturers need to focus on product innovation, marketing, and pricing strategies to meet consumer needs and stay ahead of their competitors. Some of the key suggestions for manufacturers include:

• Investing in research and development to develop new and innovative reduced fat cereal products.
• Focusing on marketing and advertising campaigns to create awareness and increase brand visibility.
• Offering competitive pricing and promotions to attract price-sensitive consumers.

Future Outlook

The global reduced fat cereals market is expected to continue to grow in the coming years, driven by the increasing health consciousness among consumers, the growing demand for low-fat breakfast options, and the rise in the number of breakfast cereal manufacturers. The Asia Pacific region is expected to witness the fastest growth during the forecast period, due to the increasing population and rising disposable income levels in the region. Manufacturers who can innovate and adapt to changing consumer needs are expected to succeed in the market and capitalize on the opportunities presented by emerging markets and the growing demand for natural and organic reduced fat cereals.

Conclusion

In conclusion, the global reduced fat cereals market is a dynamic and growing market that offers significant opportunities for industry participants and stakeholders. The market is driven by increasing health consciousness among consumers, growing demand for low-fat breakfast options, and the rise in the number of breakfast cereal manufacturers. However, the market also faces challenges such as the availability of alternatives and price sensitivity. To succeed in this market, manufacturers need to focus on product innovation, marketing, and pricing strategies to meet consumer needs and stay ahead of their competitors. The future outlook for the market is positive, with significant growth opportunities expected in emerging markets and in the natural and organic reduced fat cereals segment.