Cereal market
Post by Sandra

Sales of cereals in the UK have increased slightly in value in the last couple of years (inflation), but volumes overall been fallen. The two growth areas of the market are hot cereals and museli as these tend to be seen as healthier (low carb) options. (Euromonitor, 2015).

The Financial Times reports that on-the-go options (biscuits, cereal pots and breakfast yoghurt pots) are set to increase in sales. Volumes of traditional cereals have fallen over the last 4 years. Oat-based cereals and granola are growth areas. Buyers want more protein, less carbs.

Tradition porridge and muesli are now seen as healthier (Just Food, 2013) with boxed cereals having an image of poor taste, low nutrients. Growth is higher at the premium end of the market. The breakfast skipper market is growing - bars and biscuits.

Keynote (2015) reports the ready to eat (cold) cereal market is rapidly decreasing against hot cereals.

Additions to SWOT analysis

Opportunities:
Market interest in "healthier" breakfast cereals
Move into on-the-go, hot cereals and gluten free market
Interest in protein rich cereals (eg nuts)
Premium products market share is growing
Fully utilise social media as this is an effective marketing avenue

Weaknesses:
Larger companies sell 60% of their products on discount, which small companies cannot afford to do.
Demand for gluten-free, on-the-go and hot cereals increasing Spoon do not currently operate in this market.