This is marketing research on the Breakfast Food industry and can include information on the background, market structure, definitions, competitors, trends and developments of breakfast food and is related to other topics such as cereal, yogurt, eggs, snacks and diets.

Table of Contents

Table of Contents

1 Market Structure 
2 Industry Definitions 
3 Market Metrics 
4 Industry Players 
5 Recent Trends and Developments 
6 Sources

Market Structure

The industry is built upon the large manufacturing communities that import grain and other needed materials. Materials such as grain are brought in from areas of the central US and food additives are imported from around the globe.

This generally is a recession resistant industry. It was impacted significantly, however, in the middle of 2008 with the dramatic rise in commodity prices. Not only did breakfast food manufacturers face high fuel costs, but basic raw material costs had almost doubled or even tripled on some commodities. A staple raw material, corn for example, had been negatively impacted as it was used as a component of ethanol, a basis of alternative fuels. With the price of oil exceeding $140 per barrel in mid 2008, the demand of corn (i.e. as a basis of ethanol) shot up and manufacturers took a hit to the bottom line. In many cases, companies passed on the price increases to consumers and many products, such as breakfast cereals, saw significant price increases at the retail level.

Late 2008 saw a reversal of fortune for basic commodities. With the global recession hitting in the 3rd quarter, commodities price hikes reversed and prices have plummeted. This has benefited breakfast food manufacturers, but they now bear the burden of a shrinking consumer spending pattern in 2009. At the retail level, some firms have continued to do well. The consumer needs to eat, but will continue to shift their spending. It is likely that brand names will suffer some erosion as consumers shift to lower priced generic alternatives. In the related dining-out segment, the effects are quickly seen. Starbucks continues to face headwinds while it reformats its approach, while McDonalds has continued to gain ground.

Industry Definitions

• Cereal - a plant (as a grass) yielding starchy grain suitable for food

• Ready to eat meal – Meal that requires no preparation

• Snack-bar – Mostly nutritious bar made from breakfast food items, granola, fruits, dry milk

• Toaster Pastry – Pastry filled with sweet filling that can be warmed in the toaster

• Waffle - a crisp cake of batter baked in a waffle iron

Market Metrics

The following data is from 2006 sales figures:

Top 10 Ready-to-eat-cereal vendors

Vendor	                  Dollar Sales	           Unit Sales

Kellogg Co.	      $6,835,080,704	        2,226,265,856
General Mills	      $2,238,298,624	          637,755,840
Kraft Foods Inc.        $1,029,982,560	          344,343,328
Quaker Oats Co.           $581,412,928	          200,987,632
Private Label             $554,467,648	          240,552,928
Malt-O-Meal Co.           $141,202,352	           56,953,272
McGee Foods Corp.          $16,902,996	            8,102,399
Nature's Path              $14,225,237	            3,878,437
Barbara's Bakery           $13,527,515	            3,703,454
Health Valley              $10,293,783	            2,914,930

Top 10 Toaster pastries/tart Brands

Brand Name	                  Dollar Sales                Unit Sales
	
Kellogg's Pop-Tarts                 $331,125,248	       152,558,304
Private Label                         60,536,288	        40,977,328
Thomas                                26,194,058	        12,188,326
Quaker Fruit & Oatmeal Toastables     19,126,590	        10,875,227
Kellogg's Pop-Tarts Snak Stix         15,686,995	         8,245,920
Kellogg's Pop-Tarts Pastry Swirls     13,733,399	         5,952,282
Thomas Toast R Cakes                   6,191,238	         3,676,394
Flavorkist Toastem                     5,513,212	         3,768,763
Kellogg's Pop-Tarts Limited Edition    5,354,647	         2,061,914
Cobblestone Mill                       1,363,860	           676,101

Top Breakfast Cereal/Snack Bars

Brand name	                   Dollar Sales	         Unit Sales

Kellogg's Nutri-Grain Bars           $112,995,544	         37,568,624
General Mills Milk 'n Cereal Bars      72,969,512	         24,903,248
Quaker Fruit & Oatmeal                 45,790,644	         15,056,827
Kellogg's Special K Bar                41,592,280	         16,511,071
Slim Fast Snack Options                40,400,032	         12,556,218
Quaker Fruit & Oatmeal Bites           30,394,774	          9,951,549
Kellogg's Nutri-Grain Yogurt Bars      26,241,644	          8,599,982
Kellogg's Nutri-Grain Minis            22,287,612	          7,223,768
Kellogg's Cereal & Milk Bars           22,199,434	          8,937,802

Top 10 Frozen Waffle Brands

Brand name	                   Dollar Sales	         Unit Sales

Kellogg’s Eggo                       $257,925,376	        109,776,856
Pillsbury Hungry Jack                  63,555,440	         32,862,080
Aunt Jemima                            40,508,572	         27,991,208
Kellogg's Nutri-Grain Eggo             24,798,514	          9,564,246
Kellogg's Eggo Waf-Fulls               15,751,381	          5,974,836
Kellogg's Special K Eggo               13,526,839	          4,209,630
Kellogg's Eggo Minis                    9,205,334	          2,964,179
Vans                                    6,805,205	          2,370,983
Kashi GoLean                            2,291,406	            908,463

Industry Players

The following list of key players represents the majority of the manufacturing in the breakfast food industry. Even the generic brand Malt-O-Meal is represented due to its popularity with consumers.

Major Breakfast Food Manufacturers		Location	         Revenue	     Market Cap	

1. General Mills                                USA		12.44B		19B
2. Kellogg Co.                                  USA		11.38B		22.22B
3. Quaker Oats Co.1                             USA		36.66B		112.4B
4. Kraft Foods, Inc.                            USA		35.41B		57.33B
5. Ralcorp                                      USA		1.85B		1.48B

1Owned by Pepsi Co.
2Private companies, data not available.

Recent Trends and Developments

The future of breakfast food is hinging more and more on commodity prices and the health of the global economy. It is unlikely the global recession will cause a marked drop in consumption, although high end brands with premium pricing will likely suffer. The greater impact could likely come with any return to inflation in commodity prices over the new few years.

At the same time there is significant opportunity in new markets such as China and India. If there is a considerable increase in consumer consumption in these markets, there may be a relatively high boost in the growth of breakfast foods worldwide.

Sources

• FDA
• Company websites