Cereals beat slowing trend in FMCG foods

Aug 2, 2022

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The breakfast and wholesome snacks class has emerged as an outlier within the FMCG meals sector. An growing consciousness round wholesome consuming, snacking by means of the day and progress past metros into tier-2 cities are driving the breakfast and wholesome snacks section, even whereas the FMCG meals sector reported detrimental progress.
Quoting Nielsen Shopper information, Kellogg’s MD (India & South Asia markets) Prashant Peres mentioned quantity progress in breakfast and wholesome snacks — when put collectively and in contrast with different meals classes — has been constant over a span of two years from July-September 2020 to January-March this yr. The section confirmed 1.8% quantity progress within the first three months this yr as in comparison with the year-ago interval. Compared, the common FMCG meals progress was a detrimental 1.8% in the identical interval.
“We see good traction on the penetration alternative for the model. Kellogg’s achieved the very best ever penetration in March quarter, with a rise of roughly 1.5x vs the previous and exceeding 15% for SEC A/B households in MAT (shifting annual whole) March 2022 at an all-India stage,” mentioned Peres.
Bagrry’s Group director Aditya Bagri, mentioned there was a particular post-pandemic shift in the direction of more healthy consuming. Whereas initially it was extra intent, he added that now it’s changing into precise shopper demand. “There’s a major change within the shoppers’ alternative of what they wish to eat. The components driving this are vitamin and comfort. We get a whole lot of suggestions that our muesli is consumed not simply as a cereal with milk but additionally as a snack through the day, on-the-go and likewise a mid-night munch. So, the chance to eat the product has expanded,” mentioned Bagri.
Completely different cereals are consumed at totally different instances by individuals. Based on a product check research completed with 200 homemakers throughout the nation in partnership with IPSOS early this yr, Kellogg’s discovered that its cornflakes are eaten by greater than 80% shoppers throughout morning breakfast time and near 30% as night snacks. “The consumption development of Kellogg’s Chocos additionally reveals 74% having it within the morning as breakfast. What is nice to see is {that a} vital a part of the identical can also be on snacking events with greater than 60% of shoppers consuming this cereal in night,” mentioned Peres.
A Nestle India spokesperson mentioned the breakfast cereals class is gaining relevance past the metros and tier-1 cities. Nestle is seeing elevated traction in tier-2 cities. The spokesperson added that the adults section (granola and muesli) is seeing the quickest progress, whereas there may be additionally an growing development of delivering useful vitamin (protein, probiotics) and native grains (millets) by means of breakfast cereals, catering to the health-conscious millennials.
Apart from that, the expansion of the e-commerce channel has additionally acted as an enabler with extra selection obtainable to the shoppers.
Bagri mentioned, “The consumption of breakfast cereals can also be shifting from city to semi-urban and, to some extent, rural as nicely. That’s positively going to spur progress. However there’s a caveat. In contrast to classes like staples which have grown with shoppers changing from free to packaged merchandise, breakfast cereals is a 100% organised class and it doesn’t get the tailwind benefit that different classes have — of shoppers shifting from free to packaged.”



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