Table of Contents
Executive Summary
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- The market
- Total breakfast spending is estimated to reach RMB2,549 billion in 2025
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- Figure 1: Total market value of breakfast foods market, China, 2020-25
- COVID-19 fuels in-home breakfast consumption
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- Figure 2: Forecast of in-home breakfast spending (taking COVID-19 into consideration), China, 2015-25
- Figure 3: Forecast of out-of-home breakfast spending (taking COVID-19 into consideration), China, 2015-25
- Impact of COVID-19 on breakfast foods
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- Figure 4: Summary of impact of COVID-19 on in-home and out-of-home breakfast foods
- Companies and brands
- Digitalization empowers retailers to provide an efficient breakfast solution
- Forge value-for-money image to expand user bases
- Packaged brands meet the quest for freshness and nutrition
- Cereal new launches with nutrients fortified and functional benefits increase in numbers in China
- Global trends: brands improve the health credentials of cereal products and create pleasure by offering novelty
- The consumer
- COVID sparks a resurgence in home cooking; breakfast foods stores/mobile stalls remain the mainstream out-of-home choice
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- Figure 5: Breakfast consumption frequency by place, April 2020
- Different vendors have different average spending
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- Figure 6: Average spending by breakfast location, April 2020
- Time pressure and poor appetite are top reasons for skipping breakfast
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- Figure 7: Reasons for skipping breakfast, April 2020
- Regional difference influences perceptions of a nutritious breakfast
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- Figure 8: Foods expected in a nutritious breakfast meal, April 2020
- Tapping into the ‘snackification’ trend of mixed oats
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- Figure 9: Consumption occasions for pure oatmeal and mixed oatmeal, April 2020
- Functional benefits are much valued
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- Figure 10: Interested innovations on mixed oatmeal, April 2020
- What we think
Issues and Insights
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- Opportunities for breakfast cereal with functional benefits in post COVID-19
- The facts
- The implications
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- Figure 11: % of new launches claimed with “vitamin/mineral fortified” and “high/added protein”, China, 2016-20 (till July)
- Figure 12: Product example, Hungary, 2019
- Provide time-pressed younger urbanites with more convenient and efficient breakfast solutions
- The facts
- The implications
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- Figure 13: Product example, Global
- Figure 14: Yixiaotu’s mobile breakfast vans, China, 2020
- Localization can work as a way to promote consumption
- The facts
- The implications
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- Figure 15: KFC’s bean curd, China, 2020
The Market – What You Need to Know
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- Consumers’ breakfast spending is projected to reach RMB1.9 trillion by 2020
- Continuous urbanisation, government policy and new retailing are the driving forces
- In-home consumption experiences a surge in growth rate
Market Size, Segmentation and Forecast
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- Overall, breakfast spending enjoys stable growth from 2015-20
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- Figure 16: Breakfast spending, China, 2015-20
- Figure 17: Financial confidence, China, March – September 2020
- Market growth momentum is expected to continue
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- Figure 18: Total market value of breakfast foods market, China, 2020-25
Market Factors
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- Continuous urbanisation prompts market’s expansion
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- Figure 19: Urbanisation and per capita disposable income, China, 2015-19
- City’s Breakfast Project goes into full swing
- New retailing opens up more possibilities for breakfast consumption
- Outbreak of COVID-19 brings lots of uncertainties to bricks-and-mortar businesses
Market Segmentation
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- In-home consumption: a noticeable surge in growth rate in 2020
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- Figure 20: Forecast for market value of breakfast foods - in home, China, 2020-25
- COVID-19 makes out-of-home consumption volatile
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- Figure 21: Forecast for market value of breakfast foods - out of home, China, 2020-25
Companies and Brands – What You Need to Know
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- Riding the trend of digitalization, retailers provide efficient breakfast services
- Forge value-for-money image
- Packaged brands highlight freshness and nutrition
- Global cereal brands seek sugar reduction solutions and embrace clean label trend
Competitive Strategies
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- Retailers and foodservice
- Convenience stores compete with extensive offerings and self-service devices
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- Figure 22: Convenience stores examples, China
- Retailers open Pick’n Go breakfast service
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- Figure 23: Pick’n Go service, China
- McDonalds focuses on establishing value-for-money image
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- Figure 24: McDonalds’ Breakfast Card and OH MY Card, China
- Premium hotels adapt themselves by offering affordable priced breakfast in the post-COVID world
- Packaged brands
- Ready meal brands embrace short-shelf-life
- Competition in breakfast cereal gets intense
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- Figure 25: Growing claims in breakfast cereal category, China, 2016-20 (till July)
Who’s Innovating?
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- Cross category brands step into the morning occasion
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- Figure 26: Product examples, China
- Brands ride on the “plant-based” trend
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- Figure 27: Product examples, China
- Breakfast cereals can be prepared in an easier way
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- Figure 28: % of new launches with the claim of ‘easy of use’, China, 2016-20 (till July)
- Figure 29: Product examples, Global
- Breakfast cereal evolves into more unique flavours
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- Figure 30: Product example, Global
- Figure 31: Product examples, Global
- Global cereal brands offer guilt-free & better-for-you choices
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- Figure 32: % of new launches with “better-for-you” claims in the breakfast cereal category, Global, 2016-20 (till July)
- Figure 33: Product examples with low/reduced sugar recipe. Global
- Figure 34: Produce examples feature “clean label”, Global
The Consumer – What You Need to Know
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- Breakfast stores/mobile faces competitions from convenience stores
- Time pressure is the primary reason for skipping breakfast
- Gut-friendly and fortified with dietary fiber are key interested features of cereal products.
Consumption Frequency
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- Breakfast stores/mobile stalls remain popular choices
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- Figure 35: Consumption Frequency, April 2020
- Breakfast at home enjoys resurgence under COVID-19
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- Figure 36: New habits - cook at home, March to July, 2020
- Besides, convenience stores and bakery houses are two channels own the most weekly visits
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- Figure 37: Consumption frequency - selected channels, April 2020
- Online delivery and coffee shops are struggling
Average Spending
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- Convenience stores compete with breakfast foods stores/mobile stalls with offering cost-effective choices
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- Figure 38: Average spending, April 2020
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- Figure 39: Financial status, March to September, 2020
- Bakery houses and Chinese food chain stores are battling for the mid-to-high price range
- Coffee shops and western food chain stores occupy the high-end breakfast market
Reasons for Skipping Breakfast
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- Young consumers compromise on breakfast because of time pressure
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- Figure 40: Reasons for skipping breakfast, April 2020
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- Figure 41: Reasons for skipping breakfast - selected reasons, by age groups, April 2020
- Poor morning appetite keeps females aged 18-24 from taking breakfast
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- Figure 42: Skipping breakfast for the reason of no appetite, by age & gender, April 2020
- Figure 43: Product example
- Lower tier cities ask for a wider variety of breakfast types
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- Figure 44: Skipping breakfast for the reason of limited types of breakfast provided by channels frequently visited, by city tier, April 2020
Perception of a Nutritious Breakfast
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- Protein sets the foundation of a nutritious breakfast meal
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- Figure 45: Foods expected in a nutritious breakfast meal, April 2020
- Western-style packaged breakfast foods are encouraged to formulate with rich protein
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- Figure 46: Foods should be included in a nutritious breakfast meal - selected Western-style foods, by monthly personal income level, April 2020
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- Figure 47: Bread, cakes and pastries with high protein content
- Perceptions towards nutritious breakfast food types vary by region
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- Figure 48: Foods should be included in a nutritious breakfast meal, by region, April 2020
Consumption Occasions for Different Oatmeal
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- Oatmeal products own a significant penetration rate overall
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- Figure 49: Consumption occasions for pure oatmeal and mixed oatmeal, April 2020
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- Figure 50: Product example, USA, 2020
- Opportunity to probe into snacking occasions
Interested Features
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- Supportive to gut health is the prominent hook for families with kids
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- Figure 51: Interested innovations on mixed oatmeal, April 2020
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- Figure 52: % of new launches with the claim of digestive function in breakfast cereal category, China, 2016-2020 (till July)
- Female consumers are much into “plus” claims
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- Figure 53: Interested features-selected features, by gender, April 2020
- Attract consumers from mid-west region with diversified flavours
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- Figure 54: Interested in variety in flavour choice, by region, April 2020
- Demands for vitamins/minerals fortification portable packaging are universal
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- Figure 55: % of new launches with the claim of vitamin/minerals fortification and on-the-go in breakfast cereal category, China, 2016-2020 (till July)
Meet the Mintropolitans
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- MinTs are frequent visitors to coffee shops and Western-style food chain stores for breakfast foods
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- Figure 56: Consumption frequency - selected channels, by consumer classification, April 2020
- Potential to develop mixed oatmeal with functional benefits to target the MinTs
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- Figure 57: Consumption occasions of mixed oatmeal, by consumer classification, April 2020
Appendix – Market Segmentation
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- Figure 58: Total market value of breakfast foods market, China, 2015-20
- Figure 59: Total market value of at-home breakfast foods market, China, 2015-25
- Figure 60: Total market value of out-of-home breakfast foods market, China, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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