Breakfast Foods: Incl Impact of COVID-19 - US - October 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: Market context
Economic and other assumptions
EXECUTIVE SUMMARY 
Top takeaways 
Breakfast importance wanes
Figure 1: Meal statements – Any agree, 2014 and 2020
Impact of COVID-19 on breakfast foods
Figure 2: Short-, medium- and long-term impact of COVID-19 on breakfast foods, September 2020
Opportunities and Challenges  
Re-emergence 
Figure 3: Opinions of breakfast routines, by age, July 2020
Fill the foodservice void 
Consumers need a nudge to move beyond breakfast just for breakfast
Figure 4: Breakfast consumption occasion by time of day, June 2020
Recovery 
Figure 5: Experience and interest in food and drink nutritional claims, august 2020
TARGET AUDIENCE – KEY TAKEAWAYS 
Pandemic led to significant increase in at-home breakfast consumption
Breaking away from breakfast
Health of a chance
BREAKFAST AUDIENCE BY THE NUMBERS 
Breakfast mostly consumed at home
Figure 6: Normal breakfast consumption, June 2020
Parents least likely to skip breakfast
Figure 7: Breakfast consumption, by parental status, by gender, June 2020
Breakfast habits consistent over household income
Figure 8: Source of breakfast, by household income, June 2020
Macroeconomic factors
Figure 9: Expected US unemployment, 2019-25
Impact of COVID-19 on Breakfast Foods
Figure 10: Short-, medium- and long-term impact of COVID-19 on breakfast foods, September 2020
Lockdown
Re-emergence
Recovery
COVID-19: US context
Learnings from the last recession
MARKET FACTORS 
Restaurants face double whammy from pandemic and recession
Figure 11: Opinions on changes in spending behaviors – any rank, May 2020
Breakfast’s importance wanes
Figure 12: Meal statements – Any agree, 2014 and 2020
Figure 13: Snacking in place of meals, by age, February 2020
Definition of “breakfast” expands
Figure 14: Breakfast and brunch menu item interest, by generation, July 2019
Fewer kids means fewer breakfasts
Figure 15: US households, by presence of related children, 2008-18
MARKET OPPORTUNITIES 
Put the break in breakfast 
Figure 16: Breakfast routines, June 2020
“Breakfast” foods can leverage health in a variety of ways
Figure 17: Important claims when choosing food and drinks, August 2020
Return of in-restaurant breakfast
Figure 18: Comfort level toward social activities, US, July 15-September 8, 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Restaurants as inspiration
Free-from claims take focus
Cereal launches point to functional potential
COMPETITIVE STRATEGIES
Culinary innovation readies packaged breakfast brands to fill the experience void
Figure 19: Recent frozen breakfast launches
Free-from claims maintain prominence among breakfast launches
Figure 20: Free-from claims on food and drink launches featuring the word “breakfast,” 2015-20
Finding function
Figure 21: Food and drink launches featuring the word “breakfast,” by functional claims, 2015-20
Cereal leads breakfast launches, focuses on ingredient-based claims
Figure 22: Most frequent nutritional claims on breakfast cereal product launches, by year
THE CONSUMER – KEY TAKEAWAYS  
Restaurant breakfasts decline 
Cost saving could lead to more from-scratch breakfasts at home
Cereal and yogurt prove breakfast can be at any time of day
Supermarkets prove the go-to resource for breakfast foods
Giving a boost to breakfast
Disrupt breakfast habits
TYPICAL BREAKFAST CONSUMPTION LOCATION
Vast majority of breakfasts already consumed at home
Figure 23: Normal breakfast consumption, June 2020
Young adults more likely to turn to restaurants for breakfast/brunch
Figure 24: Normal breakfast consumption, by age, June 2020
Parents turning to restaurants for breakfasts heavily on weekends
Figure 25: Normal breakfast consumption, by parental status, June 2020
Restaurant breakfasts should augment flavor messaging with a healthy component
Figure 26: Breakfast attitudes, by location of typical breakfast consumption, June 2020
Home breakfasts predominate, especially among the old
Figure 27: Source of breakfast eaten at home, by age, June 2020
COVID-19 has increased breakfast consumption most among younger consumers
Figure 28: Increased consumption of breakfast types, by age, June 2020
BREAKFAST CONSUMPTION OCCASION
Cereal proves most popular; yogurt remains steady throughout the day
Figure 29: Breakfast consumption – Net any use, June 2020
Figure 30: Breakfast consumption occasion by time of day, June 2020
Expand the role of “breakfast” 
Figure 31: Breakfast consumption occasion, June 2020
Cereal could leverage nostalgia to expand daypart usage
Figure 32: Cereal consumption occasion by time of day, June 2020
BREAKFAST PURCHASE LOCATION
Consumers are diversifying their breakfast shopping
Figure 33: Breakfast purchase location, June 2020
Younger people shifting breakfast purchase locations
Figure 34: Breakfast purchase location, by age, June 2020
Younger people turning to 3+ locations for breakfast foods
Figure 35: Repertoire of locations shopped for breakfast foods, by age, June 2020
Consumers who shop around for breakfast compelled by health, freshness
Figure 36: Important attributes when selecting breakfast items, by repertoire of purchase locations, June 2020
IMPORTANT ATTRIBUTES WHEN SELECTING BREAKFAST ITEMS
Health, ease and flavor lead breakfast drivers
Figure 37: Important attributes when selecting breakfast, June 2020
Searching for healthy breakfasts at natural supermarkets
Figure 38: Important attributes when selecting breakfast items, by purchase location, June 2020
Boost nutritional attributes of breakfast options
Figure 39: TURF Analysis – Important attributes when selecting breakfast items, June 2020
“Quick” and “filling” appeal to moms, “fresh” to dads
Figure 40: Important attributes when selecting breakfast, by parental status, by gender, June 2020
BREAKFAST ATTITUDES
Break the breakfast routine 
Figure 41: Breakfast attitudes, June 2020
Younger consumers open to greater variety at breakfast
Figure 42: Breakfast attitudes, by age, June 2020
Hispanic Millennials value a healthy breakfast
Figure 43: Breakfast attitudes, by Hispanic origin, by generation, June 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX - TURF ANALYSIS – METHODOLOGY
Figure 44: Table - TURF Analysis – Important attributes when selecting breakfast food items, June 2020