Could cereal become the next trendy breakfast?
In recent years the health category has drawn increasing attention. Against the backdrop of slowing growth across the overall fast-moving consumer goods sector, the cereal category, with its multiple benefits and low calorie content, has still managed to maintain rapid growth, and among its various subcategories the standout performer is "breakfast cereal."
The spring of breakfast cereal
Unlike traditional oatmeal, which is cooked or soaked in hot water or hot milk, breakfast cereal is a cold product that can be eaten directly without any heating. Breakfast cereal is a mainstream breakfast choice in Europe and the United States, but as Chinese consumers' lifestyles become increasingly Westernized, major manufacturers have successively launched breakfast cereal lines in recent years. Online shopping and daigou services have also introduced successful foreign products into China one after another, and more Chinese people have begun to accept and try this kind of "foreign goods," with breakfast cereal slowly setting off a revolution in breakfast culture. According to data from the Kantar Worldpanel household sample, over the past three years breakfast cereal sales have soared all the way, ushering in its spring in China.
The superhero of the breakfast cereal legion
One product deserves much of the credit for the explosive growth of breakfast cereal. Calbee cereal from Japan swept across China's entire cereal market in 2015. In just one short year, Calbee doubled the overall sales of China's breakfast cereal category through online shopping and daigou channels alone.
Calbee's success shows us not only the potential of e-commerce but also consumers' more diverse consumption demands. Although Calbee's price is more than three times that of traditional hot oatmeal, consumers seem very willing to pay for what they regard as high quality. Data from the Kantar Worldpanel shows that Calbee's penetration rate reached 1.7% in just one year, and among consumers who bought Calbee, most were new entrants to the breakfast cereal category.
Win the young, win the world
When breakfast cereal first entered the Chinese market, it targeted families with children, using various cartoon packages as its entry point and launching series aimed at children. As the breakfast cereal market continued to expand, manufacturers also began to see opportunities among young singles and couples.
The best-selling Calbee broke through the children's market, using pairing with yogurt as a selling point and giving consumers an entirely new way to eat cereal. In addition, riding the trend of booming Japanese tourism in China, Calbee was at one point packaged on major online platforms as an essential daigou item from Japan, and it quickly whipped up a whirlwind of overseas daigou among young people keen to chase trends, successfully opening up the breakfast market for itself among young consumers.
Despite its rapid growth, breakfast cereal's market scale in China is still very small. At present, the penetration rate is only 5.9%, and it is mainly concentrated in first-tier cities. Therefore, this market still has much potential waiting to be developed. Compared with traditional oatmeal, breakfast cereal has a richer product line, with more room for variation in raw materials, flavors, shapes and ways of eating, and seizing on the characteristics of young people for product innovation is undoubtedly the magic weapon that will help it become the next trendy breakfast.