The Breakfast Cereal Revolution in India: Types, Consumption Trends, D2C Rise, and Marketing Tactics

India, a land known for its diverse culinary heritage, is witnessing a transformative shift in breakfast preferences. The clinking of spoons against bowls filled with crispy cornflakes, wholesome oats, or colourful puffs has become increasingly familiar in households across the nation. The evolution of breakfast cereals in India is about more than just eating; it embodies convenience, health consciousness, and a fusion of global flavours.

Breakfast cereals are processed and ready-to-eat food products primarily consumed as a morning meal. Typically made from grains like wheat, oats, corn, or rice, they undergo processing methods such as extrusion, flaking, or puffing to create a variety of shapes and textures. These cereals are often fortified with vitamins, minerals, and other nutrients and can be consumed with milk, yoghurt, or fruit juice, offering a convenient and quick breakfast option.

Breakfast cereals come in an assortment of varieties, each appealing to different tastes and nutritional requirements:

1. Flakes: Crisp and light, cornflakes, wheat flakes, and rice flakes have been early favourites, offering a delightful crunch to kick-start the day.
2. Oats: Celebrated for their fibre-rich composition and heart-healthy benefits, oats have gained prominence as a nourishing morning meal option.
3. Muesli: A harmonious blend of oats, nuts, seeds, and dried fruits, muesli presents a flavourful mix packed with essential nutrients.
4. Granola: Combining oats, nuts, honey, and sometimes dried fruits, granola delivers a sweet and crunchy texture, often favoured for its taste and nutritional value.

Past Trends: 

The historical journey of breakfast cereal in India reflects initial challenges as cultural preferences favoured traditional, hot breakfasts such as idlis and dosas. Back in the 1970s, the introduction of cold cereals by a major international company, Kellogg’s, faced formidable resistance [4]. The concept of enjoying cereal with cold milk clashed with ingrained habits of savouring freshly prepared, warm meals. This clash of cultural expectations significantly hindered the acceptance of ready-to-eat cereals among the Indian populace.

Present Scenario:

Fast forward to recent years, and the landscape for breakfast cereals in India has transformed notably. According to Euromonitor International, the breakfast cereal market has surged impressively from Rs 2,246 crore in 2017 to Rs 3,495 crore in 2021 [1]. Notably, the category of hot cereals, especially oats, has emerged as a frontrunner. This shift in preference towards hot cereals is attributable to the increasing awareness among consumers about the manifold benefits of whole grains. Mintel’s research corroborates this shift, highlighting that while traditional breakfast choices like poha and chapatis continue to reign supreme, there’s a discernible uptick in the consumption of breakfast cereals, albeit at a per capita consumption rate lower than 0.1kg per year [2].

Future Projections:

Looking ahead, the trajectory for breakfast cereals in India appears promising. Analysts project a robust Compound Annual Growth Rate (CAGR) of 8.2% over the upcoming five years [3]. This growth trajectory is underpinned by several factors, including evolving lifestyles, an uptick in disposable incomes, and a burgeoning demand for convenient yet wholesome options. Despite the substantial market for wet idli-dosa batter, estimated at Rs 1,500-4000 crore, the breakfast cereal market stands poised to carve out a larger niche within this landscape [1]. While the current consumption rates remain relatively modest, a study by Mintel in 2020 showed  that nearly four in five Indian consumers adhere to a daily breakfast regimen signifying immense potential for cereal manufacturers in India [6]. The upcoming phase is likely to witness an even more pronounced surge in cereal consumption, particularly in urban hubs where the pace of life demands swift yet nutritious breakfast solutions.

The evolution of Direct-to-Consumer (D2C) breakfast cereal brands in India was a direct response to historical consumer preferences deeply rooted in traditional breakfast habits. In the 1970s, multinational companies encountered a considerable obstacle in introducing the concept of cold cereal with milk to Indian consumers [4]. The failure was emblematic of a broader cultural sentiment wherein consumers strongly identified with their customary breakfast rituals of consuming freshly prepared, hot meals.

Fast forward to the present, the rise of D2C breakfast cereal brands signifies a shift in approach to align with these entrenched preferences. These brands recognise the significance of respecting and adapting to prevailing food cultures and habits. Leveraging the power of digital platforms and direct engagement with consumers, these brands have redefined the breakfast cereal narrative in India.

Rather than attempting to revolutionise established breakfast traditions, D2C brands have focused on innovation within familiar boundaries. They offer products that cater to the Indian palate, incorporating locally resonant flavours, and, importantly, emphasising the preparation of warm cereals. By highlighting the convenience of preparing hot cereals while retaining the nutritional benefits, these brands have successfully navigated the “freshness” expectation hurdle that hindered previous attempts by larger companies.

Moreover, D2C brands prioritise a direct relationship with consumers, allowing for personalised experiences and feedback integration. This approach fosters a sense of community and trust, enabling these brands to resonate more deeply with consumers seeking both familiarity and innovation in their breakfast choices.

In essence, the rise of D2C breakfast cereal brands in India is not just a testament to entrepreneurial agility but also a strategic adaptation that honours cultural food habits. By marrying convenience, nutrition, and a respect for traditional breakfast preferences, these brands have carved out a niche in the evolving breakfast cereal market, capturing the essence of Indian culinary heritage while embracing modernity.

Breakfast cereals often prominently display nutrition and health claims on their packaging, emphasising attributes like being ‘high in fibre,’ ‘packed with vitamins,’ or ‘a wholesome start to your day’. However, a study in New Zealand revealed that cereals accounted for a significant proportion of such claims, with around one-third associated with ‘less-healthy’ options [5]. This marketing strategy could potentially mislead consumers regarding the actual nutritional quality of the product. Here’s a list of advertising codewords you need to keep an eye out for:

1. High in Fiber: While a cereal might boast high fibre content, it could also be high in added sugars or lack other essential nutrients. Consumers might assume healthfulness solely based on fibre content without considering overall nutritional balance.
2. Fortified: The term implies added nutrients, but it doesn’t necessarily account for the quantity, quality or absorption of these nutrients. Some fortified cereals might compensate for processing losses but could still be high in sugar or low in other vital nutrients.
3. Whole Grain: Products labelled as “whole grain” might contain a blend of whole and refined grains, potentially diluting the health benefits associated with whole grains. The overall grain composition and processing methods matter in determining nutritional value.
4. Low-Fat or Fat-Free: While these cereals might have reduced fat content, they could compensate by adding more sugars or artificial additives to maintain taste, potentially negating health benefits.
5. Gluten-Free: Although beneficial for those with gluten intolerance, gluten-free cereals might lack fibre or other nutrients found in gluten-containing grains unless properly fortified.
6. Natural or Organic: Terms like “natural” or “organic” might create a perception of healthfulness, but they don’t necessarily equate to superior nutritional value. Some cereals labelled as such could still contain high levels of sugar or unhealthy additives.
7. Low in Sugar: Cereals advertised as low in sugar might compensate with artificial sweeteners or higher levels of carbohydrates and saturated fats, undermining their health claims.
8. Energy-Boosting: While certain ingredients may provide energy, some cereals might also contain high amounts of sugars or processed carbohydrates, leading to energy spikes and crashes.
9. Heart-Healthy: This term implies cardiovascular benefits, but cereals labelled as such could still contain added sugars or high levels of sodium, detracting from their heart-healthiness.
10. Weight Management: Cereals marketed for weight management might still contain high levels of processed ingredients or lack sufficient protein and fibre to keep consumers satiated.

In essence, the evolution of breakfast cereals in India represents a fusion of tradition and modernity, showcasing a shift from traditional breakfasts to an expanding market of convenient options. However, amidst the impressive growth and marketing claims, consumers must navigate carefully. Misleading health claims and terms like “high in fibre” or “low-fat” can obscure the true nutritional value. In these cases, reading the food label is the best trump card to have. Understanding what goes in your food and how products list their ingredients can help you avoid any pitfalls when choosing your preferred breakfast cereal. As India embraces change, education becomes vital—empowering consumers to look beyond marketing tactics and make informed choices aligned with their nutritional needs. The journey of breakfast cereals in India is not just about changing preferences; it’s a story of balancing health, tradition, and convenience. Ultimately, informed decisions, backed by label scrutiny, pave the way for a healthier breakfast table.

Unbox Health tests breakfast cereals for label accuracy and safety parameters via our partner network of NABL-accredited and FSSAI-certified labs. 

References: 

1. Singh, D. (2022, October 26). What’s fuelling the popularity of breakfast cereals in India? Moneycontrol. https://www.moneycontrol.com/news/business/companies/whats-fuelling-the-popularity-of-breakfast-cereals-in-india-9393441.html
2. Mogelonsky, M. (2018, November 21). What’s in store for Breakfast Cereal in India? Mintel. https://www.mintel.com/food-and-drink-market-news/whats-in-store-for-breakfast-cereal-in-india/#:~:text=Mintel%20estimates%20indicate%20that%20while,for%20cereal%20manufacturers%20in%20India.
3. Breakfast cereal market in India – Companies & Share. Breakfast Cereal Market in India – Companies & Share. (n.d.). https://www.mordorintelligence.com/industry-reports/india-breakfast-cereals-market
4. How Kellogg’s failed, and then won, in India. TOPPAN DIGITAL LANGUAGE. (2022, June 17). https://toppandigital.com/translation-blog/how-kelloggs-failed-and-then-won-in-india/
5. Al-Ani, H. H., Devi, A., Eyles, H., Swinburn, B., & Vandevijvere, S. (2016). Nutrition and health claims on healthy and less-healthy packaged food products in New Zealand. The British journal of nutrition, 116(6), 1087–1094. https://doi.org/10.1017/S0007114516002981
6. Kumar, N. (2020, January 27). Breakfast Trends in India. Mintel. https://www.mintel.com/food-and-drink-market-news/breakfast-trends-in-india/