Welcome to TLC Australia

Australian consumer choice and trends

Consumers Rethink Breakfast - How will brands respond?

Posted by suzanne.rolfe | 05 March

The breakfast cereal industry has been experiencing a sharp decline in demand, and companies are beginning to question the main reason behind consumers abandoning the popular morning meal. 

Kellogg’s had previously obtained a breakfast cereal market share of 40% in 2010, which dropped to 27% at the end of 2014* along with Nestlé experiencing a value share declined from 27% in 2013 to 25% in 2014*. 

These statistics are a reflection of the rapidly growing health trend that is spreading throughout Australia, and as a result, influencing consumers to opt out their favourite morning cereal for more organic and nutritional food options. 

Interestingly, in the past six years there has been an increase in volume sales for hot cereals, 27% growth for muesli, and 104% growth for energy bars*.

The shift in consumer demand away from traditional cereals means that Australians are listening to health experts.  

Studies have found that a hearty and healthy breakfast can help boost your metabolism, prevent poor food choices, and curb your cravings for high fat foods late at night.  

In addition, health experts have also found that a breakfast rich in protein will lead to less hunger and more weight loss**  

This means that Australian consumers are being told to rethink breakfast, as nutritionists suggest that consumers substitute their traditional cereal for the more balanced breakfast options listed below**

1.Hard-boiled egg with whole-grain toast topped with mashed avocado

2.Lox, vegetable cream cheese, cucumber slices and a bagel thin

3.Plain Greek yogurt with berries

4.Smoothie with soft tofu, strawberries, banana and almond butter

5.Scrambled egg, turkey bacon and salsa in a whole-grain tortilla

6.Cottage cheese, walnuts, sliced pear sprinkled with cinnamon

7.Poached egg, steamed asparagus and whole grain English muffin

8.Yogurt parfait with fruit and high-fiber cereal

9.Egg white omelette with spinach and mushrooms and whole-grain toast.

Therefore, Kellogg’s and Nestle have been confronted with the huge problem of consumers converting from cereal to low carbohydrate breakfast items.  

Derek Lau, Kellogg’s Spokesman, said that the company is considering the incorporation of super foods such as chia seeds and quinoa into their products to attract health conscious consumers*

However, will this small adjustment be enough to drive sales? 

The Director of the Australian Breakfast Cereal Manufacturers’ Forum, Leigh Reeve, said, “It’s not uncommon for Australians to lead the way in healthy eating and looking for healthier products... and when they do, the food manufacturers all respond to what they are looking for and try to produce the products that Australians are looking for.”* 

Kellogg and Nestle cannot ignore the shift in demand that is happening throughout Australia, but how will they respond? 


Written by Rachel Marino 

*SMH, 2015

**LA, 2015