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PepsiCo’s Quaker Oats cuts sugar by 30% to make breakfast cereal healthier

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  • The Breakfast The Cereal (BFC) category in India has a compound annual growth rate of 6-8%.
  • India ranks among the top five countries in the world in terms of BFC market value.
  • High fiber oats and muesli registered growth of 12% and 16% respectively across India this year.

Breakfast is considered the most important meal of the day and Indians now give it credit as spending capacity has increased and awareness of nutritional needs has increased.

Millennials around the world are also reluctant to consume higher amounts of sugar and additives associated with processed foods. With greater awareness around healthy food choices, PepsiCo‘s Quaker Oats says it has cut sugar by 30% in ready-to-eat breakfast foods to make them healthier.

“Eating a healthy breakfast that is easy to make and has many benefits is a major emerging trend. The ready-to-eat cereals market has witnessed an upward growth trend in India with the demand for muesli increasing continuously. Like a nutrition brand, we want to offer consumers more options, and we see a clear role for muesli in India,” said Sonam Bikram Vijoassociate director and category head, Quaker, PepsiCo India.

India’s breakfast cereal (BFC) category has a compound annual growth rate (CAGR) of 6-8%, industry insights by breakfast and cereal company Quaker Oats revealed. Globally, the BFC market is worth $38 billion a year.

According to Statista, India ranks among the top five countries in the world in terms of BFC market
where the. Muesli alone has an estimated market size of ₹275 crore and makes up about 15% of the BFC category in India, with a CAGR of 16-18%. Oats have grown 24% in India since 2016, making them the fastest growing category in the BFC
sector.

A
study conducted by a Euromonitor International and Quaker revealed that 44% of urban millennials skipped breakfast and postponed their meals due to increased household chores and a late start to the day.

To meet the busy schedules of Indian consumers while supporting their nutritional intake, Quaker Oats has launched two breakfast cereals: Quaker Oats Muesli – Fruit & Nut and Quaker Oats Muesli – Berries & Seeds, available in 700g for ₹440 and ₹ respectively. 460 India.

“Consumers often even go shopping every two weeks or at least once a month. They are now looking for bigger packs that will help them last the whole month,” she added.

Other breakfast and cereal companies are also trying to reduce processed content in their offerings.

“With the pandemic, consumers are also changing their lifestyles as they make healthier choices. For today’s nutrition-conscious consumer, it’s all about finding a balance between one’s active lifestyle and consuming nutritious foods,” said Vij.

Globally, the breakfast and cereal market is estimated to be worth more than $65.1 billion per year
2032with East Asian countries like China and India posting more robust growth in the category.

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