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Food and Beverage 2016-02-26

What's so hot about breakfast biz in India

India's breakfast cereal market has been growing with a CAGR of13 per cent from 1168 mn to 1450 mn over last five years.

What's so hot about breakfast biz in India

The necessity of eating breakfast has been emphasized time and again for a person to be able to take on a busy day. From global restaurant chains, ready to eat and cook players everyone is focusing on healthy breakfast options.

Even, the fast evolving food-tech business and on-the-go players are venturing into breakfast space as people who have a busy lifestyle or are on the move and do not have the time to make and eat breakfast are eagerly looking for such options.

Serving fresh

India's breakfast cereal market has been growing with a CAGR of13 per cent from 1168 mn to 1450 mn over last five years. In addition to Ready to Eat (RTE), the breakfast category is driven by hot cereals – Oats (33% YOY). Today, oats comprise approximately 30 per cent of the category sales in modern trade. 

Delhi based Bagrry’s is betting big on the Oats market, and has invested in matching health and innovation. For Bagrry’s Indianisation in the category is not just limited to creating different flavour variants. The company has done research and innovation to create a whole new range that is not just palatable, but also allows consumption in a familiar format.

Not only this, the company which holds 17 per cent of the market in breakfast cereal makers in a market estimated at over Rs 800 crore, is planning to open QSR restaurants with healthy food choices. Named as Bagrry's On the Go, these stores will serve food and beverages such as oats-based sandwiches, burgers and bagels, muesli and wheat bran-based desserts and multigrain meals for lunch and dinner.

"The entire focus will be on healthy foods and every food or beverage we serve will have our own ingredients," shared Aditya Bagri, MD, Bagrry’s.

Likewise, MTR Foods Pvt. Ltd., the pioneer of packaged foods in India has launched their latest addition to the extensive breakfast mixes range– Breakfast in a Cup with the Upma and Poha variants. The Breakfast in a Cup range has been conceptualized and launched to provide wholesome and convenient hot Indian breakfasts for rushed mornings.

“We have done extensive research on the breakfast meal occasion and we realized that though breakfast is important, many people, especially the youth end up sacrificing the meal due to paucity of time,” said Vikran Sabherwal, Vice President - Marketing, MTR Foods.

The company is also working on launching the perfect product that ensures quick wholesome breakfast for busy mornings without compromising on the great Indian familiar taste that everyone loves. Ready in just 3 minutes by adding hot water, young busy consumers can now enjoy their favourite Indian breakfast in a convenient format.”

Grabbing and going

Growing health and wellness awareness was one of the key trends which drove sales of breakfast cereals and foods in 2015. Consumers are looking for healthier alternatives to traditional Indian breakfasts and moving towards breakfast cereals, which are considered to be healthier and more nutritious. The major bulk of consumption of breakfast cereals happens in Tier-1 and Tier-2 cities because of the long working hours and the increased share of working women, which is pushing them to look for faster arrangements for breakfast.

Globally QSR chain McDonald’s has already made headlines for spreading and investing into its breakfast segment. From serving the best easy to grab meals to focusing on healthy breakfast menu, McDonald’s is focusing on All-Day breakfast options in many countries today.

Similarly, the trend is catching up in India with local restaurants taking this route. Cafe Mangii, Yellow Bar All Day, Social Offline, Panaya and food-tech companies like FRSH, Swiggy, Faasos, Eat First are selling high on the breakfast options.

Hence, we can see some major trend hitting the industry in 2016 as people are no more looking for a biscuit or yoghurt in the morning. They want more qualified and healthy menu with an equal portion of protein, vitamin, calcium and other nutrients.

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