MarketLine Blog

Fiber Cereal – How One Ingredient Can Make or Break an Entire Category?

Cereal manufacturers in Australia and New Zealand have struggled to gain traction in the fiber cereal category. Not only do they have to contend with Kellogg’s dominance of the category, but they also face competition from non-cereal products touting the same benefits. This article investigates the appeal of fiber cereal, and how industry players can withstand competition from both within and outside of their category.

The fiber cereal markets in Australia and New Zealand are characterized by numerous players, both new and established. Despite the number of products on offer in these markets, Kellogg’s has dominated the market on the back of its classic brands. Understanding how this market has evolved requires an appreciation of several factors.

Consumers in Australia and New Zealand are increasingly aware of the need to increase their fiber intake – Improved access to information and a general desire to learn more about nutrition has brought the benefits of dietary fiber to the fore. Consumers are increasing their efforts to incorporate more fiber into their diets; however, average intake in Australia and New Zealand still remains below recommended levels.

High fiber claims align well with the inherent health positioning of cereal – For decades, fiber and cereal have been a classic match, as consumers turn to high fiber breakfast cereals as a quick, easy, and intuitive way to supplement their fiber intake. Accordingly, fiber claims are the most common type of claim in new cereal products around the world.

Consumers are now looking to incorporate fiber by consuming a range of foods, not just cereal – Consumers realize that they can boost their fiber intake by consuming a range of different foods, and that they are not limited to cereal as their main source of fiber. Many food and drink products now offer the benefits of added fiber, and variety-seeking consumers are making the most of this improved product choice. However, this development has seriously impacted the ability for cereal product manufacturers to grow share in the fiber cereal market.

Find this interesting. For more, please read Fiber Cereal Case Study: How One Ingredient Can Make or Break an Entire Category. You may also like our industry reports . You may also like our ‘Food Industry Reports’.

Leave a comment

*Required fields. We will not publish your email address