This decision was made by the Board of Directors of Nestlé India during their meeting last week.
Nestle Breakfast Cereals include Koko Krunch, Honey Stars and Corn Flakes, names which are well-known in South East Asia and Western countries.
“The consumer need for breakfast choices is only growing and companies need to bring more options to satisfy this need,” Suresh Narayanan, chairman and managing director of Nestlé India said.
The launch is also said to be in line with the company’s goal of providing high quality nutritious breakfast cereals.
Nestlé India first launched breakfast cereal in 2016.
Named as Ceregrow, the product includes 15 vitamins and minerals is targeted at children aged two to five years old.
Last year, it expanded its range of breakfast products by launching Maggi Nutrilicious noodles, which is mixed with oat grains and veggies.
With the addition of Nestlé Breakfast Cereals, Nestlé India is poised to compete for a larger market share with both international and local cereal producers, such as Kellogg’s, PepsiCo and Bagrry’s.
Amongst the competitors, Kellogg’s India dominates the country’s packaged breakfast cereal market with a value share of 56% last year. Euromonitor noted that the launch of new products yearly and a good distribution network had contributed to its popularity.
Market growing at double-digits
The breakfast cereal market in India has been growing at double-digits.
It has grown more than 17% CAGR from the past five years, according to a report by Research and Markets last year.
In India, breakfast cereals can be grouped into four categories: ready-to-eat, ready-to-cook, precooked/processed and ready-made/breakfast mixes.
Besides the different categories, rising popularity of breakfast cereal is also evident from the number of companies selling cereals.
Homegrown companies such as Bagrry’s India, Marico Ltd and MTR Foods are all into cereal business.
Bagrry’s India alone offers nearly 30 types of cereal products, ranging from cornflakes, oat bran, masala oats to muesli.
Global brands such as PepsiCo are also appealing to local tastes with masala Quaker oats, Lemony Veggie mix with real capsicum Quaker oats.
Product innovation that suits local taste is expected to drive market growth, according to Euromonitor.