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The report suggests that during the 1990’s breakfast cereal market experienced a downturn in volume as consumers continued to skip breakfast in increasing numbers. Since 2000, however, volumes have started to recover, coupled with stronger value growth, in part due to premium, luxury products building value back into the category, while core products have also been able to sell at prices exceeding effects of inflation.
Figure 1 shows the UK retail value and volume sales of all breakfast cereal for the period 1998-2003.
Figure 1: UK retail volume and value sales of breakfast cereal, 1998-2003
000 tonnes Index ?m Index ?m at 1998 prices Index ?m Index
1998 380 100 997 100 997 100 1,485 100
1999 378 99 998 100 995 100 1,517 102
2000 378 99 1,005 101 1,005 101 1,648 111
2001 399 105 1,068 107 1,034 104 1,719 116
2002 404 106 1,090 109 1,040 104 1,711 115
2003 (est) 409 108 1,117 112 1,050 105 1,742 117
Looking at the table we can see that from 2001-03, value has been driven back into the category probably through the launch and success of premium-priced products, at an estimated value of ?1...
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