Food & Beverage Perspectives
Healthfulness, Convenience Driving Growth in Breakfast Sector

Healthfulness, Convenience Driving Growth in Breakfast Sector

Americans’ consumption of breakfasts and morning snacks, in- and away-from-home, is forecast to grow 5 percent through 2019, outpacing an expected U.S. population growth rate of 4 percent, according to new data from the NPD Group. Moreover, annual morning snack occasions per person, in- and away-from-home, have increased by 17 percent over the past six years.

Americans’ consumption of breakfasts and morning snacks, in- and away-from-home, is forecast to grow 5 percent through 2019, outpacing an expected U.S. population growth rate of 4 percent, according to new data from the NPD Group. Moreover, annual morning snack occasions per person, in- and away-from-home, have increased by 17 percent over the past six years.

The need for speed, affordability and portability are the reasons why morning meal traffic, which includes breakfast and morning snack, at traditional quick service restaurants (QSRs) has been growing. In fact, in the year ending February 2016, morning meal visits to QSRs increased by 5 percent on top of a 3 percent increase during the same period prior year. The growth in breakfast and morning snack visits shows that QSRs are pushing all of consumers’ hot buttons. McDonald’s successfully tapped into breakfast’s popularity with the launch of its all-day breakfast offering. With convenience the key for restaurant breakfast occasions; foods showing growth are breakfast sandwiches and portable breakfast foods, like yogurt and cereal bars.

But there is good news for food and beverage makers, while there is strong growth of away from home breakfasts, 70 percent of all breakfast meals are consumed in the home. The average annual number of breakfast occasions per person in 2015 was 361, up 11 occasions per person from 2010. The motivations behind breakfast are generally convenience, satiation and healthfulness but these factors can vary by generational group and life stage. In-home, consumers, particularly young adults, are turning to more involved breakfast foods such as eggs and “traditional" breakfast foods. Better-for you snack foods, like fruit, yogurt, granola bars, are among the top choices for morning snacks.

“It’s clear by the strong growth in breakfast that it’s an opportunity for food manufacturers, operators, and retailers," said David Portalatin, NPD’s vice president, food industry analyst. “The best way to tap into the breakfast and morning snack opportunities is to first understand what the consumers’ motivations, needs, and wants are based on demographics, life stage, and situation and let this knowledge guide your decision-making."

Countless studies have found eating a nutritious breakfast offers many benefits, including improved concentration, better weight control, increased strength and endurance, better heart health, and even lowering the risk of type 2 diabetes. Download the “Slide Show: Building Better-For-You-Breakfast-Cereals" to find out how product formulators are delivering healthier breakfast options.

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