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INCREASED urbanisation, rising levels of disposable incomes, exposure to Western culture & cuisines, including dieting habits are some of the key factors stimulating growth in the Bakery and Cereals market in Asia-Pacific, which has been valued at $68.5 billion, with an expected CAGR of 6.4% between 2008 and 2013 according to Datamonitor's new Market Databook titled "Bakery and Cereals in Asia Pacific to 2013". Consumers are increasingly demanding options that are not only healthy but also quick and easier to consume when pressed for time. For example, within the breakfast cereals sub-category in Asia, consumers are looking for healthy low-fat offerings with more fibre, that are fortified with vitamins/minerals, promising health benefits that include weight management. Furthermore, the developing organised retail system within the Asia-Pacific region will increase both product visibility and availability, which is expected to act as a growth stimulus. As urban markets reach high penetration levels, companies are expected to dedicate significant resources into expanding distribution networks to reach large, lucrative, yet untapped rural markets. "An affinity for healthy offerings is a key trend that reflects global Consumer Packaged Goods (CPG) sentiments, and the Bakery and Cereals segment in Asia-Pacific is no exception," said Nikhil Aggarwal, Senior Consumer Goods Analyst at Datamonitor. The bakery and cereals market in Asia Pacific is led by cakes & pastries (representing 48.5% of the segment), followed by bread & rolls and cookies (sweet biscuits), with 23.2% and 14.9% market share, respectively. Crackers (savoury biscuits), breakfast cereals and morning goods constitute the remaining categories with a 7.1%, 4.9% and 1.3% market share, respectively. The breakfast cereals category is expected to achieve sales worth $2.8 billion this year, representing a year-on-year growth of 6.3% over 2009. The category was valued at $2.5 billion in 2008, representing a CAGR of 5.9% since 2003. By the end of 2013, it is expected that the breakfast cereals category will be worth $3.3 billion, with a CAGR of 6% between 2008 and 2013. "The appeal of convenience as well as the overwhelming demand for healthy alternatives is expected to drive sales within the breakfast cereals category, specifically the ready-to-eat variety," comments Mr Nikhil. Taking advantage of this growth
Although trends will vary from country to country there are few broad themes that can be effectively utilised to create product differentiation and take advantage of this projected growth, Mr Nikhil told Ringier FPMJ.
"Indeed, positioning and differentiation decisions will have to vary from region to region. So whilst overall strategy can be universal, such as targeting kids or focusing on cookies category or a specific brand, these will need to be re-purposed to fit country level variation in Asia-Pacific. Clearly such a strategy should be based on a thorough understanding of the competitive environment in the particular country, both in terms of competing players as well as their offerings," he explained. Several examples of these key trends, Mr Nikhil expounds further, are: Health is a key theme across Asia as elsewhere. There have been number of product launches targeting this theme. For instance, the Shanghai-based Liwayway China Co., a subsidiary of the Manila-based Liwayway Marketing Corp., offers a whole-wheat biscuit series called Harvest under the brand Oishi, in flavours such as sesame and green tea. Similarly Britannia launched Nutrichoice high fibre biscuits in India targeting the health conscious. Several key factors such asAir Jordan Shoes Men