PepsiCo India Adds Muesli To Its Range Of Breakfast Cereals
PepsiCo India is eyeing a bigger slice of the breakfast segment by expanding its portfolio beyond oats, as consumers increasingly turn to easy-to-make meals.
The food and beverage company added muesli under its Quaker Oats brand, making it the second non-Indian breakfast option in its portfolio.
With the new launch, PepsiCo hopes to benefit from a post-Covid in-home consumption surge of nutritious packaged foods.
“The need for convenience food is on the rise in the post-pandemic world,” said Sonam Bikram Vij, associate director and category lead–Quaker, PepsiCo India.
A joint report by the London-based market research company Euromonitor International and Quaker highlighted that 44% of urban millennials skipped breakfast and delayed meals due to increased household chores and a late start to the day.
However, “nutrition-conscious consumption” has turned out to be the choice across genders and generations, despite consumers skipping the first meal of the day. Increased consumption of fruits, vegetables, and whole grains, including oats, emerged as the key trend, it said.
India’s breakfast cereals market, valued at Rs 2,256 crore in 2017, grew at a 12% CAGR to Rs 3,411 crore in 2020, according to Euromonitor. It expects the segment to continue growing at this pace and likely reach Rs 4,746 crore in 2022.
Citing industry data, Vij said that the subcategory of muesli is pegged at about Rs 275 crore, accounting for 15% of the breakfast cereals segment. It has also emerged as one of the fastest-growing segments in the market with 16-18% CAGR.
PepsiCo’s Quaker will compete with the offerings of large food companies such as Kellogg India Pvt., MTR Foods Pvt., Bagrry India Pvt., Marico Ltd., Tata Consumer Products Ltd. and Nestle India Ltd., who have also widened their reach and portfolio to cash in on booming demand.
However, high prices of cereals can shrink their market and the category remains limited to urban areas. For instance, Quaker Oats Muesli–Fruit & Nut is priced at Rs 440 for 700g.
“Our market research have shown that consumers’ monthly shopping cycle is 15 days or a month. Hence, our pack sizes are also guided by that to begin with. We may also look at smaller single-serve packs in the future if there is a demand,” said Vij.
The product is also available across e-commerce platforms such as Amazon, BigBasket and Swiggy Instamart.
“We will progressively ramp up distribution across retail stores in key markets,” Vij said.
PepsiCo entered the breakfast category in 2006 with Quaker Oats. It had also expanded its breakfast options to sell idli, dosa, upma and khichdi—that are familiar to Indian palates—under the Quaker Nutri Foods label. But later discontinued these options. Currently, its portfolio comprises Quaker Plain Oats, Quaker Oats Multigrain and Quaker Oats with Flavour Mix.