The presence of 'granola' is growing in the domestic cereal market. Along with gaining attention as a health food during the COVID-19 pandemic, it has become popular as a substitute for breakfast, surpassing traditional cereal flakes in market share.
According to Euromonitor on the 26th, the domestic granola and muesli market has steadily grown, expanding by 101.9% from 51.2 billion KRW in 2018 to 103.4 billion KRW in 2021 over three years. While the traditional cereal market was dominated by flakes, granola and muesli overtook flakes in market share in 2021. Flakes showed only slight growth, from 83.3 billion KRW in 2018 to 85.7 billion KRW in 2021. The granola and muesli market is estimated to have grown more than 13% to 117.1 billion KRW last year. The flakes market is expected to have grown by 4.6% to 89.7 billion KRW compared to 85.7 billion KRW the previous year.
Muesli is a cereal made by mixing grains with dried fruits and nuts, while granola is a cereal made by mixing whole grains with honey and oil and then baking it. The growth trend has continued as interest in health has increased since COVID-19. More consumers consider nutritional content when purchasing cereal, increasing the popularity of granola, which conveniently satisfies both taste and nutrients. Changes in eating habits have also contributed. During the pandemic, home dining increased significantly, and along with the popularity of convenience foods, cereal products that are easy to eat have also gained attention. Granola’s versatility has increased as it is used sprinkled on Greek yogurt, salads, ice cream, and meat dishes.
In the domestic cereal market, Dongseo Foods and Nongshim Kellogg’s hold more than 90% of the total market share. The remaining approximately 10% market is fiercely contested by food companies, large supermarket private brand products, and imported products. Latecomers such as Orion, Lotte Confectionery, and E-Mart are also expanding their market share by launching new granola and oatmeal products.
Recently, various cereal products made with multiple ingredients have been released, considering health and calories. In addition to cereal, there are products in various forms such as snacks and bars. Nongshim Kellogg’s recently launched a new product, 'Dundunhan Bran Granola,' which enhances dietary fiber and lowers sugar content. It contains flakes made from bran (wheat bran), oat granola, and three types of black whole grains for the first time in Korea. Bran, which contains dietary fiber 20 times that of apples per 100g, is a healthy grain gaining attention recently.
Orion introduced a new product, ‘Oh! Granola Pop Honey Oat,’ through its convenient meal replacement brand ‘Market O Nature.’ Oh! Granola Pop Honey Oat is the fourth product in the Oh! Granola Pop line, featuring whole grain granola made from oats, domestic rice, whole wheat, and rye, enhanced with domestic beekeeping honey to improve taste and nutrition. The oats are made in three forms?‘puffed oats,’ ‘rolled oats,’ and ‘quick oats’?and include whole almonds to increase savory flavor and crunchy texture.
Dongseo Foods also launched a new granola product, ‘Post Whole Barley Granola.’ Post Whole Barley Granola is the first product in Korea to combine flakes made from barley, granola made from domestic whole barley, and mango-flavored cranberries. It features the crispy texture of barley flakes containing 41% barley and the savory, mild flavor of whole barley granola. Along with the launch of whole barley granola, Dongseo Foods renewed the Brand Identity (BI) of the Post brand and changed the package design of all granola cereal products.
An industry insider said, "With demographic changes such as a decrease in newborns and the rise of the healthy pleasure (helthypleasure) consumption trend that emphasizes health, products highlighting whole grains, protein, and nutrients are gaining popularity over sweet cereals like corn flakes or chocolate cereals. Although cereals were often seen as convenient meals to quickly fill hunger, they are now welcomed as healthy meals, and the market is expected to expand focusing on health-oriented products in the future."
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