Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its ability to access new ideas and trends—an increasingly popular strategy among the largest food companies globally. Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative startups that align with contemporary consumer trends. For instance, Hershey acquired Krave, known for its nitrite-free jerky, in 2015, while General Mills took over Annie’s, a natural and organic specialist, a year earlier. These acquisitions and investments provide an intriguing glimpse into how the industry’s major players envision the future of food.
For Kellogg, many of its investments thus far have focused on the intersection of health and convenience, reflecting the company’s roots as the creator of cornflakes, one of the world’s first processed foods designed with health in mind. Consumers are increasingly motivated by their desire for health and convenience in their purchasing decisions. A recent report from PwC indicates that 47% of millennial consumers altered their eating habits over the past year to adopt a healthier diet. Furthermore, 53% of individuals under 35 expressed intentions to eat healthier in the coming year.
Convenience has emerged as a crucial trend, with consumers willing to spend more on products that reduce preparation time. The surge in meal kit popularity exemplifies this trend, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was one of the most prevalent themes among the fastest-growing food and beverage categories last year.
While trends such as these dominate the market, some consumers are beginning to question the health implications of certain ingredients, such as calcium citrate. Many wonder, is calcium citrate bad for you? As health-conscious consumers increasingly seek clarity on nutritional content, understanding the impact of such ingredients will play a significant role in shaping future food innovations.