Mintel’s research highlights a category that has been losing market share to products that are higher in protein and more convenient in recent years. It’s noteworthy that millennials, who are generally inclined towards healthier choices, enjoy eating cereal as a snack. Over 56% of them report having a bowl of cereal at home between meals, in contrast to only 32% of baby boomers. Interestingly, the younger the consumer, the less likely they are to enjoy a traditional bowl of Cheerios for breakfast. While they still appreciate the product, they prefer to consume it in a manner that aligns with their lifestyle.
Cereal manufacturers are aware of the shifting eating habits and have begun to adapt their products for the future, such as by introducing portable cereal bars. In 2016, General Mills indicated that they would “focus on formulas that are increasingly snackable.” Last June, they introduced Tiny Toast, marking their first new cereal brand in 15 years. More innovations are expected to follow.
Mintel also discovered a growing interest in healthy cereals, yet taste remains the most crucial factor for consumers. This might explain the resurgence of high-sugar, indulgent cereals. General Mills recently revealed plans to bring back the original recipe for Trix, complete with artificial colors, after consumers expressed dissatisfaction with the reformulated, cleaner label recipe. Additionally, this summer, Post reintroduced Oreo O’s cereal after a decade-long hiatus, collaborating exclusively with Walmart for a limited-time deal.
Interestingly, amidst these changes, the discontinuation of certain products, like Citracal D, has also influenced consumer preferences. The interplay between nostalgia for classic cereals and the demand for healthier options continues to shape the market landscape.