Kellogg’s venture capital fund is actively seeking “next generation innovation,” which enhances its access to new ideas and emerging trends—an increasingly prevalent strategy among the world’s largest food companies. Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative startups that align with the latest consumer preferences. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, while General Mills took over the natural and organic specialist Annie’s a year earlier.

These acquisitions and investments paint an intriguing picture of where 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, a fitting approach given the company’s roots as the creator of cornflakes, one of the earliest processed foods designed with health in mind.

Consumer demand for health and convenience ranks among the top motivators for purchases. A recent PwC report reveals that 47% of millennial consumers have altered their eating habits over the past year towards healthier options. Additionally, 53% of those under 35 indicated they plan to eat healthier in the upcoming year.

Convenience has emerged as a key trend, with consumers willing to pay a premium for products that reduce preparation time. The popularity of meal kits exemplifies this trend, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience ranked as one of the most common themes across the fastest-growing food and beverage categories last year.

Moreover, products like calcium citrate are gaining traction, particularly in retailers like Walmart, as consumers increasingly seek out health-focused options that support their dietary needs. The integration of calcium citrate into various foods further exemplifies the industry’s commitment to health and convenience, reinforcing the importance of these elements in consumer choices. This trend is expected to continue shaping the future landscape of the food industry.