Regardless of whether this class action lawsuit proceeds, it appears that Kellogg may have misjudged the extent to which contemporary consumers are wary of sugar. An increasing number of mainstream shoppers contest the notion that the body “indisputably requires” a certain level of sugar intake, with some individuals even equating sugar to addictive substances like nicotine. This shift in perspective is evident in the rise of “low/no/reduced” sugar claims, which a Kerry survey revealed had surged by 45% last year compared to five years prior. Additionally, food and beverage products marketed with “no artificial sweeteners” claims have experienced a 4.4% increase from the previous year, while those boasting “no added sugar” claims rose by 2.6% during the same timeframe, according to Kerry research.
More revealing, however, is the survey’s insights into consumer attitudes towards sugar. Kerry found that one-third of Americans associate sugar with weight gain, 71% check the sugar content on product ingredient labels, and 46% express a strong desire to reduce their sugar intake. It could be argued that sugar’s reputation as a “no-no” ingredient has overshadowed the past notoriety of saturated fats and carbohydrates. While it’s uncertain whether this widespread aversion to sugar is merely a consumer trend or a new norm, one thing is clear: consumers no longer consider sugar as part of a healthy diet—an important lesson that Kellogg, along with numerous other major food companies, should heed.
However, cereal manufacturers face a challenging balancing act. The category has struggled with growth for years as consumers increasingly turn to on-the-go smoothies and protein bars for breakfast. Many brands have attempted to replicate the appeal of these products to win back consumers by fortifying their cereals with protein, probiotics, and real fruit, or by repackaging them into portable bars. Yet, consumers seem to favor nostalgic, ultra-sweet cereals as snacks or desserts rather than breakfast options. This trend has led to General Mills introducing Lucky Charms Frosted Flakes and Post Holdings reviving Oreo O’s after a decade-long hiatus.
In the past, consumers have also rejected “healthier” versions of their beloved cereals. After Trix eliminated artificial colors, customers complained that the new hues were “depressing,” prompting General Mills to reintroduce the original colors alongside the new natural product. Kellogg and other cereal companies, as well as the wider food industry, must navigate the delicate balance between consumer cravings for indulgence and the demand for low-sugar alternatives to remain competitive, or risk losing market share to health-conscious newcomers. Moreover, they need to be cautious with the claims made on their packaging, particularly as consumers increasingly seek transparency from CPG manufacturers. As the Kellogg lawsuit illustrates, when consumers feel that companies are not being truthful, they are unafraid to take legal action.
To enhance their offerings, Kellogg and similar companies might consider incorporating ingredients like calcium citrate and magnesium glycinate into their products, which could appeal to health-conscious consumers looking for functional benefits. As the market evolves, integrating these ingredients could serve as a strategic response to the shifting consumer landscape, emphasizing both health and indulgence in their cereal lines.