The ready-to-eat (RTE) cereal category has seen little growth in the past year, but that hasn’t stopped major food manufacturers from ramping up their innovations.
With a lackluster 2% drop in unit sales and flat dollar sales of $11.02 billion over the 52 weeks ending Oct. 6, cereal makers are focusing on creative products and partnerships to reignite consumer interest.
Let’s take a closer look at the trends fueling this innovation and what companies like WK Kellogg, General Mills, and Post Holdings are doing to adapt.
The Cereal Category Struggles but Adapts
Cereal companies aren’t backing down despite flat dollar sales and aren’t unit sales. Instead, they’re stepping up their efforts to capture the attention of consumers who have become more selective about their breakfast choices.
According to market research firm Circana, sales in the ready-to-eat cereal category were steady at $11.02 billion for the 52 weeks ending Oct. 6, 2024.
However, the industry experienced a 2% decline in unit sales during this period. Companies are focusing on product innovation, hoping to reverse these trends.
Creative Collaborations A Key Strategy
One of the standout strategies from major cereal manufacturers is forging unexpected partnerships. WK Kellogg, the company behind iconic cereals like Corn Flakes and Rice Krispies, is experimenting with collaborations to bring new excitement to the category.
In 2024, WK Kellogg partnered with the popular cookie franchise Crumbl to launch Crumbl Chocolatey Chip Cereal. This move taps into the growing trend of blending snacks and cereals, creating a hybrid product that appeals to cookie lovers.
Another notable collaboration was with Netflix, creating Kellogg’s Wednesday Kellogg’s Wednesday Cookies & Creme Cereal based on the hit series Wednesday. These creative partnerships are helping Kellogg bring fresh excitement to its cereal lineup.
Health-Conscious and Fun: New Products from WK Kellogg
WK Kellogg is also introducing products that cater to health-conscious consumers without sacrificing flavor. In January 2024, they launched Eat Your Mouth Off, a vegan cereal packed with 22 grams of plant-based protein, 2 grams of net carbs per serving, and no added sugar. The cereal’s fun name and high-protein content appeal to health-conscious adults and younger consumers looking for something new and exciting.
” Real food doesn’t have to be just a nutritious option. It can be fun, too,” said Sadie Garcia, Senior Marketing Director at WK Kellogg. This reflects the growing consumer desire for more innovative, health-focused products thatdon’t compromisee on taste.
General Mills Big Bets and Iconic Brands
General Mills, another giant in the cereal industry, faced similar challenges with declining unit sales but is finding success with its bold new product launches.
The company on “big bet” “products in 2024, such as the Kelce Mix breakfast cereal, combines three of the most popular cereals—Cinnamon Toast Crunch, Lucky Charms, and Reese’s Puffs—into one box. This collaboration with NFL stars Travis and Jason Kelce, based on their favorite cereals, is a prime example of how celebrity partnerships can drive interest in traditional products.
In addition to the Kelce Mix, General Mills rolled out several other big launches, including Ghost Protein Cereals and Wheaties Protein Cereals. These new products target the growing protein snack trend, which is expected to be a significant driver of innovation in the coming years.
Seasonal Offerings and Product Diversification
Post Holdings, known for cereals like Honey Bunches of Oats and Pebbles, has managed to maintain steady dollar sales in the RTE cereal market, with a slight increase of 0.1% for the 52 weeks ending Oct. 6.
The company’s strategy has focused on diversifying its offerings, especially through seasonal cereals. Post’s introduction of limited-edition cereals like Winterfest Fruity Pebbles and Fruity Pebbles Waffles has helped keep consumers engaged with something new.
This focus on seasonal and limited-edition flavors is proving successful. Post launches new products every season to cater to changing tastes. These products give consumers something special and encourage them to revisit their favorite brands throughout the year.
Will Innovation Revive the Cereal Category?
Despite the challenges, cereal manufacturers are optimistic about the future. Companies like WK Kellogg, General Mills, and Post Holdings are working to revitalize the cereal category by embracing bold collaborations, healthy innovations, and seasonal products.
As these companies continue experimenting with new flavors, ingredients, and partnerships, the cereal aisle could once again become a space for exciting new products.
Conclusion
The cereal category may face sales challenges, but innovation continues to thrive as companies seek creative ways to attract consumers.
From celebrity partnerships to healthy, protein-packed options, the cereal market trends show that companies are committed to delivering new and exciting products. Whether through collaborations, seasonal flavors, or bold new health-focused offerings, the future of cereal is anything but boring.
FAQs
What trends are driving innovation in the cereal industry?
Innovation in the cereal industry is largely driven by partnerships with celebrities and brands, new health-conscious options (like plant-based or protein-packed cereals), and seasonal limited-edition products. Companies are also experimenting with combining snacks with breakfast cereals to attract a wider audience.
How are WK Kellogg and General Mills addressing declining cereal sales?
Both companies are introducing new and unique products. WK Kellogg is launching collaborations with brands like Crumbl and Netflix. General Mills offers big “market bets” like the Kelce Mix cereal and new protein-packed options to appeal to changing consumer preferences.
Why are seasonal cereals becoming more popular?
Seasonal cereals provide consumers with new flavors and excitement throughout the year. Brands like Post Holdings have seen success by releasing limited-edition products, tapping into the desire for novelty and variety.
What are protein-packed cereals, and why are they trending?
Protein-packed cereals are designed to meet the growing demand for high-protein snacks. They cater to health-conscious consumers and athletes who want to start their day with a boost of protein, and they’re becoming a significant trend in the cereal market.
How important are celebrity collaborations in cereal marketing?
Celebrity collaborations, like General Mills’ Kelce Mix cereal, are key to driving interest and boosting sales. These partnerships help brands tap into fans loyalty, creating excitement and increasing visibility in a competitive market.