Are you a cereal eater these days? Did you used to be? What can marketers do today to increase your cereal consumption? 🙂

As Stephanie Strom reports for the New York Times:

“Cereal consumption peaked in the mid-1990s, according to the NPD Group, a consumer research firm. Still, some 90 percent of American households report buying ready-to-eat cereal, which remains the largest category of breakfast food with some $10 billion in sales last year, according to Euromonitor, down from $13.9 billion in 2000. And the consumer research firm estimates sales will fall further this year to $9.7 billion.”

“The cereal business has been declining, as consumers reach for granola bars, yogurt, and drive-through fare in the morning. And the drop-off has accelerated lately, especially among those finicky millennials who tend to graze on healthy options — even if Cheerios and some other brands come in whole-grain varieties fortified with protein now.”


Click the New York Times’ chart to read more.

2 Replies to “Cereal Continues to Lose Its Popularity”

  1. I would think the answer to this question would be obvious. Demand for cereal is elastic in relation to two prices: the price for the cereal itself and the price of milk. With consumer income flat to declining, consumer budgets are largely inelastic.

    Some cereal companies have chosen to shrink the product rather than raise the price, but that simply means that the consumer has to buy more product. The typical consumer can see that the product doesn’t last as long; they’re really not stupid. But some find this “backdoor price increase” to be offensive — they seen the manufacturer as trying to hide what they are doing.

    Finally, the healthy eating movement is stressing the use of fewer processed foods.

    My reaction is surprise that sales are only down 10%.

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