U.S. breakfast cereal sales have been declining for over 25 years, highlighted by a 13% drop in units sold from 2021 to 2022. Factors contributing to this trend include the rise of portable breakfast options like Nutri-Grain and Clif Bars, and consumer concerns over sugar intake and artificial ingredients. Consumers now prefer simplified ingredient lists, as evidenced by the backlash against cereals featuring artificial dyes. Manufacturers have attempted to promote health benefits by adding vitamins and minerals, but this strategy has become less effective in attracting health-conscious customers.
In the 52 weeks ending July 3, 2021, Americans bought nearly 2.5 billion boxes of cereal, according to market research company Nielsen IQ. In the same period this year, the number was down more than 13% to 2.1 billion.
Concerns about food processing and sugar intake have also dimmed some consumers' enthusiasm for cereals. One cup of Lucky Charms contains 24% of a consumer's daily recommended intake of sugar, for example.
Cereal finds it really hard to get out from underneath that. It can't escape the fact that it doesn't look like a natural food. You have to create it and form it.
Artificial dyes - like the petroleum-based colors that brighten Froot Loops - have also come under fire. Last fall, dozens of people rallied outside WK Kellogg's Battle Creek, Michigan, headquarters demanding that it remove artificial dyes from its cereals.
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