Key facts
- Cereal sales have declined for at least 25 years, with a brief pandemic-era increase.
- Consumers are concerned about food processing, sugar intake, and artificial dyes in cereals.
- Gen Z consumers eat vegetables for breakfast and are less likely to eat breakfast but still buy cereal.
- Companies are relaunching brands with added protein or lower sugar to appeal to health-conscious consumers.
- Premium organic and natural cereals are performing well while the overall category struggles.
U.S. breakfast cereal sales have been in a steady decline for over 25 years, with a more than 13% drop in unit sales in the 52 weeks ending July 3, 2021, compared to the same period in 2024. This trend is highlighted by the planned purchase of WK Kellogg, a major U.S. cereal producer, by Italian confectioner Ferrero Group. Factors contributing to the decline include the rise of portable breakfast options, concerns over sugar content and artificial dyes, and evolving consumer preferences for simpler ingredients and diverse breakfast choices, such as yogurt and shakes. Generation Z, in particular, is noted for consuming cereal differently, potentially as a snack or for other meals, and for incorporating more vegetables into their breakfast routines.