Innovation Is Key for Food Companies as Yogurt and a Variety of Snack Bars Have Steadily Eroded the Base of Traditional Breakfast Cereals, Says Lux Research
BOSTON, MA--(Marketwired - Apr 19, 2016) - Ready-to-eat (RTE) breakfast cereals are seeing a continued and accelerating decline in sales, indicating a secular downtrend rather than a mere blip, as consumer eating habits continue to evolve, according to Lux Research.
The rate of growth of cereals began to slide in 2007, and the market has been shrinking overall since a 2011 peak of $8.5 billion, as a younger population embraces other alternatives. In 2014, when sales of breakfast cereals dropped for the fourth year in a row, yogurt sales exceeded $7 billion and snack bars topped $5.5 billion, revealing a generational shift.
"The need for greater convenience, changing social mores, and an increasingly mobile workforce are changing the definition of breakfast," said Joice Pranata, Lux Research Associate and lead author of the report titled, "Cereal Loses Crunch as Breakfast Alternatives Take Over."
"With the drive toward 'natural' and 'healthy' choices, there's also greater opportunity for experimentation with new breakfast alternatives," she added.
Lux Research analysts studied emerging breakfast alternatives as cereals continue their steady decline. Among their findings:
The report, titled "Cereal Loses Crunch as Breakfast Alternatives Take Over," is part of the Lux Research Food and Nutrition Intelligence service.
About Lux Research
Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.
Lux Research, Inc.