The four largest players in cereal — Golden Valley-based General Mills; Kellogg; Lakeville-based Post Consumer Brands; and Quaker Oats — still control 80% of the $11 billion retail cereal market. But they all continued to sell less cereal over the past year, according to retail sales data from Circana.
The fastest-growing brands are often the most expensive, meanwhile, and tend toward “clean labels” with lower sugar, higher protein and no additives.
“You’re paying more for ingredients,” Brook said. “So I think it’s less sticker shock for people. It’s more like, ‘Hey, I know what I’m getting. I’m getting what I pay for,’ vs. paying for some advertising budget for Nickelodeon or for these other cereal companies.”
Cereal has long been slipping as younger generations turn on the century-old breakfast staple. After a brief resurgence during pandemic lockdowns, the industry’s big players are back to managed decline.
Then comes the health-and-wellness trend reshaping food and beverages, which has folks opening their wallets for less-processed options.
Brook said the cereal aisle is one of the last parts of the grocery store to really feel that shift.
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