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Insight of the Day: Cereals adapt to evolving consumer needs

Findings:

  • Cereals are increasingly consumed as snacks, with nearly 30% of consumption occurring outside of breakfast.

  • Health and wellness concerns are driving innovation in the cereal category, with a focus on low sugar, high protein, and natural ingredients.

  • Sustainability concerns are also important to consumers, with interest in resealable packaging and sustainable materials.

  • Consumers still crave indulgence and fun, with dessert-inspired flavors and nostalgic offerings remaining popular.

  • 80% of cereal purchases are planned, with 53% of shoppers willing to wait for their preferred brand.

Key Takeaway:

The cereal category is evolving to cater to changing consumer needs and preferences, with a focus on health, wellness, sustainability, and indulgence.

Trend:

The growing popularity of cereal as a snack, driven by its versatility, convenience, and perceived health benefits, is a significant trend in the food industry.

Conclusions:

  • Cereal brands need to innovate to meet the diverse needs of consumers, offering healthier options, sustainable packaging, and indulgent flavors.

  • Balancing health and indulgence is key to appealing to a wide range of consumers and maintaining relevance in the market.

  • Understanding consumer shopping habits and preferences is crucial for effective product development and marketing strategies.

Implications for Brands:

  • Cereal brands should invest in developing new products that cater to the growing demand for healthy and sustainable snacks.

  • They should also focus on creating innovative flavors and formats that offer a sense of indulgence and fun.

  • Brands should consider using resealable packaging and sustainable materials to appeal to environmentally conscious consumers.

  • Effective marketing campaigns should highlight the versatility of cereal as a snack option and target different consumer segments with tailored messaging.

  • Collaborating with retailers to ensure product availability and visibility is essential for driving sales and brand loyalty.

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