The packaged-cereal category has established what looks to be a winning growth formula—and a boon for consumers: Buy low and reap the benefits of innovating high.
On the price side, the U.S. Bureau of Labor Statistics’ most recent Consumer Price Index (measuring changes in the price level of market-basket consumer services and goods based on household purchases) shows that cereals/cereal product prices decreased 1.5% in 2017 after falling 1.2% in 2016. Breakfast cereals specifically decreased 1.1% for the second consecutive year after posting minor gains of 0.4% in 2015 and 0.5% in 2014.
On the innovation side, manufacturers have hit a fluid pace. Significantly, Post Holdings has struck a cross-branding venture with Mondelez International that speaks to the power of hybrid mash-ups that consumers seek out. General Mills is seeing sales of Cocoa Puffs, Cinnamon Toast Crunch and Lucky Charms on the upswing as it gives its loyalists more of what they want. Kellogg’s is always looking to operate ahead of the innovation curve and recently made a nifty addition to its Rice Krispies portfolio.
Click ahead to view nine packaged-cereal innovations.