Jackson Reed
Breakfast cereals are a staple in many households across the US, with Americans consuming $8.5 billion worth of ready-to-eat cereals annually. The largest manufacturers of breakfast cereals in the US include General Mills, Kellogg, Post, and Quaker, with their cereals accounting for $7.3 billion in sales. These companies produce a variety of popular cereals, including Cheerios, Frosted Flakes, Raisin Bran, Lucky Charms, and Cinnamon Toast Crunch. The US has a significant market share of the global breakfast cereal industry, which was valued at US$37 billion in 2016 and is projected to grow to US$50 billion by 2023.
| Characteristics | Values |
|---|---|
| Per capita consumption of cold breakfast cereals in 1939 | 4.4 pounds |
| Per capita consumption of cold breakfast cereals in 1997 | 14.3 pounds |
| Countries that eat more cereal than the U.S. | England, Ireland, Australia |
| Cereal companies | Kellanova, WK Kellogg Co, General Mills, Malt-O-Meal, Nestlé, Quaker Oats, Post Consumer Brands |
| Cereal brands | Cheerios, Special K, Honey Bunches of Oats, Kix, Grape Nuts, Wheaties, Ranger Joe, Frosted Flakes, Coco Pops, Cookie Crisp, Lucky Charms, Cap'n Crunch |
| Annual sales | $10 billion |
| Number of new cereals offered each year | 20 |
| Year of the first cold cereal | 1863 |
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What You'll Learn
History of breakfast cereal in the US
Breakfast cereal in the US has a long and fascinating history, evolving from a health-focused product to a sugary treat. The first cold breakfast cereal was introduced in 1863 by James Caleb Jackson, a religious conservative vegetarian who ran a health spa in western New York. Jackson created a cereal from graham flour dough that was dried and broken into hard shapes, requiring it to be soaked in milk overnight. He called it "granula".
John Harvey Kellogg, a surgeon and fellow religious vegetarian who ran a health spa in Michigan, later created his own version, which he called "granola". The Kellogg brothers, John Harvey and Will Keith, also invented flaked cereal, which they named "Corn Flakes". Will Keith Kellogg added sugar to the Corn Flakes and began mass marketing them, including the first in-box prize. This marked a shift in the product's target audience, as Kellogg's Corn Flakes were now being marketed towards children.
Other companies soon followed suit, creating their own versions of breakfast cereals and targeting children with their advertising. In 1939, Ranger Joe became the first pre-sweetened breakfast cereal of sugar-coated puffed wheat or rice introduced in the US. In 1953, Kellogg's Sugar Smacks were created, containing 56% sugar by weight. The use of mascots, such as Tony the Tiger and the Trix Rabbit, also emerged as a popular marketing strategy aimed at children.
Over time, the health-conscious origins of breakfast cereal were overshadowed by the increasing focus on taste and marketing to children. This perception of cereal as a sugary treat, rather than a nutritious breakfast, has contributed to a decline in its popularity in recent years, as consumers seek more portable and healthy breakfast options.
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Marketing and advertising strategies
Breakfast cereals have a long history of marketing and advertising in the US. The following are some strategies that can be used for marketing and advertising breakfast cereals:
Targeted Advertising
Breakfast cereals are often advertised to specific target audiences, such as children, teenagers, or adults. This allows companies to tailor their messages and promotional activities to the interests and needs of these specific groups. For example, companies may focus on health and nutritional benefits when advertising to adults, while emphasizing taste and fun when advertising to children.
Brand Packaging and Characters
Breakfast cereals often utilize brand packaging and characters to create a unique and memorable brand identity. The use of brand characters, such as Toucan Sam, the Trix rabbit, and Cap'n Crunch, helps to create a fun and engaging brand image that appeals to younger consumers. The packaging is also an important marketing tool, with companies using bold colours, modern patterns, and catchy slogans to attract attention and differentiate their product on the shelf.
Health and Nutrition Claims
Many breakfast cereals emphasize their health and nutritional benefits in their marketing and advertising. This may include highlighting the presence of natural ingredients, high fibre content, low-fat intake, and the inclusion of vitamins and minerals. Some companies also create "diet" cereals for calorie-conscious consumers or market their products as a complete meal replacement.
Convenience and Ease
Breakfast cereals are often marketed as a convenient and easy breakfast option, especially for busy individuals and families. By positioning the product as a quick and simple solution for breakfast, companies can appeal to those who value time-saving options.
Flavour and Variety
Breakfast cereals offer a wide range of flavours and varieties to cater to different taste preferences. From chocolate and fruity flavours to honey and peanut butter, companies can attract a diverse range of consumers by offering something for everyone.
Brand Loyalty and Habit Formation
Breakfast cereals aim to establish brand loyalty by becoming a part of consumers' morning routines. By creating a consistent and reliable product, companies can encourage repeat purchases and long-term brand loyalty.
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Health concerns and nutritional value
Breakfast cereals are made from processed grains and are often fortified with vitamins and minerals. They are usually eaten with milk, yoghurt, fruit, or nuts. While cereals can be a good source of iron, folate, and other B vitamins, they are often loaded with sugar and refined grains. High sugar consumption is harmful and may increase the risk of several diseases. Breakfast cereals are, in fact, the seventh biggest contributor to added sugar intake among adults in the USA.
It is important to be cautious of misleading health claims printed on cereal boxes. Reading the nutrition facts label and ingredients list can help identify how much added sugar is in a serving of the cereal. Cereals with the least amount of added sugar per serving are ideal. Cereals that pack at least 3 grams of fiber per serving are considered optimal. Eating enough fiber can have several health benefits.
Whole, single-ingredient foods such as oat porridge or eggs are considered healthier alternatives to breakfast cereals. Eggs, in particular, can increase the overall nutrient density of your diet. However, a 2022 study found no differences in fullness levels after breakfast between those who ate an egg breakfast or a cereal breakfast with the same amount of protein. This suggests that breakfast cereals can have the same satiety-promoting (and in-turn weight loss) benefits of eggs if they contain as much protein as the egg breakfast.
Some studies have shown that children and adolescents who eat breakfast cereal regularly are less likely to have vitamin and mineral intakes below the recommended daily requirements. They also tend to have better diets overall, lower daily cholesterol intakes, and better nutritional status.
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Target audience and consumer trends
The breakfast cereal market in the US caters to two primary segments: children and adults. The former group often prefers colourful, sweetened, and character-themed cereals, while the latter tends to seek out health benefits like high protein and fibre content, and low calorie counts, typically avoiding artificial flavours and excessive sweetness. Cereal companies are launching innovative products such as protein-rich and gluten-free cereals to cater to evolving consumer preferences.
The US breakfast cereal market is heavily influenced by the country's fast-paced lifestyle and busy work culture, with convenience and health-consciousness being key factors driving the market. This has led to the popularity of on-the-go breakfast options and a surge in demand for organic and gluten-free cereal products. The rise of e-commerce and online grocery shopping is also expected to drive market growth, allowing for easier access and wider distribution of these products.
Consumer spending, inflation rates, and employment rates are other macroeconomic factors that influence the market. With a strong national economy and stable fiscal policy, the US provides a favourable environment for companies to invest in the breakfast cereals market. Health trends significantly influence cereal marketing, with an increasing emphasis on products that offer higher nutritional value and fewer artificial ingredients.
Brands are now offering gluten-free, organic, and non-GMO options to cater to health-conscious consumers. With the rise of plant-based diets and ethical consumerism, there has also been a growing interest in vegan and sustainable breakfast cereal options. These shifts in consumer preferences are driven by the desire for convenient and nutritious breakfast options, as more individuals lead busy and on-the-go lifestyles.
Generation Z has lower penetration in cereal consumption but eats more sweet cereals. Brands will likely move away from sugar and toward protein, with an increase in plant-based claims, especially in hot cereal. Efforts will be made to reach Gen Z with messages that merge environmental concerns with health messaging.
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Leading cereal brands and manufacturers
Breakfast cereals are a category of food made from processed cereal grains eaten as part of breakfast or as a snack, primarily in Western societies. Many cereals are trademarked brands of large companies, and the market is dominated by a few leading brands and manufacturers.
One of the most well-known cereal manufacturers in the US is Kellogg's, or WK Kellogg Co. The company was founded in 1906 and has since been pushing the health and wellness benefits of its cereals. Kellogg's Corn Flakes, which were introduced in 1894, remain one of the best-selling breakfast cereals in the US. The company's other popular cereals include Frosted Flakes (also known as Frosties outside the US), Froot Loops, Apple Jacks, and Special K.
General Mills, Inc. is another leading cereal manufacturer in the US market. The company entered the market in 1924 with Wheaties and has since expanded its product portfolio to include popular cereals such as Cheerios, Honey Nut Cheerios, Cinnamon Toast Crunch, and Lucky Charms. General Mills also owns the brand Cookie Crisp, a cereal shaped like chocolate chip cookies that attract many children.
Post Consumer Brands, a subsidiary of Post Holdings, Inc., is also a significant player in the US cereal market. They are known for their Honey Bunches of Oats cereal, which was created by a Post employee and has become a long-time top-seller. Post Consumer Brands also offers a range of branded and privately labelled cereal products, including a limited-edition Halloween Fruity Pebbles cereal.
Other notable cereal manufacturers in the US include Quaker Oats, which created a cereal made from oats in 1877, and Malt-O-Meal, Nestlé, and Ralston. These companies produce well-known cereals such as Coco Pops (known as Cocoa Krispies in some regions), Grape Nuts, and Donkey Kong Jr. Cereal.
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Frequently asked questions
Yes, many breakfast cereals are produced in the US. The largest market for breakfast cereals is in North America, with Europe being the second largest. Some of the most popular US cereals include Cheerios, Frosted Flakes, and Raisin Bran.
Some of the biggest breakfast cereal companies in the US include General Mills, Kellogg, Post, and Quaker. These four companies collectively account for billions of dollars in cereal sales each year.
Popular breakfast cereals produced by US companies include Lucky Charms, Cinnamon Toast Crunch, and Raisin Bran Crunch by General Mills, as well as Special K and Frosted Flakes by Kellogg.
