Monday, June 02, 2014

Cereal turnaround?

Things have been looking bleak for the cereal industry. For example, last month Kellogg revealed sales decline, and many other industry signs are likewise not hopeful.

Yet, despite the negative trends, some are much more optimistic. Packaged Facts marketing research recently issued a report predicting a 10% growth in the U.S. breakfast cereal market between 2014 and 2018. Here a couple of noteworthy trends they noted:

First, there is growth in the sales of hot cereals, a trend previously noted here.

Second, much of the growth that will occur is likely to come from Hispanics, who generally consume much more cereal than non-Hispanics. We've already seen a few cereals targeted to Latinos. Expect more.

Packaged Facts also see positive signs in innovation and marketing from major companies. This, combined with some of the other innovations we are seeing from upstarts, might mean some brighter days ahead for the cereal industry.

We can only hope.


No comments: