Long-Term Decline Continues Despite Pandemic Bump
Cold cereal sales in the United States have been on a steady decline for over 25 years, and the trend is again in focus as Italian confectioner Ferrero Group prepares to acquire WK Kellogg, the maker of Corn Flakes, Froot Loops, and Rice Krispies. According to Nielsen IQ, Americans purchased 2.1 billion boxes of cereal in the 52 weeks ending July 3, 2025 — a 13% drop from the same period in 2021.
The pandemic offered a brief revival, with more people working from home and having time for traditional breakfasts. But the shift proved temporary, and cereal’s decline resumed. Experts cite a mix of changing consumer habits, health concerns, and growing competition from more convenient breakfast options such as bars, shakes, and yogurt.
Changing Preferences and Nutritional Backlash
Cereal’s fall from breakfast staple to pantry afterthought stems in part from shifting nutritional standards. Many consumers now seek whole, minimally processed foods with clean ingredient lists. Cereals that contain artificial dyes and added sugars, such as Lucky Charms or Froot Loops, face increasing scrutiny. For example, a single cup of Lucky Charms delivers 24% of the recommended daily sugar intake.
In response to public pressure and health advocacy, Kellogg and General Mills have pledged to remove artificial dyes from their products. However, the challenge remains: cereal, as it is manufactured and processed, doesn’t align with modern perceptions of natural foods.
Younger Consumers Redefining Breakfast
Younger generations are fundamentally reshaping breakfast habits. According to research from YouGov, Generation Z is less likely to eat a formal breakfast but still purchases ready-to-eat cereal — often consuming it as a snack or at nontraditional mealtimes. Gen Z is also more likely to include vegetables and other unconventional items in their morning meals, a sign of changing dietary norms.
Tom Rees of Euromonitor suggests the cereal market will need to fragment to meet these evolving demands. Rather than creating one-size-fits-all products, brands may have to cater to distinct consumer groups — from spicy-sweet flavor seekers to Keto-focused health enthusiasts. Some niche players, like Magic Spoon and Poop Like a Champion, are already capitalizing on these trends with high-protein or high-fiber offerings.
Corporate Shakeups and Future Strategies
The cereal industry’s struggles prompted the Kellogg Company to split in 2023. Kellanova took control of its snack brands and international cereals, while WK Kellogg retained the U.S., Canada, and Caribbean cereal business. Now, Ferrero’s planned acquisition of WK Kellogg represents another major shift. While the deal does not signal the end of cereal aisles in supermarkets, it does reflect the urgency to reinvent legacy brands.
Food analysts see potential in product innovation and repositioning. Levi Strauss’s Red Tab strategy finds a parallel in Kellogg’s Mashups, which combine two popular cereals into a single product — a tactic that may resonate with younger consumers. Mintel’s Julia Mills suggests cereal could thrive as a sophisticated topping or functional health food, rather than a traditional meal.
Despite these headwinds, major brands are adapting. General Mills, which once considered acquiring Magic Spoon, has launched its own high-protein Cheerios line, now outselling its niche rival. CEO Jeffrey Harmening emphasized the importance of “giving consumers more of what they want” as the guiding principle for long-term success.
Cereal’s decline is rooted in decades of changing tastes, health awareness, and competition. However, with new ownership, innovative products, and a clearer understanding of diverse consumer needs, legacy cereal brands like WK Kellogg may yet find new life. Ferrero’s acquisition could mark the beginning of a more segmented, adaptive future for the breakfast staple.