The past few years have been tough on the breakfast cereal business, as long-running staples saw sales declines.
In 2016, 40 percent of Millennials surveyed said they didn’t eat cereal because it was inconvenient and required clean-up.
The younger generations said they had a preference for more “grab and go” foods with fresh ingredients.
But the pandemic appears to have boosted America’s appetite for familiar, shelf-stable foods and cereal is having a resurgence.
Kid-targeted cereals have been flying off the shelves, with Post describing demand for its Pebbles brand as “on fire.”
At General Mills, sales have boosted for old favorites like Cinnamon Toast Crunch and Reese's Puffs.
Even adult-targeted cereals are in high demand, and cereal makers believe it’s because older adults are looking for nostalgia and comfort and Millennials may be trying these brands for the first time.
But is this cereal growth sustainable post-pandemic? Post’s chief growth officer Tom Dixon called it “the million-dollar question.”