A new look at cereal snacking: The top brands and producers for the first half of 2018

03-Sep-2018 - Last updated on 07-Sep-2018 at 08:04 GMT

Cereals are no longer just relegated for breakfast and the bowl – market research indicates it is becoming a popular snack, especially among millennials. This is giving the declining sector a much needed boost. We rate the top 10 bestsellers in the US for the first half of 2018.

According to Mintel, total US sales of hot and cold cereals have declined 9% since 2012, totalling around $10.5bn in 2017.

The US market for ready-to-eat (RTE) cold cereals is much bigger than the hot cereal sector.

For the 52 weeks ending July 15, 2018, total US multi-outlet sales of RTE cereals was $8.51bn versus $1.33bn for hot cereals, according to IRI data.

However, the RTE category posted a 1.52% decline in sales from the same period a year ago, while the hot cereals sector saw a 4.03% rise.

John Owen, senior food & drink analyst at Mintel, noted that, while the RTE cereal category continues to decline, it remains a huge category with near-universal penetration.

“The key to reinvigorating the cereal category may lie less in trying to fix its inherent shortcomings than leveraging its strongest asset: great taste,” he said, noting that 30% of US consumers choose cereal that tastes good regardless of how nutritious it is.

That said, Mintel research found that, while lightly sweetened cereal is the most popular choice (60%), interest in healthy cereal is on the rise. Forty-nine percent of cereal consumers said they are eating more ancient grain-based cereal, 40% are consuming more muesli, 36% granola and 33% high-fiber cereals.

Snacking on cereal

Earlier this year, Mintel published research that revealed that 74% of US cereal consumers eat cereal as a snack, pushing the occasion beyond breakfast and even beyond the bowl.

Younger generations are leading the revolution when it comes to snacking on cereal, with 56% of millennials (aged 23-40) saying they have eaten cereal as a snack at home, compared to just 32% of Baby Boomers (aged 53-71).

“While breakfast is the most common occasion for eating cereal and nearly universal across age groups, snacking on cereal may offer greater potential for reinvigorating category growth, especially among younger adults,” said Owen.

“Many consumers view cereal as a guilt-free treat, suggesting that a bowl of cereal could be positioned as just as satisfying as, but more sensible than, other more dessert-like options. Positioning cereal as an anytime, tasty snack could be a way to tap into the belief that cereal is a permissible indulgence.”

Top 10 RTE cereal producers for first half of 2018

(Source: IRI, a Chicago-based market research firm (@iriworldwide)

Ranking	Producer	Sales	% Change YAgo	Market share
1	General Mills	$2.6bn	+0.85%	30.59%
2	Kellogg Co	$2.4bn	-3.51%	29.29%
3	Post Holdings	$1.6bn	+0.14%	19.31%
4	Private label	$610m	-5.75%	7.16%
5	Quaker Oats Co	$546m	-1.93%	6.41%
6	Kashi Co	$139m	-4.65%	1.63%
7	Natures Path Foods	$91m	+1.16%	1.07%
8	Small Plant Foods	$78m	+5.14%	0.93%
9	Bear Naked	$72m	+15.52%	0.86%
10	Kind	$53m	+1.74%	0.62%

Top 10 hot cereal producers for first half of 2018

(Source: IRI, a Chicago-based market research firm (@iriworldwide)

Ranking	Producer	Sales	% Change YAgo	Market share
1	Quaker Oats Co	$812m	+5.85%	60.84%
2	Private label	$275m	-4.24%	20.62%
3	B&G Foods	$73m	+2.60%	5.50%
4	Post Holdings	$44m	+6.79%	3.32%
5	Bob's Red Mill	$42m	+12.62%	3.16%
6	Sturm Foods	$16m	+6.36%	1.24%
7	Natures Path Foods	$14m	+14.68%	1.06%
8	Think Thin	$12m	+55.26%	0.94%
9	Simply Orange Juice Co	$7m	New to market	0.56%
10	Little Crow Foods	$2m	+8.57%	0.22%

Top 10 RTE cereal brands for first half of 2018

(Source: IRI, a Chicago-based market research firm (@iriworldwide)

Ranking	Brand	Producer	Sales	% Change YAgo	Avg Price/Unit	Price Change YAgo
1	Private Label	Private label	$610m	-5.75%	$2.43	4 cents less
2	Honey Nut Cheerios	General Mills	$453m	-10.46%	$3.26	9 cents less
3	Frosted Flakes	Kellogg Co	$412m	-0.82%	$3.13	5 cents less
4	Cheerios	General Mills	$396m	+19.07%	$3.16	11 cents less
5	Honey Bunches of Oats	Post Holdings	$373m	-5.87%	$3.36	1 cent more
6	Cinnamon Toast Crunch	General Mills	$366m	-1.74%	$3.27	6 cents less
7	Lucky Charms	General Mills	$291m	+8.56%	$3.25	4 cents more
8	Froot Loops	Kellogg Co	$267m	+0.31%	$2.94	7 cents less
9	Mini Frosted Wheats	Kellogg Co	$241m	-1.72%	$3.40	7 cents less
10	Quaker Life	Quaker Oats Co	$178m	-3.11%	$3.07	6 cents more

Top 10 hot cereal/oatmeal brands for first half of 2018

(Source: IRI, a Chicago-based market research firm (@iriworldwide)

Ranking	Brand	Producer	Sales	% Change YAgo	Avg Price/Unit	Price Change YAgo
1	Quaker Oatmeal	Quaker Oats Co	$662m	+6.63%	$2.94	2 cents less
2	Private Label Oatmeal	Private label	$275m	-4.24%	$2.06	1 cent more
3	Cream of Wheat	B&G Foods	$68m	+2.90%	$3.52	3 cents more
4	Quaker Lower Sugar Oatmeal	Quaker Oats Co	$43m	+3.96%	$2.69	4 cents less
5	Bob's Red Mill Oatmeal	Bob's Red Mill	$42m	+12.62%	$3.89	9 cents less
6	Quaker Real Medleys Oatmeal	Quaker Oats Co	$22m	-26.53%	$1.63	7 cents less
7	Quaker Protein Oatmeal	Quaker Oats Co	$20m	-1.74%	$2.78	13 cents more
8	Quaker Overnight Oats	Quaker Oats Co	$19m	New to market	$1.53	50 cents more
9	Think Thin Oatmeal	Think Thin	$12.5m	+55.26%	$2.59	24 cents more
10	Malt O Meal	Post Holdings	$12.1m	+4.67%	$3.99	18 cents less