Soggy sales are putting a damper on the cereal market, sinking business for some major brands. The popularity of this once-perennial staple has been declining for years as consumer preferences have shifted to better-for-you and grab-and-go breakfast options.
Challenges and opportunities loom large for big food sellers. While the 25 largest players feasted on 63% of $495 billion in U.S. food and beverage sales in 2016, their share declined from 66% in 2012.1 Private label products, meanwhile, have seen a 3.5% year-over-year expansion of shelf space since 2012.1 Increasing price pressure from upstart store brands and retailers insisting on lower prices are turning up the competitive heat.1
Diversified, delicious and nutritious, breakfast bars and snack bar varieties are a dream-come-true for foodservice operators who want to offer snack options that cater to their customers’ busy lifestyles. As a go-to snack source for on-the-go consumers who gravitate toward quick treats with enough nutritional value to replace a sit-down meal, the bar category is booming.
Size matters, at least when it comes to pushing snack purchases. Consumers agree that anything can be a snack, as long as it’s a small portion size.1 It’s true. Miniaturizing your menu can maximize your opportunity to entice the 94% of adults who snack at least once a day.2