Higher prices and evolving consumer eating habits are creating obstacles — and opportunities — for merchandisers of center store breakfast foods.

While cereal remains the most popular item, unit sales decreased 5.4% for the 52 weeks ending Jan. 28, with an average price of $4.37, a 9.6% gain, reports Circana, a Chicago-based market research firm.

Unit sales were also down for shelf-stable toaster pastries/tarts (-5.1% with an 8.6% average price increase), and pancake/waffle mixes (-1.7% and a 9.3% price gain). All other shelf-stable breakfast foods, including ready-to-drink meals, instant breakfast, wheat germ, and dried food, had a 13.1% sales decline with a 5.2% price increase.

“Amid inflation and price concerns, the percentage of cereal eaters who cite ‘making something that fits into my budget’ has shot up from just 4% in 2019 to 10% at the end of 2023,” said Brian Kurilla, research supervisor, studio/syndicated, for CivicScience, Inc., a Pittsburgh-based consumer research firm. Thirty-seven percent of shoppers also indicate they consider price when considering what cereal to buy.

In addition to cost, 73% of Americans list flavor and taste as the most important factors when choosing a breakfast cereal, and 32% of cereal buyers consider nutritional content, such as sugar and fiber, CivicScience reports, adding that 35% of the consumers who prepare breakfast cite making something quickly as the biggest breakfast challenge.

While 29% of adults say they regularly eat cereal or oatmeal for breakfast, consumption typically decreases with age. Gen Z adults (ages 18-24) consume the most cereal, with 67% eating it at least once or twice per week, compared to 45% of Baby Boomers (aged 55 and up), CivicScience reports.

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