"Who Eats Cereal Anymore?"... How Generation Z in the US Is Changing the Breakfast Table [The World is Z]

Impact on the Cereal Industry from Changing Eating Habits of Generation Z
"More Generation Z Choose Vegetables for Breakfast"
The Healthy Food Trend Accelerates in Korea

Editor's NoteGeneration Z (those born from the late 1990s to the early 2010s) is gaining attention as a generation that leads culture and trends in a rapidly changing era, setting new standards across society. In [The World is Z], we shed light on the lives and values of Generation Z around the world, and explore how they are changing society.

Hailey Bieber and Blackpink Lisa drinking beverages from Erewhon, a US organic grocery store specializing in eco-friendly organic foods. Hailey Bieber and Blackpink Lisa SNS.

The long-standing association of breakfast in the United States with cereal is now being challenged. Concerns over various additives in cereal are growing, and as eating habits change?particularly among Generation Z?there is a growing trend toward seeking convenient and healthy alternatives such as yogurt or shakes. As a result, cereal sales have continued to decline, significantly impacting the industry as a whole.

"Cereal Sales Have Consistently Declined for 25 Years"

Recently, the US economic magazine Fortune published an article titled "How Generation Z Killed Cereal," reporting, "During the COVID-19 pandemic, many office workers stayed home and enjoyed breakfasts of cereal and milk. However, except for this brief period, cereal sales have steadily declined over the past 25 years."

This trend is evident in sales figures as well. According to market research firm NielsenIQ, from early July 2020 to early July 2021, Americans purchased about 2.5 billion cereal products. However, during the same period this year, the number dropped by more than 13% to 2.1 billion.

There are multiple factors behind the decline in cereal's popularity. First, the mainstreaming of convenient and portable breakfast alternatives, such as energy bars that emerged in the early 1990s, has led to more consumers seeking quick and easy meal solutions. Additionally, growing health concerns over high sugar content and artificial additives have further diminished interest in cereal.

Tom Rees, a manager at Euromonitor Global Food Insight, pointed out, "Cereal struggles to shake off its image as a processed food. The fact that it is not made from ingredients directly sourced from nature, but is instead artificially produced, limits its appeal to consumers." He added, "Cereal manufacturers have tried for decades to build a healthy image by adding vitamins and minerals, but consumers actually tend to trust simpler ingredient lists more."

As Generation Z's Tastes Change... The Cereal Industry Stalls

Health shakes trending among Generation Z in the US. Screenshot from SNS.

Changes in eating habits, especially among younger generations, are also cited as a major reason for the stagnation of the cereal market. They prefer healthy and convenient foods such as yogurt and shakes, and show a clear tendency to prioritize 'health-conscious choices' in their overall diets. Kenton Barello, vice president at market research firm YouGov, explained, "Generation Z, those born between 1997 and 2007, have a higher rate of vegetable consumption at breakfast compared to other generations."

Generation Z also often replaces breakfast with convenience foods depending on the situation, or sometimes skips it altogether. Instead, many consume cereal as a snack or late-night treat at other times of the day. Fortune reported, "Generation Z no longer sees cereal as a part of breakfast," adding, "They are more likely to consume it as a 2 p.m. snack or a late-night treat." The article continued, "Because they have no memories of eating cereal while watching Saturday morning cartoons, they feel little attachment to the nostalgia-based marketing that cereal brands have relied on."

These shifts in consumer behavior have led to corporate restructuring among cereal companies. The Kellogg Group, a US company with a 100-year history, split its snack business into a separate entity in 2023, dividing into two companies: 'WK Kellogg' for cereal manufacturing and 'Kellanova' for snack manufacturing. However, WK Kellogg has not performed as well as expected since the split. As of March this year, WK Kellogg's net debt reportedly reached $569 million (about 785.5 billion KRW).

'Healthy Pleasure' Trend Continues in Korea

A similar trend is emerging in Korea, especially among Generation Z. In particular, after COVID-19, interest in health has increased, leading to the spread of the so-called 'Healthy Pleasure' trend, where consumers seek low-sugar, decaffeinated, and high-protein foods. The Korea Agro-Fisheries & Food Trade Corporation (aT) projects that the domestic protein food market will grow nearly tenfold, from 89 billion KRW in 2018 to 800 billion KRW in 2026.

Generation Z in Korea tends to prefer 'enjoying healthy meals' by using alternative foods?such as tteokbokki or noodles made with konjac instead of flour or rice flour, or pasta made with tofu?rather than forcing themselves to abstain from foods they want to eat. The distribution industry is also rapidly expanding related product lines to keep up with this consumption trend. In particular, the food and beverage industry is launching a series of products emphasizing functionalities such as zero sugar and high protein, aiming to target Generation Z consumers.