Breakfast cereal bowl

Why Do Breakfast Cereals Cost So Much?

Breakfast, one of the most vital meals in any day can be an expensive consideration. The quality of the breakfast can in most cases dictate how your day will be in general. There are various things you can have for your breakfast. Today, in the world where time is of the essence, people are opting for a breakfast option, that is easy and quick to prepare. One such option is having cereals for breakfast. Recent studies, however, reveal that people have fewer cereals. One of the causes is their price. You might have noticed it as you were passing by the cereals section in the supermarket, that the prices are high.

A Look Into Breakfast Cereals Price Points

So what has led to this development? Following are possible reasons why breakfast cereals costs so much:

  • Compensation for a decrease in volumes. The demand for cereals has been dwindling in the recent past, which means fewer cereals have been sold. You might have also noticed the trend whereby people are consuming lesser milk and fewer carbohydrates for health reasons or otherwise. Parents are also choosing to Spoonful of cerealgive their kids foods that have less sugar in them. All of that leads to lesser cereals volume being sold. To cover for this reduction, cereals manufacturers have increased the prices of the cereals to maintain their profit margins.
  • Climate change. The indirect effects of climate change are usually overlooked by many. Not many people are in a position to see the connection between cereals and climate change. The key ingredients used to make the popular cereals, that is, rice, wheat and corn have been significantly affected by climate change. The high temperatures in the areas where they are produced have led to a decrease in their yields. So you can see why the farmers have to increase the prices they sell them to the manufacturers. They also have to cover the losses. This raises, in general, the cost of production, and eventually the price of the cereals in the supermarket.
  • Oil prices. You have most likely read on the internet, that the price of oil keeps rising steadily with each day. This has also raised the cost of production. The amount of fuel utilized to transport the raw material from the source area to the factories and mills, then from the Miller to the distributors, wholesale and retail alike until they get to the store in your neighborhood is a lot. The Millers also use fuel to run. This generally increases the amount of money used to make the cereals, which in turn is recovered by increasing the prices of the cereals.
  • Customer demands. This is more in the cereals majorly meant for kids. Buyers, mostly parents demand that the cereals be made attractive to the children. This is through designing games on the packaging or placing some games or gifts into the cereal boxes. All this is not free. It has to be accounted for one way or the other.
  • New packaging. Cereal manufacturers have come up with this trick of fooling people into spending more on their products. They have designed new packages, which are larger than the ones before them, but maintain the same amount of content. The prices have also been increased because most shoppers believe that, bigger is better. The content of the smaller and medium packaged cereals has also been reduced, but still maintaining the same prices.

Who Is Dictating The Cereal Price?A bowl of froot loops cereal

One of the major reasons as well why cereal prices are increasing is because of the monopoly from the big manufacturers. The big cereal companies are dictating the prices they want because they face no stiff competition.

The only downside to the trend is that there is no end to this increase. You can expect the price to continue rising. But not to leave on a down note, alternatives to make your own cereals seem to be coming up more on more as people share their own home made cereal recipes.

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