Cereals are losing their popularity as the bedrock of the American breakfast. Several factors are contributing to this decline. Economic changes and shifts in tastes and preferences have led many people to choose alternatives like yogurt and bagels instead of cereals. Additionally, increasing health consciousness and declining birth rates have reduced cereal consumption. Demographic factors also play a role, as Latinos and Asians often prefer other breakfast options. While cereals still face monopolistic competition from similar products, their price elasticity is inelastic. Surveys show consumption of popular family and children's cereals has decreased between 5-10% in the last decade.

1. Cereals begin to lose
their snap, crackle and
pop
Indira Priyadarsini
Megha chandrika
Rajat Rastogi
Supraja
pallash

2. US Breakfast : CEREALS
 Cereal, the bedrock of the American
breakfast, has lost some of its snap, crackle
and pop
 WHY??

3. FACTORS:
 Economic changes: In mid 1990’s only cereals are
consumed.
 Taste and preference: People are now using yogurt, bagels
etc. for breakfast.
 Health consciousness: people driven by health use non fat
foods which are gluttenfree.
 Birth rate declining: since most of cereals is consumed by
children.

4.  Demographic factors: Many surveys have shown
that Latinos and Asians prefer other breakfast
foods.

5. Substitutes and complimentaries
Substitutes
 Yogurt
 Bagel
 Atkins diet
Complimentary
 Milk
 Fruit

6. shift in demand

7. Cereals price and production curve

8. Indifference curve
 The utility is same whether people intake cereals or bagel or
yogurt.
Yogurt
cereals

9. Monopolistic competition
 Cereals are category which are belonging to the
monopolistic competition
 Since they are some similar products like cereals like
waffles, competition is there.

10. ELASTICITY:
 Point elasticity can measure price elasticity at a point in
the demand curve. So we can measure it from the demand
curve of cereals in US consumption.
 Price elasticity of cereals is inelastic.
cereal price elasticity of demand
all family breakfast cereals -1.8
all types of cereals -0.9

11. Change in consumption 2003-2013
FAMILY CEREALS
–5.5%
Flaked cereals
Including corn flakes, Raisin Bran, etc.
+1.8%
Muesli
Rolled-oat and granola-type cereals.
–3.4%
Other
Including puffed wheat, Cheerios, Life
cereal, etc.
CHILDREN’S CEREALS
–10.7%
All types
Including Lucky Charms, Cocoa Puffs,
etc.
Taken from New York times 6th
sep,2014

12. Conclusion:
 Thus we can say that the demand for the
cereals is decreasing due to many factors
like substitutes,demographic factors..