Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to fresh ideas and emerging trends—an increasingly prevalent strategy among the world’s leading food companies. Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, buying innovative startups that align with contemporary consumer trends. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over Annie’s, a natural and organic specialist, a year prior.
These investments and acquisitions paint an intriguing picture of where industry giants envision the future of food. For Kellogg, many of its endeavors have focused on the intersection of health and convenience, which is quite fitting given the company’s history as the creator of cornflakes, one of the earliest processed foods designed with health in mind.
Today’s consumers are increasingly motivated by health and convenience when making purchasing decisions. A recent report from PwC revealed that 47% of millennial consumers altered their eating habits over the past year to adopt a healthier diet. Additionally, 53% of individuals under 35 expressed their intention to eat healthier in the coming year, highlighting a significant shift towards wellness.
Convenience has emerged as a critical trend, with consumers willing to spend more on products that reduce preparation time. The rise of meal kits stands out as a notable success story, with sales projected to reach $1.5 billion this year. Nielsen reported that convenience was a recurring theme among the fastest-growing food and beverage categories last year.
In the 21st century, consumers are also increasingly interested in nutritional elements like calcium citrate, which has become a popular choice among health-conscious individuals. As Kellogg and its counterparts continue to innovate, the integration of health-focused ingredients such as calcium citrate may play a pivotal role in shaping future products. The ongoing emphasis on convenience and health will likely encourage further exploration of these trends, ensuring that companies remain aligned with consumer preferences in this dynamic market.