The cold cereal market has faced challenges as consumers turn to more convenient breakfast options, such as yogurts, bars, smoothies, and breakfast sandwiches from restaurants and convenience stores. Research firm IBISWorld reported a 17% decline in cereal sales from 2009 to 2016. In particular, Millennial consumers tend to view cold cereals more as snack items rather than as essential breakfast foods, prompting manufacturers to rethink their strategies. In 2016, General Mills announced a shift towards developing products that are increasingly snackable, launching Tiny Toast that June, marking their first new cereal brand in 15 years.
The growing trend of consuming cereal as a snack or late-night treat has rejuvenated interest in sugary cereals, exemplified by Post’s Oreo Os, which made a limited-time return last summer after a decade-long hiatus. With the focus on snacking, manufacturers may find that sweet-heat flavor combinations are worth exploring, as this trend has already gained traction in the snack industry, with products like sweet chili potato chips and sweet and spicy Asian barbecue. Furthermore, this trend is spilling into the candy sector, evidenced by the introduction of Sweet Heat Skittles and Sweet Heat Starbursts featuring flavors such as Fiery Watermelon and Flamin’ Orange.
However, navigating new food and flavor trends can be challenging for cereal manufacturers. Consumers increasingly demand low-sugar, nutrient-rich breakfast options. In response, manufacturers have been eliminating artificial flavors and colors, reducing sugar levels, and creating innovative products with ancient grains, superfoods, and added benefits like probiotics and protein. Despite these changes, brands like Lucky Charms continue to thrive. A cautionary example is General Mills’ naturally colored Trix cereal, which faced backlash from consumers who found the new, muted colors “depressing,” prompting the company to reintroduce its original artificially colored version alongside a healthier alternative.
Ready-to-eat cereals are currently trying to navigate this complex landscape. By experimenting with a variety of healthy, innovative, and indulgent flavors, cereal brands may find a way to remain relevant, whether as breakfast options or snacks. The key to growth lies in understanding the specific occasions for which their products are purchased and innovating accordingly. Flavor could serve as a significant differentiator, especially as consumers develop more sophisticated tastes and preferences. A more intricate flavor profile might enable a product to achieve premium positioning, allowing manufacturers to command higher prices.
Additionally, incorporating health-conscious elements, such as those found in products like solaray cal mag citrate chewable, could further attract consumers seeking both enjoyment and nutrition in their cereal choices. By blending indulgent flavors with health-oriented ingredients, brands can potentially capture a larger market share and appeal to the evolving demands of modern consumers.