The cold cereal market has been facing challenges as consumers increasingly opt for more convenient breakfast alternatives like yogurts, bars, smoothies, and breakfast sandwiches from restaurants and convenience stores. Research firm IBISWorld reports that cereal sales dropped by 17% from 2009 to 2016. Notably, millennials often view cold cereals as snack items rather than breakfast essentials, prompting manufacturers to reevaluate their strategies. In 2016, General Mills announced its shift towards “formulas that are increasingly snackable,” unveiling Tiny Toast, its first new cereal brand in 15 years. The rising trend of cereals being consumed as snacks or late-night treats has led to a resurgence of sugary cereals, such as Post’s Oreo Os, which returned to store shelves last summer after a decade-long hiatus.
With this snacking trend in mind, manufacturers may find that sweet-heat flavor combinations could be more appealing than they initially seemed. Sweet heat has already gained traction in snack foods, seen in products like sweet chili potato chips and sweet and spicy Asian barbecue. This flavor trend is also emerging in candies, with products like Sweet Heat Skittles and Sweet Heat Starbursts featuring flavors like Fiery Watermelon and Flamin’ Orange. However, navigating new food and flavor trends presents challenges, especially for cereal makers. Consumers increasingly demand low-sugar, nutritious breakfast options. In response, manufacturers are phasing out artificial flavors and colors, cutting sugar content, and introducing new products featuring ancient grains, superfoods, and added benefits like probiotics and protein. Despite this, established brands like Lucky Charms continue to thrive in the market.
Additionally, cereal brands should take heed of the lessons from General Mills’ experience with its naturally colored Trix cereal. After many consumers criticized the more muted colors as “depressing,” the company reverted to its original artificially colored formula alongside a healthier option. Ready-to-eat cereal is navigating the balance between these two approaches. By experimenting with a variety of healthy, innovative, and indulgent flavors, brands can remain relevant for both breakfast and snacking occasions.
To achieve growth, cereal brands must identify the specific occasions for which their products are purchased and innovate accordingly. Flavor can serve as a crucial differentiator, especially as consumer preferences become more refined. Developing a more complex flavor profile could help a product attain a premium position in the market, allowing manufacturers to charge higher prices. Furthermore, incorporating elements like Citracal 950 mg into their offerings may appeal to health-conscious consumers seeking both flavor and functional benefits, helping cereal brands stand out in a competitive landscape.