The cold cereal market has faced challenges as consumers increasingly opt for more convenient breakfast alternatives, such as yogurts, bars, smoothies, and breakfast sandwiches available at restaurants and convenience stores. Research firm IBISWorld reported that from 2009 to 2016, cereal sales fell by 17%. Notably, millennial consumers tend to view cold cereals more as snack options rather than essential breakfast items, prompting manufacturers to rethink their strategies.
In 2016, General Mills announced a shift toward creating cereals that are more snackable, leading to the launch of Tiny Toast, its first new cereal brand in 15 years. This shift towards cereals as snacks or late-night desserts has contributed to a resurgence of sugary options, exemplified by the limited-time return of Post’s Oreo Os last summer after a decade-long hiatus.
With the snacking trend in mind, manufacturers may discover that unconventional sweet-heat flavor combinations could resonate with consumers. Sweet heat has already made waves in the snack category, appearing in items like sweet chili potato chips and sweet and spicy Asian barbecue. This trend is filtering into the candy market as well, with products like 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 makers, especially as consumers express a desire for low-sugar, highly nutritious breakfast options. In response, manufacturers are phasing out artificial flavors and colors, reducing sugar content, and developing new products infused with ancient grains, superfoods, and value-added ingredients like probiotics and protein. Interestingly, brands like Lucky Charms continue to thrive despite these challenges.
Cereal brands should take note of General Mills’ experience with its naturally colored Trix cereal. Following consumer backlash against the product’s more muted colors, which were deemed “depressing,” General Mills reverted to its original artificially colored formula alongside the healthier option.
Ready-to-eat cereals are currently navigating the balance between these two approaches. Experimenting with a variety of healthy, innovative, and indulgent flavors may help keep cereals relevant, whether for breakfast or as snacks. The key to growth for cereal brands lies in understanding the specific occasions when their products are purchased and innovating accordingly. Flavor differentiation could play a significant role, especially as consumer tastes become more refined. A more complex flavor profile could help a product achieve a premium status, enabling manufacturers to command higher prices.
In this context, products like Solgar liquid calcium magnesium citrate with vitamin D3 could be integrated into cereal offerings, appealing to health-conscious consumers. Incorporating such nutrient-rich options could enhance cereal’s appeal, particularly among those looking for added benefits in their breakfast or snack choices. By focusing on innovative flavors and health-enhancing ingredients like Solgar liquid calcium magnesium citrate with vitamin D3, cereal brands can position themselves to meet the evolving demands of the market.