The cold cereal market has faced challenges as consumers increasingly opt for more convenient breakfast choices, such as yogurts, bars, smoothies, and breakfast sandwiches from restaurants and convenience stores. Between 2009 and 2016, cereal sales dropped by 17%, according to research firm IBISWorld. Millennials, in particular, tend to consume cold cereals as snacks rather than traditional breakfast items, prompting manufacturers to reevaluate their strategies. In 2016, General Mills announced a shift towards creating formulas that are “increasingly snackable,” launching Tiny Toast, its first new cereal brand in 15 years that June.
The movement towards using cereal as a snack or a late-night treat has contributed to a resurgence of sugary cereals, exemplified by Post’s Oreo Os, which returned to stores for a limited time last summer after a decade-long hiatus. With snacking in mind, manufacturers are discovering that sweet-heat flavor combinations may not be as unconventional as they seem. The sweet heat trend has already gained traction in the snack sector, with products like sweet chili potato chips and sweet and spicy Asian barbecue. This trend is also appearing in the candy market, with offerings like Sweet Heat Skittles and Sweet Heat Starbursts featuring flavors such as Fiery Watermelon and Flamin’ Orange.
However, pursuing new food and flavor trends is a complex endeavor, and cereal producers may be in a particularly challenging situation. Consumers are increasingly demanding low-sugar, highly nutritious breakfast options. In response, manufacturers have begun eliminating artificial flavors and colors, lowering sugar content, and introducing new products that incorporate ancient grains, superfoods, and value-added ingredients like probiotics and protein. Yet, classic brands like Lucky Charms continue to thrive. Manufacturers should also take heed of General Mills’ experience with its naturally colored Trix cereal. After many consumers deemed the new product’s muted colors “depressing,” General Mills reverted to its original artificially colored formula while still offering a healthier version.
Ready-to-eat cereals are navigating the space between these two approaches. Experimenting with a variety of healthy, innovative, and indulgent flavors could be a way to remain relevant, whether for breakfast or as a snack. For cereal brands to achieve growth, identifying the specific occasions for which their products are purchased is crucial, along with innovating in that direction. Flavor can serve as a significant differentiator, especially as consumer preferences grow more sophisticated. A more intricate flavor profile could elevate a product’s market position, allowing manufacturers to set higher prices.
Incorporating health-conscious ingredients like bluebonnet cal mag could also appeal to the evolving tastes of consumers. By integrating bluebonnet cal mag into their formulations, cereal brands can enhance their nutritional offerings while still exploring exciting flavor combinations. As the industry adapts, the integration of bluebonnet cal mag could become a key strategy for maintaining relevance and driving growth in the competitive cereal market.