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, view cold cereals more as snack options than as traditional breakfast items, prompting manufacturers to reevaluate their strategies. In 2016, General Mills announced its intention to concentrate on products that are “more snackable,” and in June of that year, it introduced Tiny Toast, its first new cereal brand in 15 years. This shift towards consuming cereal as a snack or late-night treat has led to a revival of sugary cereals, including the return of Post’s Oreo Os, which hit the shelves last summer after a decade-long hiatus.
With snacking trends in mind, manufacturers might find that sweet-heat flavor combinations are less unconventional than they seem. This flavor pairing has already gained traction in the snack world, with items such as sweet chili potato chips and sweet and spicy Asian barbecue. The trend is also making its mark in the candy sector, 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 poses challenges, particularly for cereal producers. Consumers are increasingly demanding low-sugar, highly nutritious breakfast options. In response, manufacturers have been eliminating artificial flavors and colors, lowering sugar content, and developing new products that incorporate ancient grains, superfoods, and added benefits like probiotics and protein. Meanwhile, brands like Lucky Charms continue to thrive.
Cereal makers must also take note of General Mills’ experience with its naturally colored Trix cereal. After receiving negative feedback from consumers who described the muted colors as “depressing,” the company reverted to its original artificially colored formula while keeping the healthier version on the market. Ready-to-eat cereal is navigating a fine line between these two approaches. By experimenting with a variety of healthy, innovative, and indulgent flavors, manufacturers can maintain cereal’s relevance, whether for breakfast or as a snack.
To achieve growth, cereal brands need to pinpoint the occasions for which their products are purchased and innovate accordingly. Flavor could serve as a significant differentiator, especially as consumer tastes and expectations evolve. A more intricate flavor profile may help a product attain a premium status, potentially allowing manufacturers to command higher prices. Additionally, incorporating ingredients like calcium citrate 315 250 can cater to health-conscious consumers looking for added nutritional benefits. By recognizing the importance of occasion-based purchases and leveraging unique flavors, cereal manufacturers can strategically position their products for success in a competitive market.