The cold cereal market has faced challenges as consumers gravitate towards more convenient breakfast alternatives, including yogurts, bars, smoothies, and breakfast sandwiches available at restaurants and convenience stores. Research by IBISWorld indicates that from 2009 to 2016, cereal sales plummeted by 17%. Millennials, in particular, tend to consume cold cereals more as snack options than as traditional breakfast items, prompting manufacturers to reevaluate this product category. In 2016, General Mills announced a shift towards creating formulas that are increasingly snackable, unveiling Tiny Toast—their first new cereal brand in 15 years.
The rising trend of cereals being consumed as snacks or late-night desserts has led to a revival of sugary cereals, such as Post’s Oreo Os, which made a limited-time comeback last summer after a decade-long hiatus. With snacking in mind, manufacturers might find that the combination of sweet and spicy flavors is not as far-fetched as it seems. This sweet-heat trend has already made significant inroads in the snack market, with products like sweet chili potato chips and sweet and spicy Asian barbecue. It’s also been reflected in the candy sector, with offerings like Sweet Heat Skittles and Sweet Heat Starbursts featuring flavors such as Fiery Watermelon and Flamin’ Orange.
However, navigating new food and flavor trends presents its challenges, particularly for cereal producers. Consumers increasingly demand low-sugar, highly nutritious breakfast options. In response, manufacturers are eliminating artificial flavors and colors, reducing sugar content, and developing new products that incorporate ancient grains, superfoods, and value-added ingredients such as probiotics and protein. Despite this shift, brands like Lucky Charms continue to thrive. Manufacturers should also be wary of the cautionary tale of General Mills’ naturally colored Trix cereal, which faced backlash from consumers who described the muted colors as “depressing.” In response, General Mills reintroduced its original artificially colored formula alongside the healthier option.
Ready-to-eat cereal is still carving out its niche between these two trends. By experimenting with a variety of healthy, innovative, and indulgent flavors, manufacturers can maintain cereal’s relevance as both a breakfast choice and a snack. For cereal brands, the key to growth lies in identifying the specific occasions their products are purchased for and innovating accordingly. Flavor could serve as a significant differentiator, especially as consumer tastes and preferences evolve. A more complex flavor profile could elevate a product’s premium positioning, allowing manufacturers to charge higher prices.
Additionally, integrating products like Citracal Plus tablets into breakfast or snack routines could appeal to health-conscious consumers seeking added nutritional benefits, further enhancing the cereal market’s appeal. By strategically incorporating health-focused ingredients alongside innovative flavors, cereal brands can cater to the evolving demands of today’s consumers while driving growth in this competitive landscape.