The cold cereal market has been facing challenges as consumers shift towards more convenient breakfast alternatives like yogurts, bars, smoothies, and breakfast sandwiches from restaurants and convenience stores. Research firm IBISWorld reports a 17% decline in cereal sales from 2009 to 2016. Particularly among millennials, cold cereals are often consumed as snacks rather than traditional breakfast items, prompting manufacturers to reevaluate their strategies. In 2016, General Mills announced its intent to prioritize formulas that are increasingly snack-friendly, launching Tiny Toast—its first new cereal brand in 15 years—in June of that year. The growing trend of consuming cereal as a snack or late-night dessert has revitalized interest in sugary cereals, exemplified by the return of Post’s Oreo Os to store shelves for a limited time after a decade-long hiatus.
With snacking at the forefront, manufacturers may discover that sweet-heat flavor combinations are worth exploring. This flavor profile has already gained traction in snacks, from sweet chili potato chips to sweet and spicy Asian barbecue. It is also making waves in the candy market, 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 presents its challenges, particularly for cereal makers. Consumers are increasingly seeking low-sugar, highly nutritious breakfast options. In response, manufacturers are eliminating artificial flavors and colors, reducing sugar content, and developing new products featuring ancient grains, superfoods, and added benefits like probiotics and protein. Meanwhile, brands such as Lucky Charms continue to enjoy lasting success.
The experience of General Mills with its naturally colored Trix cereal serves as a cautionary tale; after many consumers deemed the muted colors “depressing,” the company reinstated its original, artificially colored formula alongside the healthier version. Ready-to-eat cereals are now navigating a balance between these two worlds. By experimenting with a variety of healthy, innovative, and indulgent flavors, cereal can maintain relevance as either a breakfast item or a snack.
For cereal brands to achieve growth, they must identify the specific occasions for which their products are purchased and innovate accordingly. Flavor differentiation could play a crucial role, especially as consumer preferences become more sophisticated. A more complex flavor profile could elevate a product’s premium positioning, allowing manufacturers to command higher prices. Additionally, incorporating nutritional enhancements like bonex calcium citrate could further appeal to health-conscious consumers, reinforcing the brand’s commitment to quality and innovation. Thus, the integration of bonex calcium citrate can emerge not only as a selling point but also as a vital component in cereal brands’ strategies to adapt to changing consumer demands and preferences.