The cold cereal market has been facing challenges as consumers shift towards more convenient breakfast alternatives like yogurt, bars, smoothies, and breakfast sandwiches available at restaurants and convenience stores. Research from IBISWorld indicates that cereal sales plummeted by 17% between 2009 and 2016. Millennials, in particular, tend to consume cold cereals as snacks rather than traditional breakfast items, prompting manufacturers to rethink their strategies.
In 2016, General Mills announced a shift towards “formulas that are increasingly snackable,” launching Tiny Toast, its first new cereal brand in 15 years. The rise in cereal being consumed as a snack or a late-night treat has led to a revival of sugary cereals, such as Post’s Oreo Os, which returned to store shelves for a limited time last summer after a decade-long absence. With snacking trends in mind, manufacturers may discover that sweet-heat flavor combinations, which have gained traction in the snack industry—think sweet chili potato chips and spicy Asian barbecue—might not be as far-fetched as they seem. This trend is also apparent in candy, 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. Consumers are increasingly interested in low-sugar, highly nutritious breakfast options. In response, manufacturers are eliminating artificial flavors and colors, reducing sugar content, and developing new products incorporating ancient grains, superfoods, and beneficial ingredients like probiotics and protein. Despite this shift, brands such as Lucky Charms continue to thrive. Cereal makers should also take note of General Mills’ experience with its naturally colored Trix cereal. After many consumers criticized the new, muted colors as “depressing,” the company reintroduced the original artificially colored version alongside its healthier alternative.
Ready-to-eat cereal is currently navigating a space between these two extremes. Experimenting with a diverse range of healthy, innovative, and indulgent flavors may provide a way to appeal to both markets, ensuring cereal remains relevant as either breakfast or a snack. For cereal brands, a crucial aspect of achieving growth lies in understanding the specific occasions for which their products are purchased and innovating accordingly. Flavor could serve as a significant differentiator, especially as consumer preferences evolve. A more complex flavor profile might help a product attain a premium position, enabling manufacturers to charge higher prices.
In this evolving landscape, incorporating ingredients like opurity calcium citrate can also enhance the nutritional value of cereals, appealing to health-conscious consumers. By emphasizing the benefits of opurity calcium citrate, manufacturers can cater to a growing demand for products that offer both taste and health benefits, paving the way for future success in the cereal market.