Have you heard? Rice crispy treats, a snack loved by all generations, is making a comeback! According to recent research, the global rice crispy treats market is growing at a CAGR of over 4 percent and is expected to increase by $58.2 billion from 2020 to 2024. This is spurred by the growing number of consumers who yearn for nostalgic experiences and look for convenient yet delicious snacks. As consumer preferences shift towards healthier rice crispy alternatives, now is the perfect time to enter this growing market!
Businesses and entrepreneurs who are ready to create their own rice crispy treats need to examine several factors before launching their business. To help you achieve a successful rice crispy treat company, we have put together five important steps to guide you on your journey.
1. Carry Out Market Research
Did you know that smaller rice crispy treat companies are gaining more market share compared to big CPG brands? Kellogg's Rice Krispies Treats® have seen an annual growth of six percent because of increased distribution; however, where they have succeeded in distribution, they have fallen behind in innovation and marketing. They have also come up short in the online marketplace, where consumers have been steadily transitioning to, especially during the pandemic. Because of this, there is a large amount of room for innovative rice crispy treat startups to penetrate the CPG space.
Knowing this, research the market to find out how you can stand out from the competition - think about how you make rice crispy treats healthy and your own. Keep an eye on the big brands, then do the next big thing before anyone else does. Determine what rice crispy bars are most in-demand, growing in demand, or not available on the market, such as paleo, vegan, gluten-free and keto rice crispy treats. Make a healthy rice crispy treat that addresses the competition's shortcomings in these areas. Take time to research innovative trends, sustainable practices, and one-of-a-kind formulas that will set you apart from everyone else.
2. Perfect your Healthy Rice Crispy Treat Recipe
Once you decide what type of rice crispy bars you want to create, it is time to formulate the perfect healthy rice crispy treats recipe. Consumers these days are looking for healthy rice crispy treats with a higher nutritional value. That said, you'll need functional ingredients that work well with your rice crispy treats, such as natural sweeteners, almond butter, adaptogens, keto cereals, whey protein, MCT oil, and so on. Additionally, consumers want “Clean Label” products with no unnatural ingredients, toxic preservatives, and chemical additives.
As you start this process, you’ll notice that formulating a recipe on your own will take a considerable amount of time and money. This is where a rice crispy treat co-manufacturer and co-packer will come in handy. Utilize the services of a contract packer instead of going at it alone. Choose the right co-packer that will help you develop a rice crispy treat recipe that meets and exceeds the nutritional and dietary needs of your customers. Look for co-manufacturers with the right certifications to ensure that your rice crispy treat will be in line with FDA regulations.
3. Partner with the Right Rice Crispy Treat Co-Manufacturer
The ability to scale as your business grows is essential, especially for smaller brands and businesses. The right manufacturer will make or break your ability to deliver the best rice crispy squares to your customers. The right manufacturer will offer full-service turnkey solutions that will help commercialize and bring your rice crispy treat to life in a way that aligns with your mission and vision.
Finding the right co-packer may not be easy, as there are a wide variety of options. Out of those options, you'll need to find a co-packer that understands your business model in order for you to grow in scale. You can accelerate this process by speaking with your own food industry contacts. From there, outsource your search through various search engines and within co-packer directories, such as the Specialty Food Co-Packers Directory. Once you have a list of potential co-packers, talk with them on the phone. Make sure to ask them the right inquiries, such as:
- Where are you located?
- What are your minimum order quantities (MOQs)?
- What types of certifications do you have (Gluten-free, GMO, Organic, SQF)?
- Do you offer Lab-based micro testing, FDA compliant packaging creation, or Amazon-friendly fulfillment services?
4. Establish a Marketing Strategy
Once you have the foundation of your healthy rice crispy treats company, establish a marketing plan. The marketing research you conducted and industry expertise you get from your rice crispy treat co-manufacturer will help you understand your target audience, your competitors, and the benefits of your product compared to the rest. Use this data to create a brand message that will identify with your target market.
eCommerce and social media are essential in building brand awareness and customer loyalty. Since the advent of online shopping, sales in the digital marketplace have sky-rocketed. Even in a post-COVID world, we'll likely never turn back from the thriving future of e-commerce. There are several ways you can take advantage of eCommerce and social media. Here’s how:
- Grab the consumer's attention on an emotional level by creating a brand message that resonates with them;
- Emphasize the benefits and uniqueness of your rice crispy bars compared to others;
- Share customer testimonials on your social media platforms and website;
- Partner with other brands or influencers; and
- Invest in paid advertising campaigns to reach wider audiences.
Your Rice Crispy Treat Company is Ready!
Now, you are ready to launch your rice crispy treat brand. Not sure where to start? We advise establishing your rice crispy company online to start selling. The eCommerce market has gained momentum since the start of the pandemic, with consumers shopping online more than ever before. Brands and businesses that align themselves with consumers’ purchasing behaviors and preferences will be able to successfully launch their rice crispy treat brand while staying ahead of the fray. With this in mind, create your own compelling eCommerce website or make use of a known platform like Amazon to get your rice crispy squares in the hands of your consumers. Remember, hit the social media outlets, hard. This way, you're sure to find interested consumers in this thriving e-commerce environment. To ensure the success of your rice crispy treat company, be sure to have the perfect team in place. Your team should include:
- Your Co-manufacturer / Co-Packer;
- Your Head of Marketing; and
- The CEO.
Finally, you are ready to launch your rice crispy treats company. Best of luck!