What occurs when you combine one of the food industry’s most prominent trends — probiotics — with a classic American favorite like cold cereal? This combination might just create a successful formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate the market, new products containing probiotics, including juices, confections, baked goods, and even wine and beer, are becoming increasingly popular.
Conversely, cold cereal has been steadily losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have declined in recent years, with most brands showing little potential for recovery as consumers opt for bars, shakes, yogurt, and other easy-to-eat items. According to market research firm Euromonitor, cereal sales are projected to decrease by 2% in volume and 5% in sales over the next four years.
Despite this discouraging outlook, manufacturers remain undeterred — after all, cereal is still the most consumed breakfast option in America, boasting a household penetration rate of 90%. Consequently, cereal producers have rushed to launch line extensions, healthy innovations, and new brands while also aiming to extend cereal consumption beyond breakfast. Kellogg, for instance, recently reported a company-wide quarterly net sales decline of 2.5%, yet it remains optimistic about the growth potential of cereal as a snack and dessert option. The company is actively exploring new products and formulations to rejuvenate cereal sales, which have dropped by 6% year-to-date.
Kellogg and other cereal manufacturers are emphasizing health and reducing processed ingredients to enhance the appeal of their products. Historically known for marketing its Special K brand as a weight loss aid, Kellogg now plans to highlight the cereal’s fiber content and incorporate probiotics. This shift makes sense, as the inclusion of probiotics in weight loss products has gained traction. Increased fiber promotes gut health, alongside the benefits of probiotics. Thus, the new Special K offering — rich in both fiber and probiotics — is expected to deliver similar benefits. By integrating probiotics, cereal makers may find a profitable avenue to attract consumers back to their products, providing yet another reason to indulge in cereal.
Moreover, incorporating healthy options like calcium citrate with vitamin D3 into cereal could further enhance its nutritional profile and appeal to health-conscious shoppers. Ultimately, effective marketing will be crucial to inform consumers and encourage them to give breakfast in a bowl another chance, especially with the added benefits of probiotics and healthy ingredients like calcium citrate with vitamin D3.