What occurs when you combine one of the food industry’s most significant trends—probiotics—with a beloved American staple like cold cereal? It could very well lead to a successful outcome. Consumer awareness of probiotics, primarily linked to digestive health, has surged dramatically over the past decade. BCC Research estimates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate this market, there’s a rising interest in new probiotic-infused products, including juices, candies, baked goods, and even wine and beer.
In contrast, cold cereal has been gradually losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have seen a decline in recent years, with many brands struggling to recover as consumers opt for bars, shakes, yogurt, and other portable alternatives. Market research firm Euromonitor predicts a 2% volume decline and a 5% sales drop for cereal over the next four years.
Despite this discouraging trend, manufacturers remain undeterred—cereal is still the most popular breakfast choice in America, boasting a 90% household penetration rate. Consequently, cereal producers are racing to launch new line extensions, healthier innovations, and fresh brands, while also aiming to promote consumption beyond just breakfast.
Kellogg, which recently reported a 2.5% decline in company-wide quarterly net sales, is nonetheless optimistic about cereal’s potential 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 concentrating on health and reducing processed ingredients to enhance the appeal of their offerings. Now, Kellogg, which has historically marketed its Special K brand as a weight-loss aid, plans to emphasize the cereal’s fiber content and incorporate probiotics. This shift seems sensible, given the rising trend of using probiotics in weight-loss products. Increased fiber promotes gut health, a benefit also associated with probiotics. Therefore, the new Special K formulation—rich in both fiber and probiotics—should logically provide similar health advantages.
Moreover, probiotics could serve as a profitable strategy for cereal producers to entice consumers back to their products, offering them another compelling reason to indulge. The challenge now lies in effectively marketing these benefits to encourage shoppers to reconsider breakfast in a bowl. As part of this health-focused approach, it may also be worth noting the availability of Citracal without vitamin D, which aligns with the growing emphasis on gut health and wellness. By integrating these trends, cereal makers could potentially revive interest in cold cereal and inspire a new wave of consumer enthusiasm.