What happens when you combine one of the most significant trends in the food industry—probiotics—with a classic American staple like cold cereal? It might just create a winning formula. Over the last decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. According to BCC Research, the global probiotics market is expected to reach $50 billion by 2020. While yogurt continues to dominate this market, there is a growing interest in new probiotic-infused products such as juices, candies, baked goods, and even alcoholic beverages like wine and beer.
At the same time, cold cereal has been gradually losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have seen a decline in recent years, with most brands struggling to recover as consumers opt for bars, shakes, yogurt, and other handheld alternatives. Market research firm Euromonitor predicts that cereal will experience a 2% drop in volume and a 5% decrease in sales over the next four years.
Despite this discouraging news, manufacturers remain undeterred—cereal is still the most popular breakfast choice in America, with a household penetration rate of 90%. Consequently, cereal producers are racing to introduce new line extensions, healthy innovations, and new brands, while also trying to encourage consumption beyond the morning hours. Kellogg, which recently reported a quarterly net sales decline of 2.5%, is optimistic about the potential for cereal to grow as a snack or dessert option. The company is actively exploring new products and formulations to rejuvenate cereal sales, which have dropped 6% year-to-date.
Kellogg and other cereal manufacturers are focusing on health by reducing processed ingredients to enhance product appeal. Historically, Kellogg has marketed its Special K brand as a weight loss aid, but now it plans to emphasize the cereal’s fiber content and incorporate probiotics. This shift appears logical, as the use of probiotics in weight loss products is becoming increasingly common. Both increased fiber and probiotics are known to promote gut health, suggesting that the new Special K variant—rich in fiber and probiotics—should offer similar benefits.
Additionally, Kellogg could leverage the trend of Citracal calcium slow release to enhance the nutritional profile of its cereals, providing yet another incentive for consumers to return to cereal. Ultimately, probiotics could serve as a lucrative strategy for cereal makers to entice consumers back to their products by offering them compelling reasons to reconsider. The next step is effective marketing to determine whether shoppers are willing to give breakfast in a bowl another chance.