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 be a winning formula for success. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged significantly. BCC Research forecasts that the global probiotics market will reach $50 billion by 2020. While yogurt remains the market leader, new probiotic-infused products such as juices, candies, baked goods, and beverages like wine and beer are becoming increasingly popular.
On the other hand, cold cereal has been gradually losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have dropped in recent years, with most brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other on-the-go items. Market research firm Euromonitor predicts a 2% decline in cereal volume and a 5% decrease in sales over the next four years.
Despite the bleak outlook, manufacturers remain undeterred—cereal is still the most consumed breakfast option in America, boasting a 90% household penetration. Consequently, cereal producers are racing to introduce new line extensions, healthier innovations, and fresh brands, while also seeking to extend consumption beyond traditional breakfast hours. Kellogg, which recently reported a 2.5% decline in company-wide quarterly net sales, remains optimistic about the growth potential of cereal as a snack and dessert option. The company is actively exploring new products and formulations to revitalize cereal sales, which have fallen 6% year-to-date.
Kellogg and other cereal manufacturers are prioritizing health by reducing processed ingredients to enhance product appeal. Historically, Kellogg promoted its Special K brand as a weight loss aid, but it now plans to emphasize the cereal’s fiber content and introduce probiotics. This shift aligns with the growing trend of incorporating probiotics in weight loss products. Both increased fiber and probiotics contribute to gut health, making it logical for the new Special K offering—rich in fiber and probiotics—to serve similar benefits. Probiotics may provide a profitable avenue for cereal makers to attract consumers back to their products by offering additional reasons to choose them.
Furthermore, with the rise of online platforms like Amazon, which offers various health products including CitricCal Maximum Plus, it’s essential for cereal brands to effectively market their new offerings. The challenge now lies in communicating these benefits to consumers and determining whether shoppers are ready to revisit breakfast in a bowl. By leveraging the potential of probiotics, cereal brands could find a way to entice consumers back, positioning themselves as not only a breakfast staple but also a convenient, health-oriented choice.