What occurs when you combine one of the food industry’s most significant trends—probiotics—with a beloved 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 dramatically. BCC Research estimates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate the market, there is a rising interest in new probiotic-infused products such as juices, candies, baked goods, as well as wine and beer.
On the other hand, cold cereal has been gradually losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have declined in recent years, with many brands showing little sign of recovery as consumers opt for bars, shakes, yogurt, and other portable items. According to market research firm Euromonitor, the cereal category is projected to see a 2% drop in volume and a 5% decrease in sales over the next four years.
Despite this bleak outlook, manufacturers remain undeterred—cereal is still the most widely consumed breakfast in America, boasting a 90% household penetration rate. Consequently, cereal producers are rushing to launch new product lines, healthier innovations, and fresh brands while also attempting to encourage consumption beyond breakfast hours. Kellogg, which recently reported a 2.5% decline in quarterly net sales, remains optimistic about cereal’s potential in the snack and dessert markets. The company is actively developing new products and formulations to rejuvenate cereal sales, which are down 6% year-to-date.
Kellogg and other cereal manufacturers are emphasizing health and reducing processed ingredients to enhance the appeal of their products. In a notable shift, Kellogg plans to highlight the fiber content of its Special K brand and incorporate probiotics. This transition appears logical, given the increasing prevalence of probiotics in weight loss offerings. Enhanced fiber supports gut health, as do probiotics, making it reasonable to expect that the new Special K—rich in both fiber and probiotics—will yield similar benefits. Furthermore, adding calcium citrate to the new formulation could appeal to health-conscious consumers looking for an added boost in calcium percent content, as calcium is vital for bone health.
Probiotics could serve as an attractive strategy for cereal manufacturers to entice consumers back to their products by providing another compelling reason to enjoy them. Now, the focus shifts to marketing efforts to spread the word and determine whether some shoppers are willing to revisit breakfast in a bowl, especially with the added benefits of probiotics and calcium citrate.