What occurs when you combine one of the major trends in the food industry—probiotics—with a beloved American staple like cold cereal? It could very well be a winning formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged significantly. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt remains the market leader, there is a growing interest in new probiotic-infused products, including juices, candies, baked goods, and even alcoholic beverages like wine and beer.
At the same time, cold cereal has been gradually losing ground to other more convenient breakfast options. Sales of ready-to-eat cereals have been declining in recent years, with most brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other portable items. According to market research firm Euromonitor, the cereal market is projected to shrink by 2% in volume and 5% in sales over the next four years alone.
Despite this bleak outlook, manufacturers remain undeterred—cereal is still the most popular breakfast choice in America, boasting a 90% household penetration rate. Consequently, cereal companies are racing to launch new product lines, healthier innovations, and new brands while trying to promote consumption beyond the morning hours. Kellogg, which recently reported a 2.5% decline in overall quarterly net sales, is nonetheless optimistic about the potential for cereal growth as both a snack and a dessert. The company has been actively exploring new products and formulations to revive cereal sales, which have dropped by 6% year-to-date.
Kellogg and other cereal producers are concentrating on health and reducing processed ingredients to enhance their product’s 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 while incorporating probiotics. This shift seems natural, given that probiotics have become increasingly common in weight loss products. Fiber is known to promote gut health, just like probiotics. Therefore, it is logical to assume that the new Special K offering—rich in both fiber and probiotics—should yield similar benefits.
Moreover, probiotics could serve as a profitable strategy for cereal manufacturers to entice consumers back to their products by providing an additional reason to choose them. Additionally, incorporating calcium carbonate, the same as calcium, could further enhance the nutritional profile of these cereals. Ultimately, the challenge lies in effective marketing to see if some shoppers are willing to revisit the concept of breakfast in a bowl.