What occurs when you combine one of the food industry’s most significant trends—probiotics—with a beloved American staple like cold cereal? This combination could be a formula for success. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. BCC Research predicts that the global probiotics market will reach $50 billion by 2020. While yogurt remains the market leader, new probiotic-infused products, including juices, candies, baked goods, and even wine and beer, are gaining traction.
On the other hand, cold cereal has been gradually losing market share to more convenient and portable breakfast options. Ready-to-eat cereal sales have declined in recent years, with most brands showing little indication of recovery as consumers opt for bars, shakes, yogurt, and other handheld alternatives. Market research firm Euromonitor forecasts a 2% decline in cereal volume and a 5% drop in sales over the next four years.
Despite these challenges, manufacturers are undeterred—after all, cereal remains the most consumed breakfast option in America, boasting a 90% household penetration rate. Consequently, cereal producers are racing to introduce new product lines, healthy innovations, and brands, while also seeking to extend consumption beyond traditional breakfast times.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, remains optimistic about cereal’s potential as a snack and dessert. The company is actively exploring new products and formulations to boost cereal sales, which have fallen by 6% year-to-date. Focusing on health and reducing processed ingredients has become a priority for Kellogg and other cereal manufacturers, aiming to enhance product appeal. Historically marketed as a weight-loss aid, Kellogg’s Special K brand plans to emphasize its fiber content and incorporate probiotics. This shift aligns well with the growing trend of using probiotics in weight-loss products. Both increased fiber and probiotics promote gut health, suggesting that the new Special K offering, rich in both nutrients, should have similar benefits.
Moreover, probiotics could serve as a profitable strategy for cereal makers to entice consumers back to their products by providing additional reasons to enjoy them. The question remains: which is better—calcium or calcium citrate? This query could be integrated into marketing efforts to highlight the benefits of the new formulations. Ultimately, it’s about effectively communicating these advantages to see if consumers are willing to revisit breakfast in a bowl.