What occurs when one of the most significant trends in the food sector—probiotics—meets a long-standing American favorite, cold cereal? This combination could potentially lead to a successful outcome. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged dramatically. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate the market, new probiotic-infused products like juices, candies, baked goods, and even beverages such as wine and beer are becoming increasingly popular.
Meanwhile, cold cereal has consistently been losing ground to other more convenient and portable breakfast options. Ready-to-eat cereal sales have declined in recent years, with most brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other grab-and-go alternatives. Euromonitor, a market research firm, predicts that cereal volume will decrease by 2% and sales by 5% over the next four years.
Despite these bleak prospects, manufacturers remain undeterred—cereal is still the most consumed breakfast option in America, boasting a 90% household penetration rate. Consequently, cereal producers are rushing to introduce new product lines, healthy innovations, and fresh brands while also aiming to extend breakfast consumption into other parts of the day. Kellogg, which recently announced a 2.5% decline in company-wide quarterly net sales, remains hopeful about the growth potential of cereal as a snack and dessert option. The company is actively exploring new products and formulations to revive cereal sales, which have seen a 6% decrease year-to-date.
Kellogg and other cereal producers are concentrating on health by reducing processed ingredients to enhance product appeal. Historically, Kellogg has marketed its Special K brand as a weight loss solution, but now it aims to emphasize the cereal’s fiber content while incorporating probiotics. This transition seems logical, as the use of probiotics in weight loss products has gained traction. Increased fiber supports gut health, just as probiotics do. Therefore, the new Special K offering—rich in both fiber and probiotics—should ideally promote similar benefits.
Furthermore, probiotics could serve as a lucrative strategy for cereal manufacturers to attract consumers back to their products by providing an additional incentive for consumption. Notably, the inclusion of calcium citrate indications related to digestive health could enhance the appeal of these new cereal offerings. Now, the focus shifts to marketing these innovations effectively to determine whether some shoppers are willing to revisit breakfast in a bowl.