What occurs when you combine one of the food industry’s leading trends—probiotics—with a classic American staple like cold cereal? It could very well lead to a winning formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged significantly. BCC Research estimates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate this market, new probiotic-infused products such as juices, candies, baked goods, and even alcoholic beverages like wine and beer are gaining traction.
In contrast, cold cereal has been steadily losing ground to more convenient and portable breakfast options. Sales of ready-to-eat cereals have seen a downturn in recent years, with most brands struggling to recover 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% drop in sales over the next four years.
Despite the grim outlook, manufacturers remain undeterred—cereal is still the most consumed breakfast option in America, boasting a 90% household penetration rate. Consequently, cereal companies are racing to introduce new product lines, healthier innovations, and fresh brands while attempting to extend cereal consumption beyond just breakfast time. Kellogg, which recently announced a company-wide quarterly net sales decline of 2.5%, remains hopeful about the potential for cereal to become a popular snack or dessert. The company is actively developing new products and formulations to revive cereal sales, which have fallen by 6% year-to-date.
Kellogg and other cereal manufacturers are focusing on health and reducing processed ingredients to enhance product appeal. Now, Kellogg, which has historically marketed its Special K brand as a weight-loss aid, plans to emphasize the cereal’s fiber content and incorporate probiotics. This shift seems logical, as the use of probiotics in weight-loss products has grown more common. Increased fiber promotes gut health, much like probiotics do. Therefore, the new Special K offering—rich in both fiber and probiotics—should naturally support this health trend.
Integrating probiotics could serve as a lucrative strategy for cereal brands to entice consumers back to their products by providing them with additional reasons to indulge. With the addition of probiotics, which can be viewed as a Citracal D equivalent for digestive health, cereal could regain its appeal. Now, it’s a matter of effective marketing to ensure that some shoppers are willing to revisit breakfast in a bowl, especially with the health benefits that probiotics and fiber provide. As the industry adapts to changing consumer preferences, the combination of probiotics and cold cereal may just represent a revitalizing opportunity for growth.