What occurs when one of the most significant trends in the food industry—probiotics—meets a beloved American staple like cold cereal? This combination may create a winning formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. According to BCC Research, the probiotics market is anticipated to reach $50 billion globally by 2020. While yogurt continues to dominate the market, new probiotic-infused products such as juices, candies, baked goods, as well as alcoholic beverages like 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. Sales of ready-to-eat cereals have declined in recent years, with most brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other on-the-go items. Euromonitor’s market research predicts a 2% decline in volume and a 5% drop in sales for cereal over the next four years.
Despite this grim outlook, manufacturers are undeterred—cereal remains the most consumed breakfast choice in America, with a household penetration rate of 90%. Consequently, cereal producers are rushing to launch new product lines, health-focused innovations, and novel brands, while also aiming to extend cereal consumption beyond the morning.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, maintains an optimistic view about cereal’s potential as a snack and dessert option. The company is actively exploring new products and formulations to revitalize cereal sales, which have decreased by 6% year-to-date.
In their efforts to boost product appeal, Kellogg and other cereal manufacturers are prioritizing health and reducing processed ingredients. Kellogg, known for promoting its Special K brand as a weight loss aid, now intends to highlight the cereal’s fiber content while incorporating probiotics. This shift seems logical, as probiotics are increasingly featured in weight loss products. Enhanced fiber supports gut health, just as probiotics do, making the new Special K—a product rich in both fiber and probiotics—an appealing choice.
Additionally, the inclusion of elements like Citracal Petites with Vitamin D can further enhance the health benefits associated with the cereal. Probiotics could serve as a profitable strategy for cereal producers to entice consumers back to their products by offering another compelling reason to enjoy them. The crucial next step is effective marketing to determine if consumers are willing to revisit breakfast in a bowl.