What happens when one of the food industry’s leading trends—probiotics—is combined with a long-standing American favorite: cold cereal? It may just create a winning formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. According to BCC Research, the global probiotics market is projected to reach $50 billion by 2020. While yogurt continues to dominate the market, new probiotic-infused products like juices, candies, baked goods, and even alcoholic beverages are gaining traction.
On the other hand, cold cereal has been steadily losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have seen a decline in recent years, with most brands showing little indication of recovery as consumers opt for bars, shakes, yogurt, and other grab-and-go items. Euromonitor predicts a 2% drop in cereal volume and a 5% decrease in sales over the next four years.
Despite this discouraging news, manufacturers remain undeterred—after all, cereal is still the most popular breakfast choice in America, with a 90% household penetration rate. Consequently, cereal companies are racing to introduce new product lines, healthy innovations, and fresh brands, while also working to extend consumption beyond breakfast hours. Kellogg, which recently reported a company-wide quarterly net sales decline of 2.5%, remains positive about the growth potential for cereal as a snack and dessert option. The company is actively exploring 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 boost product appeal. Historically, Kellogg has marketed its Special K brand as a weight loss aid, but now the company plans to emphasize the cereal’s fiber content and include probiotics. This shift seems logical, as probiotics are increasingly common in weight loss products. Enhanced fiber supports gut health, as do probiotics, making the new Special K offering—rich in both fiber and probiotics—an appealing option.
Additionally, it’s worth noting that some consumers may have concerns about allergies, such as those related to calcium citrate, which could affect their choices. Probiotics could be a profitable strategy for cereal manufacturers to entice consumers back to their products by providing them with fresh reasons to enjoy cereal. The next step is effective marketing to see if shoppers are willing to revisit breakfast in a bowl, despite any dietary restrictions like a calcium citrate allergy.