What occurs when you combine one of the most significant trends in the food industry—probiotics—with a beloved American staple like cold cereal? It could very well be a winning formula. 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 at the forefront, new probiotic-infused products such as juices, candies, baked goods, and even alcoholic beverages are becoming increasingly popular.
Conversely, the cold cereal market has been steadily losing ground to more convenient breakfast options. Sales of ready-to-eat cereals have dipped in recent years, with many brands showing little potential for recovery as consumers gravitate toward bars, shakes, yogurt, and other on-the-go items. Market research firm Euromonitor estimates a 2% decline in cereal volume and a 5% drop in sales over the next four years alone.
Despite these discouraging figures, manufacturers remain undeterred—cereal is still the most consumed breakfast option in America, boasting a 90% household penetration rate. Consequently, cereal producers are racing to roll out line extensions, health-focused innovations, and new brands while also looking to expand consumption beyond the traditional breakfast hours.
Kellogg, despite reporting a 2.5% decline in quarterly net sales across the board, remains optimistic about cereal’s potential as a snack and dessert option. The company is actively exploring new products and formulations in an effort to rekindle cereal sales, which have decreased by 6% year-to-date. To enhance the appeal of their products, Kellogg and other cereal manufacturers are concentrating on health and minimizing processed ingredients.
Now, Kellogg plans to emphasize the fiber content of its Special K brand, alongside the introduction of probiotics—an intuitive shift considering the rising popularity of probiotics in weight loss products. Increased fiber supports gut health, just like probiotics do, suggesting that the new Special K, rich in both fiber and probiotics, should offer similar benefits. Additionally, incorporating elements like calcium chews 500 mg could further enhance its appeal. Probiotics might serve as a profitable strategy for cereal companies to attract consumers back to their products, offering another compelling reason to enjoy cereal. The next challenge will be effective marketing to determine if shoppers are willing to revisit breakfast in a bowl.