What occurs when one of the most significant trends in the food industry—probiotics—is combined with a beloved American staple, cold cereal? This could lead to 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 expected to reach $50 billion by 2020. While yogurt continues to dominate the market, other probiotic-infused products, including juices, confections, baked goods, and even wine and beer, are becoming increasingly popular.
On the other hand, cold cereal has been gradually losing market share to more convenient, portable breakfast options. Sales of ready-to-eat cereals have dropped in recent years, with many brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other on-the-go items. Market research firm Euromonitor forecasts a 2% decline in cereal volume and a 5% decrease in sales over the next four years.
Despite this discouraging outlook, manufacturers remain undeterred—after all, cereal is still the most consumed breakfast in America, boasting a 90% household penetration. Consequently, cereal companies are eagerly introducing new line extensions, healthy innovations, and fresh brands, while also striving to extend consumption beyond the breakfast hours. Kellogg, which recently reported a 2.5% decline in company-wide quarterly net sales, 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 rejuvenate cereal sales, which have fallen by 6% year-to-date.
Kellogg and other cereal manufacturers are prioritizing health and reducing processed ingredients to enhance the appeal of their products. In a strategic shift, Kellogg, known for marketing its Special K brand as a weight loss aid, plans to emphasize the cereal’s fiber content and incorporate probiotics. This transition is logical, given the increasing prevalence of probiotics in weight loss products. Higher fiber levels promote gut health, as do probiotics, suggesting that the new Special K offering—rich in both fiber and probiotics—should have similar benefits.
Moreover, the addition of lifetime calcium magnesium citrate plus vitamin D3 to cereal could offer another health advantage, targeting consumers interested in overall wellness. Probiotics may serve as a lucrative strategy for cereal companies to entice consumers back to their products by providing additional reasons for consumption. The key now lies in effective marketing to inform shoppers and determine if they are willing to revisit breakfast in a bowl, especially with the promise of enhanced health benefits.