What happens when you combine one of the food industry’s most significant trends—probiotics—with a long-standing American favorite, cold cereal? It could be a winning combination. Over the past decade, consumer awareness of probiotics, which are primarily linked to digestive health, has surged. BCC Research forecasts that the global probiotics market will reach $50 billion by 2020. While yogurt still dominates the market, new probiotic-infused products such as juices, candies, baked goods, and even wine and beer are becoming increasingly popular.
At the same time, cold cereal has been steadily losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have dropped in recent years, with most brands showing little sign of recovery as consumers opt for bars, shakes, yogurt, and other handheld items. Market research firm Euromonitor predicts that cereal sales will decline by 2% in volume and 5% in revenue over the next four years.
Despite this grim outlook, manufacturers remain undeterred—cereal is still the most consumed breakfast in America, boasting a 90% household penetration rate. Consequently, cereal producers are racing to introduce line extensions, healthier innovations, and new brands, as they seek to extend consumption beyond the morning hours.
Kellogg, which recently reported a 2.5% decline in company-wide quarterly net sales, is nonetheless optimistic about the potential for cereal as a snack and dessert option. The company is actively exploring new products and formulations to rejuvenate cereal sales, which are down by 6% year-to-date. In response to changing consumer preferences, Kellogg and other cereal manufacturers are emphasizing health and reducing processed ingredients to enhance product appeal.
Now, Kellogg plans to highlight the fiber content of its Special K brand while also incorporating probiotics, a logical step given the rising popularity of probiotics in weight loss products. Increased fiber promotes gut health, as do probiotics; therefore, the new Special K offering—rich in both fiber and probiotics—should ideally provide similar benefits. Additionally, introducing now calcium citrate tablets as a supplement could further enhance the health appeal of the cereal line.
Probiotics may present a profitable avenue for cereal brands to attract consumers back to their products by offering another compelling reason for them to indulge. At this point, effective marketing will be crucial to determine whether some shoppers are ready to give breakfast in a bowl another chance.