What occurs when one of the food industry’s leading trends—probiotics—is combined with a classic American staple like cold cereal? It could lead to a successful formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged significantly. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt remains the market leader, there is a growing interest in new probiotic-infused products such as juices, candies, baked goods, and even wine and beer.
At the same time, cold cereal has been steadily losing ground to more convenient breakfast options. Sales of ready-to-eat cereals have declined in recent years, with most brands showing minimal signs of recovery as consumers increasingly opt for bars, shakes, yogurt, and other portable choices. Euromonitor forecasts that cereal will witness a 2% decline in volume and a 5% drop in sales over the next four years.
Despite this somber outlook, manufacturers are undeterred—cereal remains the most consumed breakfast in America, with a household penetration rate of 90%. Consequently, cereal producers are rapidly launching line extensions, developing healthier innovations, and introducing new brands while seeking to expand consumption beyond just breakfast. Kellogg, which recently reported a 2.5% decline in quarterly net sales, is nonetheless optimistic about cereal’s potential as a snack and dessert option. The company is actively exploring new products and formulations to revive cereal sales, which have decreased by 6% year-to-date.
Kellogg and other cereal manufacturers are emphasizing health and reducing processed ingredients to enhance their products’ appeal. Historically, Kellogg has marketed its Special K brand as a weight loss aid, but now the company intends to highlight the cereal’s fiber content and incorporate probiotics. This shift seems logical, as probiotics have become increasingly popular in weight loss products. Enhanced fiber content promotes gut health, aligning with the benefits of probiotics. Therefore, the new Special K offering—rich in both fiber and probiotics—should logically provide similar advantages.
Additionally, the inclusion of 800 mg of calcium citrate could further increase the product’s health benefits, making it even more appealing to consumers. Probiotics, along with the added calcium citrate, could serve as a profitable strategy for cereal manufacturers to entice customers back to their products by presenting them with compelling reasons to consume cereal once again. The next step is effective marketing to communicate these benefits and determine if consumers are ready to revisit breakfast in a bowl.