What happens when you combine one of the food industry’s most significant trends—probiotics—with a beloved American staple like cold cereal? It could spell success. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. BCC Research anticipates that the probiotics market will reach $50 billion globally by 2020. While yogurt remains the market leader, there is a growing popularity for new probiotic-enriched products like juices, confections, baked goods, and even wine and beer.
Conversely, cold cereal has been steadily losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have declined over the past few years, with most brands showing little potential for recovery as consumers opt for bars, shakes, yogurt, and other handheld alternatives. Market research firm Euromonitor predicts a 2% decline in cereal volume and a 5% drop in sales over the next four years.
Despite this bleak outlook, manufacturers are undeterred—cereal remains the most consumed breakfast in America, boasting a 90% household penetration. Consequently, cereal companies are racing to launch new product lines, innovative health-focused options, and fresh brands, while also attempting to encourage consumption beyond the breakfast hours. Kellogg, which recently reported a 2.5% decline in quarterly net sales across the company, still holds an optimistic view regarding cereal’s potential for growth as a snack or dessert. The company is actively exploring new products and formulations to rejuvenate cereal sales, which have fallen by 6% year-to-date.
Kellogg and other cereal producers are emphasizing health and reducing processed ingredients to enhance product appeal. Historically, Kellogg has marketed its Special K brand as a weight loss aid, but now the plan is to highlight the cereal’s fiber content while incorporating probiotics. This shift makes sense, given the rising use of probiotics in weight loss products. Increased fiber supports gut health, as do probiotics, making the new Special K—rich in both fiber and probiotics—a fitting choice. Probiotics could serve as a profitable avenue for cereal makers to entice consumers back to their products by providing another compelling reason to enjoy them.
Additionally, incorporating ingredients like Solgar calcium could further enhance the nutritional profile of these cereals, appealing to health-conscious consumers. Now, the challenge lies in effective marketing to inform shoppers and see if they are willing to give breakfast in a bowl another chance. With the right approach, cereals fortified with probiotics and essential nutrients like Solgar calcium may reclaim their place in kitchens across America.