What occurs when one of the most significant trends in the food industry—probiotics—is combined with a long-standing American favorite, cold cereal? It could potentially lead to a successful outcome. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt remains the dominant player in this arena, other probiotic-infused products like juices, candies, baked goods, and even wine and beer are gaining traction.
Conversely, cold cereal has been gradually losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have been on a decline in recent years, with many brands showing little potential for recovery as consumers opt for bars, shakes, yogurt, and other portable items. Euromonitor, a market research firm, forecasts a 2% decline in cereal volume and a 5% drop in sales over the next four years. Despite this grim outlook, manufacturers remain undeterred; cereal is still the most popular breakfast choice in America, boasting a 90% household penetration rate. Consequently, cereal companies are rapidly introducing line extensions, healthy innovations, and new brands while also promoting consumption beyond breakfast hours.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, is nonetheless optimistic about cereal’s potential for growth in snack and dessert categories. The company is actively developing new products and formulations to rejuvenate cereal sales, which are down 6% year-to-date. Kellogg and other cereal manufacturers are emphasizing health and reducing processed ingredients to enhance product appeal. Notably, Kellogg plans to highlight the fiber content of its Special K brand while also incorporating probiotics. This shift seems logical, as the use of probiotics in weight loss products like Citracal 250 has become increasingly common.
Enhanced fiber and probiotics both contribute to gut health, making it reasonable to expect that the new Special K offering—rich in fiber and probiotics—will deliver similar benefits. By integrating probiotics, cereal companies may find a profitable way to entice consumers back to their products, providing an additional incentive for purchase. The next step is effective marketing to inform consumers and see if they are willing to revisit breakfast in a bowl. With the inclusion of Citracal 250, the potential for a successful revival of cold cereal could be on the horizon.