What occurs when you combine one of the food industry’s leading trends—probiotics—with a long-standing American favorite like cold cereal? It might just be a winning formula for success. Consumer awareness of probiotics, which have primarily been linked to digestive health, has surged dramatically over the past decade. 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 gaining traction.
On the other hand, cold cereal has been gradually losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have declined in recent years, with most brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other handheld items. Euromonitor, a market research firm, predicts that cereal will see a volume decline of 2% and a 5% drop in sales over the next four years.
Despite the bleak outlook, manufacturers remain undeterred—after all, cereal is still the most consumed breakfast option in America, boasting a 90% household penetration. Consequently, cereal producers are racing to introduce new line extensions, healthy innovations, and new brands while working to encourage consumption beyond the breakfast hours. Kellogg, which recently reported a company-wide net sales decline of 2.5%, remains optimistic about cereal’s potential for growth as a snack and dessert option. The company is actively exploring new products and formulations to revive cereal sales, which are down 6% year-to-date.
To enhance the appeal of their products, Kellogg and other cereal manufacturers are emphasizing health and reducing processed ingredients. Kellogg, which has historically marketed its Special K brand as a weight-loss aid, now plans to highlight the cereal’s fiber content and incorporate probiotics. This shift seems sensible, as the use of probiotics in weight-loss products has become increasingly common. Increased fiber promotes gut health, just as probiotics do. Therefore, it stands to reason that the new Special K offering—rich in both fiber and probiotics—should yield similar benefits.
Moreover, adding vitamin D3 with calcium citrate could further enhance the nutritional profile of these cereals, making them even more attractive to health-conscious consumers. Probiotics might provide a valuable opportunity for cereal manufacturers to entice consumers back to their products by giving them additional reasons to choose cereal. The key now lies in effective marketing to inform shoppers and see if some are willing to give breakfast in a bowl another chance. With a focus on health benefits, including fiber, probiotics, and essential nutrients like vitamin D3 with calcium citrate, the future of cold cereal could be brighter than anticipated.