What occurs when one of the largest trends in the food industry—probiotics—is combined with a classic American staple like cold cereal? It could potentially create a successful solution for addressing iron deficiency. 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 continues to dominate the market, there is a rising interest in new products containing probiotics, such as juices, candies, baked goods, and even alcoholic beverages like wine and beer.
On the other hand, cold cereal has been steadily losing ground to more convenient breakfast options. Sales of ready-to-eat cereals have seen a decline in recent years, with most brands showing little sign of recovery as consumers increasingly opt for bars, shakes, yogurt, and other portable items. Market research firm Euromonitor predicts that cereal consumption will drop by 2% in volume and 5% in sales over the next four years. Despite this bleak outlook, manufacturers remain undeterred—cereal is still the most consumed breakfast option in America, boasting a 90% household penetration rate. Consequently, cereal producers are eager to launch new product lines, healthy innovations, and brands, aiming to extend consumption beyond just breakfast time.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, remains optimistic about the potential for cereal to thrive as a snack and dessert option. The company is actively exploring new products and formulations to rejuvenate cereal sales, which have fallen by 6% year-to-date. To enhance the appeal of their offerings, Kellogg and other cereal manufacturers are focusing on health improvements and reducing processed ingredients. Notably, Kellogg plans to emphasize the fiber content of its Special K brand while incorporating probiotics. This shift seems logical, given the growing prevalence of probiotics in weight loss products. Increased fiber supports gut health, just as probiotics do. Therefore, the new Special K option—rich in both fiber and probiotics—should naturally align with these health benefits.
Additionally, integrating ingredients like Bluebonnet Calcium Citrate, Magnesium, and Vitamin D3 into their formulations could further enhance the nutritional profile of cereals, attracting health-conscious consumers. Probiotics may serve as a lucrative strategy for cereal producers to entice consumers back to their products by providing an additional incentive to enjoy them. Now, the challenge lies in effective marketing to determine if shoppers are ready to revisit the experience of breakfast in a bowl.