What occurs when you combine one of the food industry’s most significant trends—probiotics—with a classic American favorite, cold cereal? It could be a winning formula for success. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged significantly. According to BCC Research, the global probiotics market is projected to reach $50 billion by 2020. While yogurt continues to dominate the market, new probiotic-infused products like juices, candies, baked goods, and even alcoholic beverages are becoming increasingly popular.
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 seen a decline in recent years, with most brands showing minimal signs of recovery as consumers shift their preferences toward bars, shakes, yogurt, and other handheld items. Market research firm Euromonitor forecasts that cereal will experience a 2% decline in volume and a 5% drop in sales over the next four years.
However, this bleak outlook hasn’t discouraged manufacturers—cereal remains the most consumed breakfast in America, with a 90% household penetration rate. Consequently, cereal producers are racing to introduce line extensions, innovative health-focused products, and are striving to extend cereal consumption beyond breakfast hours. Kellogg, which recently reported a company-wide quarterly net sales decline of 2.5%, remains hopeful about the potential for cereal to grow as a snack and dessert option. The company is actively exploring new products and formulations to rejuvenate cereal sales, which are down 6% year-to-date.
Kellogg and other cereal manufacturers are concentrating on health benefits and reducing processed ingredients to enhance the appeal of their products. Notably, Kellogg, which has historically marketed its Special K brand as a weight loss aid, plans to emphasize the cereal’s fiber content while incorporating probiotics. This shift seems logical, given the rising popularity of probiotics in weight loss products. Enhanced fiber content contributes to gut health, as do probiotics, making the new Special K formulation, rich in both fiber and probiotics, a promising option. Furthermore, the inclusion of calcium citrate extended release in the product could provide additional health benefits, further enticing consumers.
Probiotics may offer a profitable avenue for cereal manufacturers to entice consumers back to their products by presenting them with compelling reasons to indulge. Now, it’s all about effective marketing to see if shoppers are willing to revisit the idea of breakfast in a bowl. As the industry evolves, the combination of probiotics and calcium citrate extended release could be the key to revitalizing cold cereal sales and appealing to health-conscious consumers.