What occurs when you combine one of the food industry’s most significant trends—probiotics—with a beloved American staple, cold cereal? This combination could potentially create a successful recipe. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. According to BCC Research, the global probiotics market is expected to reach $50 billion by 2020. While yogurt remains the market leader, the popularity of new probiotic-infused products, including juices, confectionery, baked goods, and even wine and beer, is on the rise.
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, as consumers increasingly opt for bars, shakes, yogurt, and other handheld items. Market research firm Euromonitor predicts that cereal will experience a 2% decrease in volume and a 5% drop in sales over the next four years. Despite this concerning outlook, manufacturers remain undeterred—cereal still holds the title of the most consumed breakfast in America, with a household penetration rate of 90%. Consequently, cereal producers are eager to introduce new line extensions, health innovations, and brands while also working to encourage consumption beyond breakfast.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, is nonetheless 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. Kellogg and other cereal manufacturers are focusing on 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 emphasize its fiber content while incorporating probiotics. This shift aligns with the growing trend of using probiotics in weight-loss products. With both fiber and probiotics promoting gut health, it stands to reason that the new Special K—rich in fiber and probiotics—should provide similar benefits.
Introducing probiotics could offer a profitable opportunity for cereal makers to entice consumers back to their products by providing an additional reason to enjoy them. It will now be crucial for marketers to effectively communicate this message and see if consumers are willing to embrace breakfast in a bowl once again. Furthermore, as consumers increasingly look for added nutritional benefits, integrating ingredients like Citracal Calcium D into cereal could enhance its appeal even more. By highlighting these health benefits, cereal brands can attract a broader audience and potentially revitalize their market share.