What occurs when one of the most significant trends in the food industry—probiotics—is combined with a beloved American staple like cold cereal? It could potentially lead to a successful formula. Over the past decade, consumer awareness regarding probiotics, which are primarily linked to digestive health, has seen substantial growth. BCC Research anticipates that the probiotics market will reach $50 billion globally by 2020. While yogurt remains the market leader, new products infused with probiotics, such as juices, confectionery, baked goods, and even alcoholic beverages like wine and beer, are becoming increasingly popular.
At the same time, cold cereal is gradually losing market share to more convenient breakfast alternatives. Sales of ready-to-eat cereals have been declining in recent years, with most brands showing little hope of recovery as consumers opt for bars, shakes, yogurt, and other portable options. Market research firm Euromonitor forecasts a 2% drop in cereal volume and a 5% decrease 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 rushing to roll out new line extensions, healthy innovations, and fresh brands, while also aiming to extend consumption beyond the morning hours.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, remains hopeful about the growth potential of cereal as a snack and dessert option. The company is actively exploring new products and formulations to rejuvenate cereal sales, which are down by 6% year-to-date. In response, Kellogg and other cereal manufacturers are concentrating on health 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 highlight the cereal’s fiber content and introduce probiotics. This seems like a sensible shift, given the rising prevalence of probiotics in weight loss products. Increased fiber supports gut health, as do probiotics. Therefore, Kellogg’s new Special K offering—rich in both fiber and probiotics—should logically achieve similar health benefits.
Incorporating calcium citrate and magnesium citrate into the mix could further enhance the health profile of these cereals, promoting not only digestive health but also bone health and overall wellness. Probiotics could serve as a profitable avenue for cereal brands to entice consumers back to their products, providing an additional reason to enjoy cereal. Now, the focus shifts to marketing strategies that will effectively communicate these benefits and determine if consumers are ready to revisit breakfast in a bowl.