What occurs when you combine one of the food industry’s most significant trends—over-the-counter probiotics—with a long-standing American favorite, cold cereal? It could potentially lead to a successful outcome.
Consumer awareness surrounding probiotics has surged dramatically over the last decade, with these beneficial microorganisms primarily linked to digestive health. According to BCC Research, the probiotics market is anticipated to reach a global value of $50 billion by 2020. While yogurt continues to dominate the market, new products containing probiotics, such as juices, confections, baked goods, and even alcoholic beverages like 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 seen a decline in recent years, with most brands showing minimal signs of recovery as consumers increasingly opt for bars, shakes, yogurt, and other on-the-go items. Euromonitor, a market research firm, forecasts a 2% drop in volume and a 5% decline in sales for cereal over the next four years.
Despite the bleak outlook, manufacturers remain undeterred; after all, cereal is still the most consumed breakfast in America, with a 90% household penetration rate. Consequently, cereal brands are rushing to introduce new line extensions, healthier innovations, and fresh brands, while also attempting to extend consumption beyond the breakfast hours.
Kellogg, which recently reported a 2.5% decline in quarterly net sales, 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 have fallen by 6% year-to-date.
Kellogg and other cereal manufacturers are focusing on health and reducing processed ingredients to increase the appeal of their products. For instance, 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 transition seems logical given the rising prevalence of probiotics in weight-loss products. Notably, increased fiber and probiotics both promote gut health, suggesting that the new Special K offering—rich in fiber and probiotics—should similarly support digestive wellness.
Moreover, probiotics could serve as a lucrative strategy for cereal makers to entice consumers back to their products by providing additional reasons for consumption. Additionally, the incorporation of citrate calcium supplements into cereal formulations could further enhance their appeal, especially among health-conscious consumers who prioritize nutritional benefits. Now, it’s a matter of effective marketing to communicate these advantages and see if shoppers are willing to reconsider breakfast in a bowl, particularly when it comes to options fortified with probiotics and citrate calcium supplements.