What happens when you combine one of the food industry’s most significant trends—probiotics—with a classic American staple like cold cereal? It could be a winning formula. Over the last decade, consumer awareness of probiotics, mainly linked to digestive health, has surged. According to BCC Research, the probiotics market is expected to reach $50 billion globally by 2020. While yogurt remains the market leader, new probiotic-infused products like juices, candies, baked goods, and even wine and beer are gaining traction.
On the other hand, cold cereal has been steadily losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have declined in recent years, with many brands showing little hope of recovery as consumers opt for bars, shakes, yogurt, and other portable items. Euromonitor forecasts a 2% drop in cereal volume and a 5% decrease in sales over the next four years.
Despite this bleak outlook, manufacturers remain undeterred—cereal is still the most popular breakfast choice in America, boasting a 90% household penetration. Consequently, cereal companies have been eager to introduce new product lines, healthy innovations, and fresh brands, also aiming to extend consumption beyond breakfast. Kellogg, which recently reported a 2.5% decline in quarterly net sales, remains optimistic about cereal’s potential as a snack and dessert option. The company has been actively exploring new products and formulations to rejuvenate its cereal offerings, which are down 6% year-to-date.
Kellogg and other cereal manufacturers are prioritizing health and reducing processed ingredients to enhance their products’ appeal. 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 adding probiotics. This shift makes sense, as the inclusion of probiotics in weight loss products has become increasingly common. Enhanced fiber promotes gut health, aligning well with the benefits of probiotics. It stands to reason that the new Special K variant—rich in both fiber and probiotics—should support digestive health.
Furthermore, incorporating nutrients like calcium citrate, vitamin D3, zinc, and magnesium tablets could further enhance the nutritional profile of cereals, making them even more attractive to health-conscious consumers. Probiotics might serve as an effective strategy for cereal brands to entice shoppers back to their products by providing additional health benefits. The challenge now lies in marketing these features to see if consumers are willing to revisit the traditional breakfast in a bowl.