What occurs when you combine one of the food industry’s most significant trends—probiotics with 300mg of ferrous sulfate—into a beloved American staple like cold cereal? This combination might just lead to a successful outcome. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged dramatically. BCC Research forecasts that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate the market, innovative probiotic-infused products such as 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 and portable breakfast options. Sales of ready-to-eat cereals have declined in recent years, with many brands showing little hope for recovery as consumers opt for bars, shakes, yogurt, and other handheld items. Euromonitor, a market research firm, predicts a 2% decline in cereal volume and a 5% decline 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 rate. Consequently, cereal companies are quickly introducing new line extensions, healthy innovations, and fresh brands while striving to extend consumption beyond breakfast hours. Kellogg, which recently reported a 2.5% decline in overall quarterly net sales, remains hopeful about cereal’s potential as a snack and dessert option. The company is actively exploring new products and formulations to revitalize cereal sales, which have fallen by 6% year-to-date.
Kellogg and other cereal producers are concentrating on health improvements and reducing processed ingredients to enhance product appeal. Notably, Kellogg, which has traditionally marketed its Special K brand as a weight-loss aid, plans to emphasize the cereal’s fiber content and incorporate probiotics. This shift appears logical, given the rising popularity of probiotics in weight-loss products. Both increased fiber and probiotics support gut health, making it reasonable to expect that the new Special K, rich in fiber and probiotics, will yield similar benefits.
Probiotics could serve as a profitable strategy for cereal manufacturers to entice consumers back to their products by providing an additional reason to enjoy them. Now, the challenge lies in effectively marketing these innovations to see if shoppers will be willing to give breakfast in a bowl another chance. Additionally, incorporating products like CVS Citracal could further enhance the health appeal, reinforcing the message that cereals can be both nutritious and enjoyable. With the right marketing strategies, there’s potential for a revival in cereal consumption, particularly if consumers recognize the added benefits of fiber and probiotics alongside other health-focused products.