What occurs when you combine one of the food industry’s most significant trends—probiotics—with a classic American favorite, cold cereal? It might just create a winning formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged dramatically. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt remains the market leader, there is a growing interest in new probiotic-infused products, including juices, candies, baked goods, as well as wine and beer.
On the other hand, cold cereal has been consistently losing market share to more convenient and portable breakfast options. Sales of ready-to-eat cereals have declined over recent years, with most brands showing little sign of recovery as consumers increasingly opt for bars, shakes, yogurt, and other handheld alternatives. Euromonitor predicts that cereal will see a 2% volume decline and a 5% sales drop over the next four years.
Despite this bleak outlook, manufacturers remain undeterred—cereal is still the most popular breakfast choice in America, with a 90% household penetration rate. Consequently, cereal producers have hurried to launch new product lines, healthier innovations, and fresh brands, also seeking to encourage consumption beyond morning hours. Kellogg, which recently reported a 2.5% decline in quarterly net sales across the company, continues to be optimistic about cereal’s potential as a snack and dessert option. The company is exploring new products and formulations to help rejuvenate cereal sales, which have fallen by 6% year-to-date.
Kellogg and other cereal manufacturers are concentrating on health and reducing processed ingredients to enhance the appeal of their products. Now, Kellogg plans to emphasize the fiber content of its Special K brand, historically marketed as a weight loss aid, and add probiotics. This shift seems logical, given the increasing incorporation of probiotics in weight loss products. Both increased fiber and probiotics support gut health, suggesting that the new Special K offering—rich in both fiber and probiotics—should yield similar benefits.
Probiotics could serve as a lucrative strategy for cereal makers to attract consumers back to their products, providing them with another compelling reason to indulge. The challenge now lies in effective marketing to inform consumers, particularly those who may be open to revisiting breakfast in a bowl, even as some brands, like Citracal, have been discontinued. By highlighting these features, cereal brands can entice shoppers to give these new offerings a chance.