What occurs when you combine one of the most significant trends in the food industry—probiotics—with a longstanding American favorite, cold cereal? This combination could very well lead to a successful outcome. 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, new probiotic-infused products such as juices, sweets, baked goods, and even 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 declined in recent years, with most brands showing little sign of recovery as consumers opt for bars, shakes, yogurt, and other on-the-go items. According to market research firm Euromonitor, cereal sales are projected to drop by 2% in volume and 5% in revenue over the next four years.
Despite this bleak outlook, manufacturers remain undeterred—cereal still ranks as America’s most consumed breakfast, with a household penetration rate of 90%. Consequently, cereal producers are eager to introduce new lines, healthy innovations, and brands while also trying to extend consumption beyond just the breakfast hours. Kellogg, which recently reported a company-wide quarterly net sales decline of 2.5%, remains optimistic about the growth potential for cereal as a snack and dessert. The company has been actively exploring new products and formulations to 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. Notably, Kellogg, which has traditionally marketed its Special K brand as a weight loss solution, now plans to highlight its fiber content and incorporate probiotics. This shift appears logical, given that probiotics are increasingly common in weight loss products. Enhanced fiber content promotes gut health, just like probiotics do. Therefore, it stands to reason that the new Special K offering—rich in both fiber and probiotics—should yield similar benefits.
Probiotics could provide a profitable avenue for cereal makers to entice consumers back to their products by giving them additional reasons to enjoy it. Moreover, integrating elements like bariatric advantage chewable calcium into the mix may further enhance its health appeal. Now, the challenge lies in marketing these innovations effectively to determine if some shoppers are willing to give breakfast in a bowl another chance, especially when they can enjoy the benefits of both probiotics and nutrients like bariatric advantage chewable calcium.