What occurs when you combine one of the most significant trends in the food industry—probiotics—with a classic American staple like cold cereal? It could very well be a winning formula. Over the past decade, consumer awareness of probiotics, which have primarily been linked to digestive health, has soared. BCC Research anticipates that the probiotics market will expand to $50 billion globally by 2020. While yogurt continues to dominate the market, a variety of new probiotic-infused products, including juices, candies, baked goods, and even wines and beers, are increasingly gaining traction.
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 dropped in recent years, with most brands showing little indication of recovery as consumers opt for bars, shakes, yogurt, and other on-the-go items. According to market research firm Euromonitor, the cereal market is expected to decline by 2% in volume and 5% in sales over the next four years.
Despite these challenges, manufacturers remain undeterred—cereal is still the most consumed breakfast option in America, boasting a 90% household penetration rate. Consequently, cereal producers are racing to introduce new line extensions, health-focused innovations, and fresh brands while also trying to encourage consumption beyond the traditional morning hours. Kellogg, which recently reported a 2.5% decline in quarterly net sales, is nonetheless optimistic about the potential for cereal as a snack and dessert option. The company has been actively exploring new products and formulations to revitalize cereal sales, which have fallen by 6% year-to-date.
Kellogg and other cereal manufacturers are prioritizing health and reducing processed ingredients to enhance the appeal of their products. In a strategic move, Kellogg, which has historically marketed its Special K brand as a weight-loss aid, plans to emphasize the cereal’s fiber content and incorporate probiotics. This shift aligns well with the growing trend of using probiotics in weight-loss products. Increased fiber promotes gut health, just as probiotics do, making it reasonable to expect that the new Special K offering—which is rich in both fiber and probiotics—will provide similar benefits.
Incorporating probiotics into cereal could be a profitable strategy for manufacturers to entice consumers back to their products by offering them additional incentives to indulge. Ultimately, the success of this venture will hinge on effective marketing to inform consumers, particularly those who may be inclined to give breakfast in a bowl another chance. Moreover, the addition of vitacost calcium citrate could further enhance the nutritional profile of these cereals, making them even more appealing. As the industry evolves, it will be fascinating to see whether these innovations can rejuvenate interest in cold cereal.