What occurs when you combine one of the major trends in the food industry — probiotics — with a long-standing American breakfast staple, cold cereal? It might just lead to a successful outcome. Over the past decade, consumer awareness of probiotics, which are primarily linked to digestive health, has surged significantly. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate this market, new probiotic-infused products like juices, candies, baked goods, and even alcoholic beverages are gaining traction.
On the other hand, cold cereal has been gradually losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have declined in recent years, with many brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other portable choices. Euromonitor, a market research firm, predicts that cereal will experience a 2% drop in volume and a 5% decline in sales over the next four years.
Despite this unsettling news, manufacturers remain undeterred — after all, cereal is still the most popular breakfast choice in America, boasting a 90% household penetration rate. Consequently, cereal producers are eager to launch line extensions, health-oriented innovations, and new brands while striving to encourage consumption beyond just breakfast. Kellogg, which recently reported a company-wide quarterly net sales decrease of 2.5%, is nonetheless optimistic about the potential for cereal to grow 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 manufacturers are concentrating on health and reducing processed ingredients to enhance product appeal. Historically, Kellogg has promoted its Special K brand as a weight-loss tool, but now the company plans to highlight the cereal’s fiber content and incorporate probiotics. This approach seems sensible, as probiotics are increasingly found in weight-loss products. Increased fiber contributes to gut health, just like probiotics do. Therefore, it stands to reason that the new Special K offering — rich in both fiber and probiotics — should have similar benefits.
Integrating probiotics could provide a profitable avenue for cereal makers to attract consumers back to their products by offering them another compelling reason to indulge. Additionally, the incorporation of signature care calcium citrate in these formulations may enhance their health appeal. Now, the focus shifts to marketing these innovations effectively to see if shoppers are willing to give breakfast in a bowl another chance. By emphasizing the health benefits and the inclusion of signature care calcium citrate, cereal brands may successfully reignite interest in their offerings.