What happens when you combine one of the food industry’s most significant trends—probiotics—with a classic American breakfast staple, cold cereal? It could be a winning formula for success. Consumer awareness of probiotics, primarily linked to digestive health, has surged over the past decade. According to BCC Research, the global probiotics market is projected to reach $50 billion by 2020. While yogurt currently dominates the market, new products containing probiotics, such as juices, confections, baked goods, and even wine and beer, are gaining traction.
On the other hand, cold cereal has been steadily losing ground to more convenient breakfast options. In recent years, sales of ready-to-eat cereals have declined, with most brands showing little sign of recovery as consumers opt for bars, shakes, yogurt, and other portable items. Market research firm Euromonitor predicts a 2% drop in volume and a 5% decrease in sales for cereal over the next four years. However, this discouraging news hasn’t dissuaded manufacturers; cereal remains the most consumed breakfast in America, boasting a 90% household penetration rate. Consequently, cereal brands have been racing to introduce line extensions, healthy innovations, and new products, while also trying to extend consumption beyond breakfast hours.
Kellogg, which recently announced a company-wide quarterly net sales decline of 2.5%, remains optimistic about the potential for cereal growth as a snack and dessert option. The company is actively exploring new products and formulations to revitalize cereal sales, which have decreased by 6% year-to-date. In their efforts, Kellogg and other cereal producers are focusing on health and reducing processed ingredients to enhance product appeal. Notably, Kellogg plans to emphasize the fiber content of its Special K brand and incorporate probiotics. This shift seems logical, as the use of probiotics in weight loss products has become increasingly common.
Increased fiber supports gut health, and probiotics do the same. Therefore, the new Special K offering—rich in both fiber and probiotics—should logically provide similar benefits. Additionally, the inclusion of probiotics could serve as a profitable strategy for cereal manufacturers to entice consumers back to their products by offering them another compelling reason to consume cereal. Now, it’s crucial to effectively market these innovations to determine if shoppers are willing to give cereal another chance for breakfast or as a snack.
Moreover, as consumers become more health-conscious, concerns surrounding ingredients like calcium citrate and kidney stones are gaining attention. Cereal brands, including Kellogg, may need to address these health issues in their marketing to reassure consumers. By highlighting not only the benefits of probiotics and fiber but also the importance of ingredients like calcium citrate in maintaining overall health, cereal manufacturers can create a more appealing product. Ultimately, it’s all about spreading the word and seeing if consumers are ready to embrace cereal once more.