What occurs when you combine one of the food industry’s most significant trends—probiotics—with a classic American favorite, cold cereal? It could potentially create a winning formula. Over the last decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. BCC Research anticipates that the global probiotics market will reach $50 billion by 2020. While yogurt continues to dominate the market, new probiotic-infused products such as juices, candies, baked goods, and even alcoholic beverages are becoming increasingly popular.
In contrast, cold cereal has been steadily losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have declined in recent years, with most brands showing little potential for recovery as consumers opt for bars, shakes, yogurt, and other portable choices. According to market research firm Euromonitor, the cereal industry is expected to see a 2% volume decline and a 5% sales drop over the next four years.
Despite this discouraging news, manufacturers remain undeterred—cereal is still the most commonly consumed breakfast in America, boasting a 90% household penetration rate. Consequently, cereal producers are racing to launch new product lines, healthy innovations, and fresh brands, all while trying to expand consumption beyond breakfast hours. Kellogg, which recently reported a 2.5% decline in overall quarterly net sales, remains optimistic about the potential for cereal to thrive as a snack or dessert. The company is actively exploring new products and formulations in an effort to rejuvenate cereal sales, which are down 6% year-to-date.
To enhance their appeal, Kellogg and other cereal manufacturers have focused on health benefits and reducing processed ingredients. In a significant shift, Kellogg, which previously marketed its Special K brand as a weight-loss aid, now plans to emphasize the cereal’s fiber content and incorporate probiotics. This shift makes sense, given the increasing prevalence of probiotics in weight-loss products. Higher fiber intake promotes gut health, as do probiotics. Therefore, the new Special K offering—rich in both fiber and probiotics—should logically provide similar benefits.
Moreover, the inclusion of low dose calcium citrate in the formulation could further enhance its appeal to health-conscious consumers. Probiotics may serve as a profitable strategy for cereal makers to attract consumers back to their products by providing additional health incentives. Now, the focus shifts to marketing these innovations effectively to determine if consumers are willing to revisit breakfast in a bowl.
In summary, the integration of probiotics and low dose calcium citrate into cold cereals may not only rejuvenate interest in this traditional breakfast option but could also pave the way for a successful revival in sales.