What occurs when you combine one of the food industry’s most significant trends—probiotics—with a long-standing American favorite, cold cereal? It could be a winning formula. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. According to BCC Research, the global probiotics market is projected to reach $50 billion by 2020. While yogurt remains the leader in 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 steadily losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have declined recently, with most brands showing little sign of recovery as consumers turn to bars, shakes, yogurt, and other portable items. Market research firm Euromonitor estimates that cereal volume will drop by 2% and sales by 5% over the next four years.
Despite this bleak outlook, manufacturers remain undeterred. Cereal is still the most consumed breakfast in America, with a household penetration rate of 90%. Consequently, cereal companies have hurried to introduce new line extensions, healthier innovations, and fresh brands, while also trying to extend cereal consumption beyond just breakfast. Kellogg, which recently reported a 2.5% decline in company-wide quarterly net sales, remains optimistic about the potential for cereal to grow as a snack and dessert option. The company is actively exploring new products and formulations to revive cereal sales, which are down 6% year-to-date.
Kellogg and other cereal manufacturers are now focusing on health by reducing processed ingredients to enhance product appeal. In a notable shift, Kellogg, which has traditionally marketed its Special K brand as a weight loss aid, plans to emphasize the cereal’s fiber content and incorporate probiotics. This transition makes sense, as the use of probiotics in weight loss products has become increasingly common. Enhanced fiber promotes gut health, as do probiotics, suggesting that the new Special K, rich in both fiber and probiotics, could provide similar benefits. Additionally, incorporating ingredients like Cal Mag Citrate from Solaray may further boost the health appeal of cereal products.
Probiotics could serve as a profitable strategy for cereal manufacturers to entice consumers back to their offerings by providing them with additional health reasons to enjoy it. Now, the challenge lies in marketing these innovations effectively, to determine whether shoppers are ready to give breakfast in a bowl another chance. By leveraging health trends and incorporating ingredients like Cal Mag Citrate from Solaray, cereal brands can potentially reclaim their position in consumers’ morning routines.