What happens when you combine one of the food industry’s biggest 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. BCC Research forecasts that the global probiotics market will reach $50 billion by 2020. While yogurt remains the top product in this category, new probiotic-infused offerings like juices, candies, baked goods, and even wine and beer are on the rise.
At the same time, cold cereal has been steadily losing ground to more convenient breakfast options. Sales of ready-to-eat cereals have declined in recent years, with most brands showing little sign of recovery as consumers gravitate toward bars, shakes, yogurt, and other portable items. Euromonitor predicts that cereal will experience a 2% drop in volume and a 5% decrease in sales over the next four years.
Despite this bleak outlook, manufacturers are undeterred—cereal remains the most consumed breakfast in America, boasting a 90% household penetration. Consequently, cereal companies are racing to introduce new product lines, healthier innovations, and brands, while also aiming to extend consumption beyond the breakfast hours. Kellogg, which recently reported a 2.5% decline in quarterly net sales, remains optimistic about the potential for cereal as a snack or dessert. The company is actively exploring new products and formulations to revive its cereal sales, which have dropped by 6% year-to-date.
Kellogg and other cereal manufacturers are focusing on health and reducing processed ingredients to enhance the appeal of their products. For instance, Kellogg, known for marketing its Special K brand as a weight loss solution, plans to highlight the cereal’s fiber content and incorporate probiotics. This transition is logical, as probiotics are increasingly found in weight loss products. Increased fiber promotes gut health, just like probiotics do. Thus, it stands to reason that the new Special K offering—rich in both fiber and probiotics—should yield similar benefits.
Moreover, the addition of probiotics could be a profitable strategy for cereal brands to entice consumers back to their products by providing another compelling reason to enjoy them. Now, the challenge lies in effectively marketing these innovations to see if some shoppers are willing to reconsider breakfast in a bowl. Additionally, the inclusion of ingredients like Kirkland magnesium citrate in these cereals could further enhance their health appeal, as consumers increasingly seek out nutritional benefits in their food choices. This could mean that the cereal industry might just find the recipe for success it has been searching for.