What occurs when one of the most significant trends in the food industry—probiotics—is combined with a classic American favorite like cold cereal? This combination could potentially lead to a successful outcome. Over the past 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 remains the market leader, new probiotic-infused products such as juices, candy, baked goods, as well as wine and beer, are becoming increasingly popular.
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 over recent years, with most brands showing minimal signs of recovery as consumers gravitate towards bars, shakes, yogurt, and other portable items. Market research firm Euromonitor predicts that cereal will see a 2% drop in volume and a 5% decline in sales over the next four years. Despite this bleak outlook, manufacturers are undeterred—cereal still holds the title of the most consumed breakfast in America, boasting a household penetration rate of 90%. Consequently, cereal producers are rushing to launch line extensions, healthy innovations, and new brands while attempting to extend consumption beyond the morning.
Kellogg, which recently reported a 2.5% decline in overall quarterly net sales, remains hopeful about the growth potential of cereal as a snack and dessert option. The company is actively exploring new products and formulations to revive cereal sales, which have fallen by 6% year-to-date. To enhance their products’ appeal, Kellogg and other cereal manufacturers are focusing on health and reducing processed ingredients. In a notable shift, Kellogg plans to emphasize the fiber content of its Special K brand and incorporate probiotics, which aligns well with the increasing trend of using probiotics in weight loss products. Since increased fiber promotes gut health—much like probiotics—it’s logical to expect that the new Special K product, rich in fiber and probiotics, will yield similar benefits.
Probiotics may prove to be a profitable strategy for cereal manufacturers to entice consumers back to their products by providing additional reasons to indulge. It’s now a matter of effective marketing to communicate these benefits to consumers and encourage them to reconsider breakfast in a bowl. Notably, while exploring dietary options, some consumers may wonder, “Does calcium citrate cause diarrhea?” This question highlights the importance of understanding how different ingredients can affect gut health, which is an ongoing concern for those interested in probiotics and dietary supplements. Ultimately, the success of these innovations will depend on whether consumers are willing to give cold cereal another chance.