What occurs when you combine one of the food industry’s most prominent trends—probiotics—with a beloved American staple, cold cereal? It could very well be a formula for success. Over the last decade, consumer awareness of probiotics, primarily linked to digestive health, has surged significantly. BCC Research estimates that the global probiotics market will reach $50 billion by 2020. While yogurt remains the market leader, new probiotic-infused products such as juices, candies, baked goods, and even wine are becoming increasingly popular.
At the same time, cold cereal has been steadily losing ground to more convenient and portable breakfast options. Ready-to-eat cereal sales have dropped in recent years, with most brands showing minimal signs of recovery as consumers opt for bars, shakes, yogurt, and other on-the-go items. Market research firm Euromonitor predicts a 2% decline in cereal volume and a 5% drop in sales over the next four years.
Despite this grim outlook, manufacturers have not been discouraged—cereal remains the most consumed breakfast choice in America, boasting a 90% household penetration rate. Consequently, cereal producers have rushed to introduce new line extensions, healthy innovations, and fresh brands, while also aiming to encourage consumption beyond traditional breakfast hours.
Kellogg, which recently reported a 2.5% decline in quarterly net sales across the company, remains hopeful about cereal’s potential in the snack and dessert markets. The company has been actively exploring new products and formulations to rejuvenate cereal sales, which have fallen by 6% year-to-date. Kellogg and other cereal manufacturers are prioritizing health and reducing processed ingredients to enhance the attractiveness of their products.
Kellogg, traditionally known for promoting its Special K brand as a weight loss aid, plans to highlight the cereal’s fiber content while incorporating probiotics. This transition makes sense, as probiotics are becoming increasingly common in weight loss products. Enhanced fiber content promotes gut health, which aligns perfectly with the benefits of probiotics. Thus, the new Special K offering—rich in both fiber and probiotics—should ideally yield similar health benefits.
Additionally, incorporating the daily amount of calcium citrate into cereal could be a lucrative strategy for cereal makers, providing consumers with yet another reason to return to their products. The objective now is effective marketing to inform shoppers and entice them to reconsider breakfast in a bowl. By emphasizing the inclusion of calcium citrate, fiber, and probiotics, cereal brands can potentially attract health-conscious consumers looking for nutritious and convenient breakfast options.