What occurs when you combine one of the food industry’s leading trends—probiotics—with a long-standing American favorite, cold cereal? It could very well be a recipe for success. Over the past decade, consumer awareness of probiotics, primarily linked to digestive health, has surged. BCC Research anticipates that the market for probiotic products will reach $50 billion globally by 2020. While yogurt continues to dominate, new probiotic-infused items like juices, sweets, baked goods, and even wine and beer are becoming increasingly popular.
At the same time, cold cereal has been gradually losing market share to more convenient breakfast options. Sales of ready-to-eat cereals have seen a decline in recent years, with many brands struggling to recover as consumers gravitate toward bars, shakes, yogurt, and other portable foods. Market research firm Euromonitor predicts that cereal will see a 2% drop in volume and a 5% decrease in sales over the next four years. Despite this discouraging news, manufacturers remain undeterred—after all, cereal is still the most consumed breakfast in America, boasting a 90% household penetration rate. Consequently, cereal producers are rushing to launch line extensions, healthy innovations, and new brands, seeking to extend consumption beyond the morning hours.
Kellogg, despite reporting a company-wide quarterly net sales decline of 2.5%, remains optimistic about the potential for cereal growth in snack and dessert markets. The company is actively exploring new products and formulations to rejuvenate cereal sales, which have decreased by 6% year-to-date. Kellogg and other cereal manufacturers are concentrating on health and minimizing processed ingredients to enhance the appeal of their products.
Kellogg, which has historically marketed its Special K brand as a weight loss aid, now plans to highlight the cereal’s fiber content and incorporate probiotics. This shift appears logical, as the inclusion of probiotics in weight loss products has become more common. Increased fiber supports gut health, much like probiotics. Therefore, the new Special K variant—rich in both fiber and probiotics—should be equally beneficial. Additionally, probiotics may serve as a profitable means for cereal makers to attract consumers back to their products by providing another incentive for consumption.
Furthermore, the incorporation of calcium citrate malate equivalent to calcium in these cereals could enhance their nutritional profile, appealing to health-conscious consumers. The challenge now lies in effectively marketing these innovations to determine if shoppers are willing to revisit breakfast in a bowl. If successful, the combination of probiotics and calcium citrate malate could rejuvenate the cold cereal market and entice a new generation of consumers.