Global Organic Cereals Market - 2023-2030

Overview:

Global Organic Cereals Market reached US$ 4.3 billion in 2022 and is expected to reach US$ 7.4 billion by 2030, growing with a CAGR of 6.9% during the forecast period 2023-2030.

The increasing health benefits awareness of the consumers of a healthy diet presents a major opportunity for organic cereals. An increase in the merger and acquisition strategies by the major key players in the industry helps to boost market growth over the forecast period. For instance, in June 2023, Nature's Path Organic Foods, North America's largest organic snack and breakfast company expanded its business with the acquisition of love child organics valued at $499M in Canada and $8.5B in the United States.

The growing popularity of plant-based and vegan diets presents a substantial market opportunity. Organic cereals often free from animal-derived ingredients, are suitable for organic cereals dietary preferences and marketed as such. An increase in the availability of various options of organic cereals in different flavors and textures further helps to boost the market growth of organic cereals.

Dynamics:

Rising Consumers Demand for Natural and Organic Products

The increasing popularity of plant-based and vegan diets has driven demand for organic cereals, which are often suitable for these dietary preferences due to their plant-based nature. Strict regulations and certification standards governing organic products provide consumers with confidence that products labeled as "organic" meet specific quality and production criteria, which boosts demand.

Many retailers have expanded their organic product offerings, including organic cereals, making them more readily available and visible to consumers. Many health organizations create awareness about the consumption of organic cereals and their health benefits. Also, the increasing trend of minimaly processed food and natural food further helps to boost market growth of the organic cereals market.

Increasing Availability of Organic Cereal Products in the Market

Consumers often prefer products that are sourced locally, supporting both the organic movement and local agriculture. Retailers develop their own private-label organic cereal products, offering them at competitive prices. This can increase the availability of affordable organic cereals and drive market growth.

The growth of e-commerce platforms has made it easier for consumers to access a wide range of organic cereals. Online availability contributes to market growth, particularly for consumers who prefer online shopping. Manufacturers of organic cereals launched new products in the market to fulfill consumer's increased demand. For instance, on, September 11, 2023, SunOpta launched Newest Flavor in its SOWN organic oat creamer lineup.

High Cost

Maintaining the integrity of organic certification throughout the supply chain can be costly and complex. Ensuring that ingredients remain organic from farm to table involves rigorous standards and auditing, which can add to production costs. Government policies related to organic certification and regulations can also influence costs.

Changes in these policies can either alleviate or exacerbate cost challenges for organic cereal producers. Consumers seeking healthier breakfast options may choose alternatives to cereal altogether, such as yogurt, smoothies, or fresh fruit, which can impact the market for cereal products, including organic varieties.

Segment Analysis:

The global organic cereals market is segmented based on type, application, distribution channel and region.

Increase in the Consumer's Demand for Oat-based Cereal Breakfast

Oats have received positive media coverage and endorsements from health experts, reinforcing their image as a nutritious and wholesome choice for breakfast. Oat-based cereals are easy to prepare and consume, making them a convenient option for busy individuals and families. Oats have received positive media coverage and endorsements from health experts, reinforcing their image as a nutritious and wholesome choice for breakfast.

Some of the major key players launched new products in the market that helped to boost market growth over the forecast period. For instance, on June 08, 2023, SunOpta and Seven Sundays together launched Oat Protein Cereal in the market with SunOpta's upcycled oat protein powder. The newly launched product is available in four flavors such as super fruity, simply honey, maple cinnamon and chocolate sea salt.

Geographical Penetration:

North America Accounted for the Largest Share in the Market

The United States and Canada are major shareholding countries in the region due to an increase in the disposable income of the consumers and an increase in the health benefits awareness of consumers about consuming organic cereals. Also, the increase in the consumer's awareness of environmental issues and sustainable agriculture practices is on the rise that positively impacted on the market growth.

An increase in product launches by the major key players in the region helps to boost the regional growth of the market over the forecast period. For instance, on January 26, 2023, Kellogg Canada launched a New Innovation Line-Up in the region. The newly launched product consists of Vector Apple Cinnamon Crunch Cereal, Special K Cinnamon Pecan Cereal, Maple Cinnamon Frosted Flakes Cereal, Krave Brownie Flavour Cereal, Kellogg's Cinnabon Cereal, Kashi Maple Waffle Crisp Cereal, Eggo Thick & Fluffy Waffles among others.

Competitive Landscape

The major global players in the market include: Kellogg Co., General Mills,Inc., The Kroger Co, The Hain Celestial Group, Inc., Organic India, EcoFarms Ltd., Cereal Partners Worldwide SA., Bagrrys India Ltd., B&G Foods Inc, and Nestle SA.

COVID-19 Impact Analysis:

On the other hand, at the initial stage of the COVID-19, the organic cereals market faced supply chain disruptions, particularly in the early stages of the pandemic. Delays in transportation and logistical challenges affected the availability of organic cereals. Farms and processing facilities experienced labor shortages due to health concerns and lockdowns. This impacted the harvesting and processing of organic cereals.

The closure of restaurants, cafes, and food service establishments led to reduced demand for organic cereals used in commercial food preparation. International trade faced disruptions due to border closures and trade restrictions. This impacted the import and export of organic cereals between countries.

After the first wave of the COVID-19 pandemic, the organic cereal market was impacted positively. The pandemic heightened consumer awareness regarding the importance of a healthy diet. Many individuals turned to organic and healthier food options, including organic cereals, to support their immune systems and overall well-being. With lockdowns and social distancing measures in place, there was a surge in online grocery shopping. Many consumers turned to e-commerce platforms to purchase organic cereals, leading to increased online sales and distribution.

Russia-Ukraine War Impact Analysis:

Ukraine and Russia are significant grain producers and exporters, including organic grains. Any disruptions in the region's agricultural supply chain due to conflict-related issues, such as transportation disruptions, could impact the availability of organic cereals globally. The conflict influenced global grain prices, including those of organic cereals. If Ukraine's or Russia's organic cereal exports are significantly affected, it may lead to price volatility in the organic cereals market, potentially causing price increases for consumers.

Geopolitical tensions lead to trade restrictions, tariffs, and disruptions in the export and import of organic cereals. Exporters and importers in affected regions may need to navigate changing regulations and logistics. Exchange rate fluctuations between the Russian ruble, Ukrainian hryvnia, and other major currencies impacted the cost of organic cereal imports and exports, affecting pricing and market dynamics.

By Type

• Wheat
• Rice
• Oat
• Corn
• Barley
• Millet
• Sorghum
• Others

By Application

• Breakfast
• Bakery
• Feed
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Specialty Stores
• E-Commerce

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On May 19, 2022, GUUD Modern Muesli launched a functional cereal line in the market. It consists of plant protein, omega fatty acid, prebiotics dietary fibers and superfruits. It is made from the nuts, grains, seeds and fruits. It is good for the gut health and brain health.
• On April 02, 2022, Nature's Path launched new children's cereal in the market. It is made from the whole oat and rice flour and sweetened with organic cane sugar. It contains 18 grams of whole grains in each 40-gram serving. The product is available for the sale on company website.
• On January 21, 2021, Nestle and Cereal partnered together to launched the organic cheerios line. These are organic cereals made from honey hoops and five organically grown whole grains and chocolate pieces.

Why Purchase the Report?

• To visualize the global organic cereals market segmentation based on type, application, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of organic cereals market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global organic cereals market report would provide approximately 61 tables, 64 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies