Cereal Ingredients Market Forecasts to 2030 - Global Analysis By Type (Wheat, Rice, Barley, Corn, Oat and Other Types), Ingredient Type, Form, Distribution Channel, Application, End User and By Geography

According to Stratistics MRC, the Global Cereal Ingredients Market is accounted for $458.7 million in 2024 and is expected to reach $658.1 million by 2030 growing at a CAGR of 6.2% during the forecast period. Cereal ingredients refer to the components used in the production of cereals. These ingredients typically include grains such as wheat, rice, oats, and corn, which are processed and combined with sugars, flavorings, and other additives to create breakfast cereals. Additionally, cereal ingredients may also encompass dried fruits, nuts, and seeds that are mixed into the cereal blend to enhance taste, texture, and nutritional value. The composition of cereal ingredients varies widely depending on the specific type and brand of cereal being produced.

According to Mayo Clinic, 3.1 million Americans are shifting toward gluten-free diets, where 72% of them are classified as people without celiac disease avoiding gluten (PWAG).

Market Dynamics:

Driver:

Vegan and plant-based trends

The market has witnessed a notable shift towards vegan and plant-based trends. This shift is driven by increasing consumer awareness of health and sustainability. Manufacturers are incorporating ingredients like plant-based proteins, whole grains, and natural sweeteners to meet this demand. The emphasis is on creating nutritious and environmentally friendly cereal options, catering to a growing segment of health-conscious and ethically minded consumers.

Restraint:

Competition from alternative breakfast options

The market faces tough competition from alternative breakfast options like yogurt bowls, smoothies, and protein bars. These alternatives appeal to health-conscious consumers seeking convenience and nutrition. To stay competitive, cereal ingredient manufacturers must innovate by introducing healthier and more diverse product lines. Incorporating ancient grains, organic ingredients, and addressing dietary restrictions can attract a wider consumer base and counter the challenge posed by alternative breakfast choices.

Opportunity:

Health-conscious consumers

Health-conscious consumers are driving significant changes in the market. They prioritize natural, whole-grain, and organic ingredients, avoiding artificial additives and excess sugars. Demand is rising for cereals fortified with vitamins, minerals, and functional ingredients like probiotics or protein. Gluten-free and allergen-friendly options are also gaining traction among this demographic. Manufacturers are responding with innovative formulations that cater to these health-conscious preferences, reshaping the landscape of the market.

Threat:

Price fluctuations

The market witnesses periodic price fluctuations influenced by several factors. Changes in weather patterns, affecting crop yields, can impact ingredient availability and costs. Global economic conditions, trade policies, and currency exchange rates also contribute to price volatility. Consumer demand trends, health considerations, and innovations in processing techniques further influence pricing dynamics.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the market. Supply chain disruptions, labor shortages, and fluctuating consumer demand led to production challenges and increased costs. Changes in eating habits, such as more people dining at home, increased breakfast cereal sales but decreased restaurant service sales. These dynamic forced companies to innovate packaging, invest in digital platforms, and adapt marketing strategies to meet changing consumer behaviors and preferences, reshaping the landscape of the cereal ingredients market.

The barley segment is expected to be the largest during the forecast period

The barley segment is expected to be the largest during the forecast period due to its nutritional value and versatility. It is a rich source of fiber, vitamins, and minerals, making it a popular choice for health-conscious consumers. Barley is widely used in various cereal products such as breakfast cereals, granola bars, and snacks, contributing to its significant demand in the market. Its natural nutty flavor and ability to enhance texture further add to its appeal among manufacturers and consumers alike.

The flavors segment is expected to have the highest CAGR during the forecast period

The flavors segment is expected to have the highest CAGR during the forecast period. These flavors cater to a wide range of consumer preferences, including those seeking nostalgic tastes and others looking for adventurous and unique flavor experiences. The cereal industry continually evolves to introduce new and exciting flavor profiles, keeping consumers engaged and satisfied with a variety of choices.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by changing consumer preferences and health trends. Key players in this market include major cereal manufacturers, ingredient suppliers, and distributors. The demand for natural and organic ingredients is on the rise, influencing product formulations and marketing strategies. Additionally, innovations in processing technologies and sustainable sourcing practices are shaping the future of the cereal ingredients industry in the region.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. There is an increasing demand for healthier breakfast options among consumers in the region. Cereal products are seen as convenient and nutritious choices, driving their popularity. With growing awareness about health and wellness, consumers are opting for cereals that are fortified with vitamins, minerals, and other nutrients. This has led to a surge in demand for fortified cereal ingredients.

Key players in the market

Some of the key players in Cereal Ingredients market include Kellogg Company, General Mills,Nestle, PepsiCo, Associated British Foods , Archer Daniels Midland, Cargill, Bunge Limited, Conagra Brands, Kerry Group, Grain Millers, Nature's Path Foods, Honeyville, Inc., Hodgson Mill and TreeHouse Foods.

Key Developments:

In April 2024, General Mills has announced its collaboration with TXT. General Mills is releasing six different limited-edition TXT boxes, with each of the five members appearing on one of the brand's popular cereals.

In October 2023, General Mills, Walmart and Sam's Club announced a collaboration to help accelerate the adoption of regenerative agriculture on 600,000 acres in the U.S. by 2030.

Types Covered:

• Wheat
• Rice
• Barley
• Corn
• Oat
• Other Types

Ingredient Types Covered:

• Grains
• Sweeteners
• Flavors
• Texturizers
• Preservatives
• Other Ingredient Types

Forms Covered:

• Puff
• Flake
• Grits

Distribution Channels Covered:

• Supermarket
• Direct Sales
• Specialty Store
• Convenience Store
• E-Commerce

Applications Covered:

• Processed Cereal Food Products
• Hot Cereal
• Cold Cereal
• Other Applications

End Users Covered:

• Food and Beverage
• Animal Feed
• Biofuel
• Pharmaceutical
• Industrial
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances