The global cereal ingredient market is anticipated to grow at a significant CAGR of around 4.9% during the forecast period. The growing demand for organic food drives the global cereal ingredient market. The cereal ingredients are becoming oraganic due to which it attracts the new customers that value the  commencing of the day with nutritious meal. Further, people have started consuming cereal snacks at any time of the day in place of a bag of chips.  This is due to increasing health concern owing to which  Limagrain Ingredients constantly adopts the Presco Organic range with different forms and densities from whole grains to flakes. Though there are various health benefits of cereal ingredients but availability of substitutes of cereal ingrdients is one of the restraining factor in the growth of cereal ingredients market. 

Apart from this, the change in eating habits in developeing countries is expected to improve the market demand during the forecast period. Cereal crop improvement techniques and genetic improvements to enhance the production and quality of the crops are some of the future market opportunities that can support driving the market growth. 

Impact of COVID-19 Pandemic on Global Cereal Ingredient Market

The COVID-19 pandemic has impacted almost every country. During COVID-19 there was a decline in the cereal ingredients market as the production was shut and due to restrictions on the trasportation there was a disturbed supply chain. However, COVID-19 has changed the way consumers plan their meals. People are more concerned for their health due to which the trend has shifted towards healthy food. Cereals include, oats corn and other grains which are healthy owing to which the market for cereal ingredients is expected to rise. The COVID-19 has generated opportunities for market players to provide healthy food ingredients post covid and promote sustainable and healthy eating. 

Segmental Outlook 

The global cereal ingredient market is segmented based on the ingredient type, and distribution channel. Based on the ingredient type, the market is sub-segmented into wheat, oats, barley, corn, millet, sorghum, and others. The consumption of oats is increasing over the years owing to which it holds the significant share in global cereal ingredients market. The oats are considered as healthy grains due to which there is rise in demand of oats among people who are concerned about health. Moreover, based on distribution channel, the market is sub-segmented into online and offline. Online segment is projected to hold most substantial share in the makret due to rapid growth in e-commerce business and availability of huge variety of cereals on online platforms with discounted offers. 

Global Cereal Ingredient  Market Share by Types, 2021 (%)

The Oats Holds the Significant Share in the Global Cereal Ingredient Market.

Oats are commonly consumed in the form of oatmeal or rolled oats. The oats have a range of potential health benefits. They are loaded with dietary fiber and carry the properties of lowering the cholesterol. The health benefits provided by oats include the reduced risk of coronery artery disease and colorectal cancer. Owing to such health benfits there is increased demand for oats in the market and companies are involved in bringing new products in market containing oats. For instance, in May 2021, General Mills Inc. planned to expand cereals to oatmeal category. The company expanded Big G ready to eat cereals to oatmeal category with the name of Big G Instant Oatmeals. These were introduces in different flavors. Hence, growing consumption of oats gives opportunities for growth to companies in cereal market. 

Regional Outlooks

The global cereal ingredient market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  North America dominated the market in 2020. The market growth in the region is attributed to the rising consumer preference towards healthy food products, high consumption of cereals and grains as part of a staple diet among US population, and growing food industry.

Global Cereal Ingredient  Market Growth, by Region 2022-2028

The Asia-Pacific Region is set to project fastest growth in the Global Cereal Ingredient Market.

The Aisa-Pacific region is expected to show fastest growth in global cereal ingredient market due to inclination of consumers towards ready-to-eat cereal breakfast .  As breakfast is considered as the most important meal of the day, cereal is considered as the best choice for breakfast among population. The rising adoption of healthier lifestyle, growing awareness about benefits of cereals, increasing disposable income level are the key factors augumenting the market growth in region.Countries like India and China are playing essential role in the growth of cereal ingredients market. For instance, in august 2021, Kelogg India expanded the range of its breakfast cereals by adding froot loops brand of cereals in India. During COVID-19 Indians started eating more snacks at home which resulted in growing opportunities for food companies to expand their portfolio in Indian market. 

Market Players Outlook

The major companies serving the global cereal ingredient market include Associated British Foods plc., Cargill, Incorporated., Cereal Byproducts Co., CII, Codrico Rotterdam B.V., General Mills Inc., Glanbia plc, Healthy Food Ingredients, LLC. And others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in March 2021 Cereal Ingredients Inc. planned to build a new 80,000-sqaure-foot manufacturing facility in St. Joseph with a new technology to expand product line of the company. Cereal Ingredients planned to invest $24 million in new business and it is expected that the consutruction will be completed in the first quarter of 2022. With this new production unit CII will be able to produce and supply more to meet the demand in the market owing to which the maket will grow. 

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global cereal ingredient market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.