Cereal Ingredients Market size is estimated to reach $589.1 Million by 2025, growing at a CAGR of 3.39% during the forecast period 2020-2025. Cereal is a small, edible and starchy seed, used as food. Cereal grains are rich in vitamins, minerals, proteins, and fats. They are used to prepare highly nutritive breakfast products, which are beneficial for the development of individual’s health. Consumer switch over diet conscious and healthy eating habits is fuelling the demand of the cereal ingredients market. Besides, increase of disposable income along with changing food habits are factors that are set to drive the growth of the global market for the forecast period 2020-2025.
- Geographically, North America’s Cereal Ingredients market accounted for the highest revenue share in 2019 and it is poised to dominate during the forecast period 2020-2025 owing to the high demand.
- Cereal Ingredients based on type has liquid segment leading the market share in 2019.
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- Cost-effective cereal based food products with high nutritional are creating higher opportunities for the growth of market for the forecast period 2020-2025.
By Source – Segment Analysis
The global Cereal Ingredients Market based on type has wheat, rice, oat, corn, barley and others. The corn segment registers for the highest market share in 2019 and is set to continue for the forecast period (2020-2025). The segment is set to be the fastest growing with a CAGR of 4.1% during the forecast period 2020-2025. This is owing to characteristics like dietary properties and carbohydrates, which makes the Corn most preferred ones among the consumers. Besides, corn flakes, as breakfast is preferred globally over all the other grains, which is driving the market. Wheat, Oats and barley are set to increase revenue with healthy growth in the forecast period 2020-2025, owing to the presence of high amount of vitamins, minerals, proteins, and fats. Besides, Granola and muesli owing to their natural option with less sugar in making is driving the oats segment.
By Application – Segment Analysis
The Application segment of Cereal Ingredients Market has food & beverage, animal feed, bio fuel and others. The food & beverage segment registers for the highest market share in 2019 and is set to continue for the forecast period (2020-2025). Increase in consumption of breakfast cereal, and change in food habits of consumers globally are the main reasons owing to the increase in the market share of this segment. The market share of the animal feed segment is set to increase with highest CAGR during the forecast period 2020-2025. This growth is owing to the increase in usage of cereal ingredients for carrying high nutrient properties, which make them very suited for animal feed.
By Geography – Segment Analysis
The global Cereal Ingredients Market by geography had the dominant share in North America, in terms of revenue in 2019. North America holds largest market share of 39.1% of global market share. This is owing to increase in consumption of natural and nutritional food products. The market in Asia-Pacific is estimated to be the fastest growing CAGR owing to the improve in standard of life and disposable incomes of countries like China and India. On the other hand, Europe is also set to have healthy growth, owing to the increase in consumer demand for breakfast cereal.
Drivers – Cereal Ingredients Market
- Healthy Diet
The demand for Cereal Ingredients is driving forward owing to the increase in the consumption of healthy eating habits among the consumers. Cereals are major health and energy source with lot of proteins and carbohydrates that are acting as drivers for supporting the growth of the Cereal Ingredients market.
Challenges – Cereal Ingredients Market
- High Availability of Substitutes
The consumption of cereal ingredients is high, but owing to high availability of substitutes in the market, the growth of market is a challenge for the forecast period 2020-2025.
Cereal Ingredients Industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Cereal Ingredients Market. Key companies of this market are Kellogg NA Co., General Mills, The Kraft Heinz Company, Mondelz International, Tyson Foods, Inc, Cargill, Roquette Frères, Kerry Inc., Pecan Deluxe Candy Company, Kanegrade Ltd, Balchem Inc., Codrico. Hodgson Mill and others.
- In November 2018, Kellogg’s launched a new Hi series! Happy inside of fiber, prebiotics and probiotics. This new product is specially designed to support digestive health. It comes in three flavors: Strawberry, Coconut Crisp, and Coarse Blueberry. This is highly beneficial for those who add more prebiotics and probiotics to their diet and help maintain overall health.
- In July 2018, DuPont Nutrition and Health announced the launch of a new Guardian Toco 30P antioxidant that can be used in granola and breakfast cereal products. It comes in powder form and helps manufacturers quickly add antioxidants to their products. This also maintains the freshness of the grain and is safer than synthetic antioxidants