Cereal Ingredients Market Size - By Type (Wheat, Rice, Barley, Oats) By Source (Organic, Conventional), By Form (Flakes, Puff), By Application (Food and Beverages, Animal Feed) & Forecast, 2024 – 2032

Cereal Ingredients Market Size

Cereal Ingredients Market size was valued at USD 432 million in 2023 and is anticipated to register a CAGR of over 4.2% between 2024 and 2032, owing to its versatile nature, nutritional value, and widespread cultivation. Wheat provides essential carbohydrates, fiber, and proteins, making it a staple ingredient in various cereal formulations. Its gluten content lends elasticity and structure to baked goods, ensuring desirable texture and mouthfeel in cereals.
 

Additionally, wheat's neutral flavor allows for easy blending with other ingredients, enhancing the overall taste profile of cereals. Moreover, its availability and relatively low cost compared to alternative grains further contribute to its prominence in the cereal industry.
 

In recent years, there has been a noticeable shift in consumer preferences towards healthier and more diverse cereal options. This trend has led to increased demand for gluten-free and whole grain alternatives, challenging the dominance of wheat-based cereals. Additionally, concerns about gluten intolerance and sensitivity have prompted consumers to seek alternative grains such as rice, oats, and quinoa.
 

Furthermore, the growing awareness of environmental sustainability has led to a surge in interest in ancient grains and alternative cereals that require fewer resources to cultivate. As a result, the market is witnessing a transformation, with companies investing in research and development to meet evolving consumer demands and preferences, thereby influencing the market towards more diverse and health-conscious offerings.
 

The cereal ingredients market faces increasing competition from alternative breakfast options such as yogurt and smoothies. These alternatives offer convenience, portability, and perceived health benefits, appealing to consumers seeking quick and nutritious breakfast choices. Yogurt has gained popularity due to its probiotic content and versatility in flavor combinations. Smoothies, on the other hand, offer a refreshing and customizable breakfast experience, often incorporating fruits, vegetables, and protein supplements.
 

As consumers prioritize health and wellness, they are opting for these alternatives over traditional cereals, which are sometimes perceived as high in sugar and processed ingredients. This shift in consumer preferences restrains the growth of the market, prompting manufacturers to innovate and diversify their product offerings to remain competitive in the evolving breakfast landscape.
 

Cereal Ingredients Market Trends

The cereal ingredients industry is experiencing a surge in demand for healthy and fortified cereal products. Consumers are increasingly prioritizing nutrition and seeking cereals enriched with vitamins, minerals, and other functional ingredients like probiotics and antioxidants. This trend reflects a growing awareness of the importance of breakfast in maintaining a balanced diet and overall well-being.
 

As a result, manufacturers are responding by reformulating their products to offer healthier options with reduced sugar, increased fiber, and added nutritional benefits. This shift towards health-conscious cereal choices is influencing the market dynamics, driving innovation, and prompting companies to invest in research and development to meet the evolving demands of health-conscious consumers.
 

Furthermore, the response to evolving consumer preferences, the cereal ingredients market has witnessed a surge in innovations across flavors, formulations, and packaging. Manufacturers are introducing exotic and unique flavor profiles, ranging from savory to sweet, to cater to diverse tastes and preferences. Moreover, there's a growing emphasis on healthier formulations, with an emphasis on reducing sugar content, incorporating whole grains, and fortifying cereals with vitamins and minerals.
 

Packaging innovations focus on convenience, sustainability, and freshness, with single-serve options, resealable pouches, and eco-friendly materials gaining traction. These advancements not only enhance the appeal of cereals but also reflect a broader trend towards health-conscious and eco-friendly consumer choices. As a result, innovations in flavors, formulations, and packaging are influencing the market by driving product differentiation, attracting new consumers, and sustaining growth in the competitive landscape.
 

Cereal Ingredients Market Analysis

Based on the type, the market is segmented into wheat, rice, barley, oats, and others. The wheat segment held the dominant market size of USD 128.76 million in 2023, due to its versatile applications and widespread acceptance among end-users. Wheat serves as a fundamental ingredient in a variety of cereal products, including flakes, biscuits, and ready-to-eat breakfast cereals. Its gluten content provides elasticity, ensuring desirable texture in baked goods and enhancing the overall sensory experience.
 

Furthermore, wheat-based cereals cater to a broad spectrum of end-users, from households to institutional buyers like hotels, restaurants, and cafeterias. The availability of wheat in different forms, such as whole wheat, refined flour, and bran, allows for flexibility in formulation to meet diverse consumer preferences. Additionally, wheat's relatively low cost compared to alternative grains further solidifies its dominance in the market.
 

Based on source, the market can be further segmented into organic and conventional. Organic segment accounted for 67% of the market share in 2023. Organic ingredients are dominating the cereal ingredients market due to increasing consumer preference for natural and sustainable food options. With growing concerns about pesticides, GMOs, and environmental impact, consumers are opting for organic cereals. Organic ingredients are widely used in various applications such as whole grain cereals, granola bars, and breakfast cereals targeting health-conscious individuals and families.
 

End users including health food stores, supermarkets, and online retailers are witnessing a surge in demand for organic cereal products. This dominance of organic ingredients reflects a broader shift towards clean label products and ethical consumption practices, influencing both manufacturers and retailers to prioritize organic offerings to meet consumer preferences and market trends.
 

Based on form, in the market, the segmentation based on form includes flakes, puff and others. Flakes dominate the cereal ingredients market due to their versatility, convenience, and consumer preferences. They offer a satisfying crunch and texture while providing a base for incorporating various flavors, grains, and nutritional additives. Flakes are easy to manufacture in large quantities, enabling efficient production processes for cereal manufacturers. Additionally, their flat, thin shape facilitates even distribution of milk or yogurt, enhancing the eating experience. As a result, flakes have become a staple in breakfast cereals worldwide, capturing a significant share of the market.
 

Based on application, the market categorized into food and beverages, animal feed, and others. Food and beverages dominate the cereal ingredients market due to the widespread consumption of breakfast cereals and cereal-based snacks. Cereals are versatile ingredients, offering nutritional benefits and flavor diversity, appealing to health-conscious consumers seeking convenience. Additionally, the market's growth is propelled by the demand for innovative cereal formulations, including gluten-free, organic, and fortified products, catering to diverse dietary preferences and wellness trends. The convenience and versatility of cereal ingredients make them a staple in the food and beverage industry, driving their prominence in the market.
 

North America cereal ingredients market generated a revenue of USD 111.48 million in 2023. Firstly, the region boasts a large population with a strong affinity for breakfast cereals, making it a lucrative market for cereal manufacturers. Additionally, North America has well-established distribution networks and retail channels, facilitating easy access to a wide variety of cereal products. Moreover, the region's advanced food processing technologies and innovation capabilities enable the production of diverse cereal ingredients to meet evolving consumer preferences.
 

Furthermore, the growing demand for healthier and organic cereal options aligns with the market trends prevalent in North America, driving further growth and dominance in the region. Lastly, the presence of major cereal companies headquartered in North America contributes to its leadership position in the market.
 

Cereal Ingredients Market Share

The key market players include ADM, Associated British Foods Plc, Bunge Limited, Limagrain group, Cargill collectively dominate the market with their extensive industry experience, innovative product offerings, and widespread global presence. ADM (Archer Daniels Midland) is a leading global provider of cereal ingredients, offering a wide range of products such as wheat flour, corn ingredients, and specialty ingredients for cereal formulations. With a strong focus on innovation and sustainability, ADM provides high-quality ingredients tailored to meet the diverse needs of cereal manufacturers worldwide, ensuring consistency, nutritional value, and taste in the final products.
 

Associated British Foods Plc is a multinational food processing and retail company that plays a significant role in the cereal ingredients market. With brands like Jordans and Dorset Cereals under its umbrella, ABF is known for its commitment to quality and innovation in cereal production. The company's diverse portfolio includes a wide range of cereal ingredients, catering to various consumer preferences and market segments.
 

Bunge Limited, a global agribusiness and food company, plays a significant role in the cereal ingredients market. With its extensive expertise in sourcing, processing, and distributing grains, Bunge supplies a wide range of cereal ingredients such as wheat, corn, and soy products to manufacturers in the food industry. Leveraging its robust supply chain and commitment to sustainability, Bunge continues to be a trusted partner for cereal ingredient solutions, meeting the diverse needs of customers worldwide.
 

Limagrain Group is a global leader in cereal ingredients, offering a wide range of innovative solutions for the food industry. With a focus on sustainability and quality, Limagrain specializes in developing cereal ingredients that cater to diverse consumer preferences and nutritional needs. Leveraging its expertise in breeding and agronomy, Limagrain ensures the traceability and reliability of its cereal ingredients, making it a trusted partner for food manufacturers worldwide. Cargill is a leading supplier of cereal ingredients, offering a diverse range of products including grains, sweeteners, and functional ingredients tailored for cereal formulations.
 

With a global presence and extensive expertise in agricultural sourcing and food processing, Cargill provides high-quality ingredients to meet the evolving needs of cereal manufacturers worldwide. Leveraging innovation and sustainability initiatives, Cargill plays a pivotal role in driving growth and innovation within the cereal ingredients market, further solidifying its position as a key player in the market.
 

These market leaders collectively shape the competitive landscape of the nitrogen gas market, driving innovation, setting industry standards, and meeting the evolving demands of customers worldwide. With their focus on research and development, technological advancements, and strategic partnerships, these companies continue to expand their market share and strengthen their foothold in key regions. Their relentless pursuit of excellence, coupled with their customer-centric approach, positions them as preferred suppliers of nitrogen gas, contributing significantly to the growth and development of the global construction industry.
 

Cereal Ingredients Market Companies

Major companies operating in the cereal ingredients industry include:

• ADM
• Associated British Foods Plc
• Bunge Limited
• Cargill Inc.
• Cll Foods
• General Mills
• Kellogg's
• RiceBran Technologies
• SunOpta Inc.
   

Cereal Ingredients Industry News

• In June 2021, General Mils invested USD 28 million to expand its cereal production plant in Ohio. The expansion includes building renovation and installing sophisticated equipment.
   
• In May 2021, Kellogg’s invested about USD 121 million to expand the pringles production facility in Poland. The production pant capacity was increased by 34% to produce up to 60,000 ton of pringles in a year. Pringles are made of potato flakes and corn starch.
   

The cereal ingredients market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Billion) (Kilo Tons) from 2018 to 2032, for the following segments:

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Market, By Type

• Wheat
• Rice
• Barley
• Oats
• Others

Market, By Source

• Organic
• Conventional

Market, By Form

• Flakes
• Puff
• Others

Market, By Application

• Food & beverages
• Breakfast Cereals
  • Breakfast Cereals
  • Backed Goods
  • Others
• Animal Feed
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA