Cereal Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The cereal ingredients market is projected to register a CAGR of 5.2% during the forecast period (2022-2027).

The cereal ingredients market witnessed positive growth during the COVID-19 pandemic, even with increased prices of cereals across the world. The Food and Agriculture Organization's Price Index Report indicates a 35% increase in the prices of cereals and cereal-related products. Instant food supplements like cereals ran out of stock across the markets from time to time as consumers' interest shifted toward instant meals. The major players offered new flavored cereals with nutritional choices like gluten-free and ingredients with more fiber content for better immune health.

This market mainly includes wheat, rice, barley, and oats, with insignificant shares. The nutritive quality of the ingredients drives the market. Also, the increasing demand for ready-to-eat products has been boosting the usage of these ingredients. Additionally, the growing demand for health-promoting benefits of organic cereals is a significant factor fueling the organic segment of the market. Apart from the food industries, the increasing demand from the livestock industry is also driving the market.

Research to confirm the nutritional benefits of the ingredients and developments such as fortification, genetic modification, and gene-nutrient interactions are playing an essential role in boosting the cereal ingredients market, in order to meet the requirements and preferences of the consumers to enhance the market growth further. For instance, fortification of white flour with folic acid has been proposed in the United Kingdom to decrease the rate of NTD, as stated by the British Nutrition Foundation. Also, the government initiated favorable policies regarding fortification regulations, which may further boost the market.

Scope of the Report

Cereal ingredients are products derived from corn, rice, wheat, oats, and barley. The cereal ingredients market has been segmented by ingredient type, which includes wheat, barley, rice, oats, and other ingredient types. Based on form, the market is segmented as puff, grit, and flakes. The report also covers market segmentation by application, which comprises the food and beverage segment that includes breakfast cereals, bakery products, and brewing. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. The report offers the market size and forecast values in (USD million) for all the above segments.

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Key Market Trends

Increase in Demand for Products with Health Benefits

The market for gluten-free cereal-based products has witnessed an increasing trend due to the rising risk of celiac disease (CD). For example, the prevalence of CD in the United States varies from 4.5% among first-degree relatives of CD-affected patients to 0.5%–1.0% in the general population and is increasing over time. A strict gluten-free diet is the only available treatment for CD; it relieves symptoms, achieves mucosal healing, and prevents disease complications. This is majorly driving the gluten-free sector of the market. Also, 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). These people have been ditching gluten without a celiac diagnosis in order to join the trend of gluten-free consumption.

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