Cereal Ingredients Market Research Report By Form (Dry, Liquid, Premixes), By Functional Property (Emulsifiers, Stabilizers, Thickening Agents, Flavor Enhancers, Texturizers), By Source (Grains, Legumes, Starchy Roots, Seeds, Nuts), By Application (Cold Cereals, Hot Cereals, Breakfast Bars, Granola and Muesli, Baked Goods), By Organic/Non-Organic (Organic, Non-Organic) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Forecast to 2032

Global Cereal Ingredients Market Overview

Cereal Ingredients Market Size was estimated at 23.81 (USD Billion) in 2022. The Cereal Ingredients Market Industry is expected to grow from 24.61(USD Billion) in 2023 to 33.19 (USD Billion) by 2032. The Cereal Ingredients Market CAGR (growth rate) is expected to be around 3.38% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Cereal Ingredients Market Trends Highlighted

The cereal ingredients market is projected to showcase significant growth in the coming years. Key market drivers include the increasing demand for convenience foods and the growing health consciousness among consumers. Opportunities in the market lie in the development of innovative products and the expansion into emerging markets. Trends in the market include the growing popularity of plant-based ingredients and the demand for clean-label products. The market is expected to see a rise in demand for functional ingredients that provide health benefits, as well as an increase in the use of ancient grains and alternative grains. Furthermore, there is a growing focus on sustainability and environmental concerns, which is driving the demand for organic and non-GMO ingredients.

Cereal Ingredients Market Drivers

Rising Demand for Convenience Food

The cereal ingredients market is projected to witness substantial growth over the forecast period, primarily driven by the increasing demand for convenience food products. The hectic lifestyles and changing dietary habits of consumers are driving the demand for ready-to-eat and convenient food options. Cereal ingredients such as flour, starches, and sweeteners are extensively used in the production of processed and packaged foods, including cereals, bakery products, snacks, and beverages.The convenience and time-saving benefits offered by these products have significantly contributed to the growth of the cereal ingredients market. Moreover, the growing popularity of online food delivery and meal kits has further fueled the demand for convenient food options, which is expected to continue to drive the growth of the cereal ingredients market in the coming years. Leading players in the Cereal Ingredients Market Industry are constantly innovating and developing new products to meet the evolving demands of consumers, which is likely to boost the market growth further.

Health and Wellness Trend

The increase of health and wellness trends among consumers is another factor influencing positively the development of the cereal ingredients market. Contemporary consumers are more health-conscious than they have ever been before, and they are looking for food products capable of benefitting them rather than ruining their health. That is why cereal ingredients, such as whole grains, fiber, and antioxidants, are becoming more popular due to their assumed health effects.As it is rich in fiber, vitamins, and minerals, whole grain helps keep the digestive system clean and decrease the risk of developing a range of chronic diseases. Fiber promotes stable blood sugar, satiety, and overall gut health. In turn, antioxidants protect the body's cells from being damaged by free radicals, which increase the pace of natural aging and cause certain diseases. The ingredients attract health-conscious customers to the food products containing them, and the market for cereal ingredients grows.

Expansion of Food and Beverage Industry

Another factor that has a considerable impact on increasing the size of the cereal ingredients market is the growing food and beverage industry. This is promoted by the constantly increasing population, rising income, and fluctuating consumer food patterns. Thus, the broader food and beverage industry stimulates a higher demand for the ingredients that are used for the production of various foods and beverages, including cereal ingredients.In reality, they are highly relevant to the creation of many food and beverage goods, such as baked goods, cereals, snacks, and dairy edibles. Therefore, any tendencies toward continuing the food and beverage industry growth will lead to an increase in the dimension of the cereal ingredients market.

Cereal Ingredients Market Segment Insights

Cereal Ingredients Market Form Insights

The Cereal Ingredients Market is segmented based on form into dry, liquid, and premixes. The dry segment accounted for the highest market share in 2023 and is expected to continue to do so throughout the forecast period, primarily due to its extensive use in baked goods, cereals, and snacks, among others. Dry-form cereal ingredients include flour, starch, and bran, among other ingredients used to produce baked goods, pasta, and snacks. The liquid segment is anticipated to witness significant growth throughout the forecast period, and the increasing reliability of liquid ingredients in an array of beverages and other types of foods is expected to be the major factor for growth.Moreover, the advantages of liquid ingredients, such as ease of handling, storage, and transportation, make it a preferred choice for food manufacturers. The premixes segment is expected to grow at a moderate pace during the forecast period as consumers increasingly rely on convenience food products. The market growth is primarily characterized by the increasing consumer reliance on healthy and convenient food options, along with the increase in urbanization and disposable income levels.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Cereal Ingredients Market Functional Property Insights

The Cereal Ingredients Market segmentation by Functional Property includes Emulsifiers, Stabilizers, Thickening Agents, Flavor Enhancers, and Texturizers. Emulsifiers are expected to account for USD 4.6 Billion in 2023, growing at a CAGR of 3.05% to reach USD 5.48 Billion by 2032 due to its ability to prevent separation of immiscible liquids. Stabilizers are expected to reach USD 3.9 Billion by 2032, driven by increasing demand for clean labels and natural ingredients. The thickening Agents market is projected to be valued at USD 2.9 Billion by 2032, witnessing a CAGR of 3.51%, owing to its ability to enhance texture and mouthfeel.The flavor Enhancers market is estimated to reach USD 2.4 Billion by 2032, growing at a CAGR of 2.89% due to rising consumer preference for flavorful and convenient food products. The texturizers market is anticipated to be valued at USD 2.2 Billion by 2032, expanding at a CAGR of 3.21%, attributed to its ability to modify texture, viscosity, and consistency.

Cereal Ingredients Market Source Insights

Grains, legumes, starchy roots, seeds, and nuts are the key sources of cereal ingredients. Among these, grains hold the largest market share, accounting for over 50% of the Cereal Ingredients Market revenue in 2023. The high demand for grains can be attributed to their versatility and nutritional value. They are a rich source of carbohydrates, proteins, and dietary fiber, making them an essential component in various food products. Legumes, such as peas, lentils, and beans, are another important source of cereal ingredients owing to their high protein and fiber content.Starchy roots, such as potatoes and cassava, are also gaining popularity as a source of cereal ingredients due to their low cost and high starch content. Seeds and nuts, such as chia seeds, flaxseeds, and almonds, are increasingly being used in cereal products due to their nutritional benefits and unique flavors. The growing demand for plant-based and gluten-free food products is expected to drive the growth of the cereal ingredients market in the coming years.

Cereal Ingredients Market Application Insights

The application segment plays a crucial role in shaping the dynamics of the Cereal Ingredients Market. In 2023, the Cold Cereals segment held the largest market share, accounting for around 35.41% of the Cereal Ingredients Market revenue. The rising popularity of ready-to-eat breakfast options, particularly among consumers with busy lifestyles, is driving the growth of this segment. The increasing demand for convenience and the wide range of flavors and textures offered by cold cereals contribute to their popularity. The Hot Cereals segment is projected to witness a steady growth rate during the forecast period, owing to the increasing awareness of the health benefits associated with consuming hot cereals.These cereals are often perceived as a healthier alternative to cold cereals, as they contain higher amounts of fiber and nutrients. The growing trend towards healthy eating habits is fueling the demand for hot cereals. Breakfast Bars, another significant segment, are expected to exhibit a notable growth rate in the coming years. The convenience and portability of breakfast bars make them an ideal choice for consumers seeking a quick and nutritious breakfast or snack option. The increasing availability of breakfast bars in various flavors and formulations, including gluten-free and high-protein options, is catering to the diverse needs of consumers.The Granola and Muesli segment is projected to maintain a steady growth trajectory, driven by the growing popularity of natural and organic food products. Consumers are increasingly seeking breakfast options that are perceived as healthier and more natural, which is boosting the demand for granola and muesli. The versatility of these products, which can be consumed with milk, yogurt, or fruit, further contributes to their appeal. The Baked Goods segment is expected to experience moderate growth during the forecast period. The use of cereal ingredients in baked goods, such as cookies, cakes, and pastries, enhances their texture, flavor, and nutritional value.The growing demand for baked goods, particularly in developing economies, is anticipated to stimulate the growth of this segment.

Cereal Ingredients Market Organic/Non-Organic Insights

Organic cereal ingredients are gaining traction among health-conscious consumers due to the rising demand for natural and minimally processed food products. The Cereal Ingredients Market revenue for the organic segment is projected to reach $10.2 billion by 2024, exhibiting a steady growth rate of 4.5% from 2024 to 2032. This growth is driven by the increasing popularity of organic cereals, particularly in developed regions such as North America and Europe. Non-organic cereal ingredients still dominate the market, with a revenue of $24.61 billion in 2023, owing to their lower cost and wider availability.However, the demand for non-organic cereal ingredients is expected to face challenges from the growing preference for organic products, especially in the long run.

Cereal Ingredients Market Regional Insights

The Cereal Ingredients Market revenue is expected to reach USD 33.19 billion by 2032, growing at a CAGR of 3.38%, owing to the increasing demand for processed food products and the rising disposable income of consumers. Regionally, North America accounted for the largest share of the market in 2023 and is projected to maintain its dominance throughout the forecast period. This is attributed to the presence of well-established food and beverage industries, coupled with the growing health consciousness among consumers. Europe is another significant market for cereal ingredients, driven by the increasing popularity of convenience food products and the growing demand for gluten-free products.The APAC region is expected to witness the highest growth rate during the forecast period, owing to the rising population and the growing disposable income of consumers. South America and MEA are also expected to contribute to the growth of the cereal ingredients market, driven by the increasing demand for processed food products and the rising trend of urbanization.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Cereal Ingredients Market Key Players and Competitive Insights

Major players involved in the Cereal ingredient market continue to focus on gaining a competitive edge by expanding their reach and innovating their products based on dynamically evolving consumer requirements. Leading participants in the Cereal Ingredients Market have successfully enhanced their presence over the years by leveraging lucrative collaborative ventures, acquisitions, and joint ventures. The Cereal Ingredients Market is characterized by intense competition and the presence of a large number of small as well as major players.Ingredion Incorporated is one of the leading players in the Cereal ingredient market. Founded in 1906, Ingredion stimulates the food industry globally by providing ingredient solutions. The company's product range includes a variety of starches, sweeteners, and texturizers, and it is one of the top brands in the Cereal Ingredients Market. With over 60 sites across 40 countries, Ingredion focuses on ensuring food safety by offering high-class quality and safety standards. The company accentuates its commitment to sustainability and innovation as it continues to invest heavily in research and development.Archer Daniels Midland Company, or ADM, is one of the major players in the Cereal Ingredients Market. Founded in 1902, ADM is a paramount leader in agricultural commodities and food processing. ADM provides a wide spectrum of cereal ingredients such as flour, starches, and oils. Operating in more than 200 countries, ADM supplies leading companies with innovative and sustainable solutions. Focusing on constant improvement, ADM continues to invest heavily in the development of new product offerings.

Key Companies in the Cereal Ingredients Market Include

• The Kellogg Company


• Cargill


• Bunge Limited


• Tate Lyle


• Louis Dreyfus Company


• Barry Callebaut


• Olam International


• Ingredion Incorporated


• General Mills


• Associated British Foods


• Wilmar International Limited


• Cofco Corporation


• Archer Daniels Midland Company


• Kerry Group plc


• DuPont

Cereal Ingredients Market Industry Developments

The Cereal Ingredients Market is projected to reach USD 33.19 billion by 2032, exhibiting a CAGR of 3.38% during the forecast period (2024-2032). Rising health consciousness and the growing demand for fortified and functional food products are driving the market growth. The increasing prevalence of gluten intolerance and celiac disease has led to a surge in demand for gluten-free cereal ingredients, further propelling market expansion. Innovation in product offerings, such as high-protein and low-carb cereal ingredients, is expected to create lucrative growth opportunities for manufacturers. Strategic collaborations, mergers and acquisitions among key players are shaping the competitive landscape, with companies seeking to expand their product portfolios and geographical reach.

Cereal Ingredients Market Segmentation Insights

Cereal Ingredients Market Form Outlook

• Dry


• Liquid


• Premixes

Cereal Ingredients Market Functional Property Outlook

• Emulsifiers


• Stabilizers


• Thickening Agents


• Flavor Enhancers


• Texturizers

Cereal Ingredients Market Source Outlook

• Grains


• Legumes


• Starchy Roots


• Seeds


• Nuts

Cereal Ingredients Market Application Outlook

• Cold Cereals


• Hot Cereals


• Breakfast Bars


• Granola and Muesli


• Baked Goods

Cereal Ingredients Market Organic/Non-Organic Outlook

• Organic


• Non-Organic

Cereal Ingredients Market Regional Outlook

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  North America

  
  


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  Europe

  
  


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  South America

  
  


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  Asia-Pacific

  
  


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  Middle East and Africa