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07
Nov-2019
Things to consider about the Global Cereal Ingredients Market
The Global Cereal Ingredients market has been estimated at USD 755.6 Million in 2019 and is projected to reach USD 898.9 Million by 2024, at a CAGR of 3.53% during the forecast period from 2019 to 2024.
Cereal Ingredients Market Introduction:
Cereal crops, a source of energy for living beings and produced in vast quantities, are grown for their edible grain component. Cereals are a rich source of vitamins, minerals, fats and proteins. They are considered as staple crops. In some developing countries, ingredients such as rice, millet, maize and wheat are part of the daily diet. In developed countries, because of people's preference for fast foods and ready-to-eat foods, grain ingredients have a variable and moderate intake, but they play an essential role in daily diets.
Grain ingredients are mainly used in breakfast cereals (hot and cold breakfast cereals). They play an essential role in breakfast as they help maintain the flavor and nutritional quality of the food product. Some of the benefits of a regular dietary breakfast are improved memory, balanced levels of cholesterol and insulin, physical activity and low risk of obesity. The practice of skipping breakfast has been reduced, while per capita breakfast consumption has increased worldwide in recent years.
Growth:
Changes in eating habits, particularly in developing regions, are also expected to improve market demand over the forecast period. Conscious and healthy eating habits of consumers are moving towards the grain market. People are choosing healthy, nutritious foods instead of bread, pizzas and more. Increasing population and increasing demand for natural and nutritious meals for processed foods are expected to increase the growth of the global cereal ingredients market in the coming years. During the grain extrusion process, a significant disruption of the protein results in a deterioration of the quality of the grain ingredients. This factor should restrict the market during the forecast period. In addition, volatility in commodity prices is also expected to be a significant impediment to the growth of the global market.
The lifestyle of the urban population is more rapid than that of the rural community. The fast-paced lifestyle and the desire to stay fit attracts people to breakfast cereals. Conscious of the nutritional aspects of the ingredients used in various breakfast cereals, the urban population is more concerned with having a better breakfast with healthy ingredients. With increasing urbanization worldwide, this trend is expected to continue for a long time. According to the United Nations, the urban population is projected to grow from 3,400 million in 2009 to 6,300 million by 2050. The rise in health problems such as obesity has become one of the most challenging issues in the world.
Developments:
In November 2018, Kellogs announced the launch of its new HI cereal! Happy Inside composed of fibers, prebiotics and probiotics. This new product is specially designed to promote digestive well-being. It is available in three flavors of strawberry, crunchy blueberry with coconut and bold blueberry. This is very beneficial for people who want to add more prebiotics and probiotics to their diet and will also help them maintain their overall health.
In July 2018, DuPont Nutrition and Health announced the launch of its new Guardian Toco 30P antioxidant, which can be used in cereal-based products and breakfast cereals. It will be available in powder form and will help the manufacturer to add antioxidants to the products easily. This will also preserve the freshness of grains and be safer than synthetic antioxidants.
Market Dynamics:
The growing demand for cereals by the livestock industry, as well as the increase in cereal consumption as a commodity, is the driving force of the market. Besides, the rise in beer consumption has also led to the demand for cereals, such as barley and oats. One of the main factors hindering this market is the possibility of contamination of grain products by pests, rust, etc. The lack of research to improve grain quality also restricts the demand for grain ingredients.
Further improvements in the technique of improving cereal crops would create an opportunity for the market. Population growth, as well as the growing demand for natural and nutritious foods over processed foods, is expected to increase the growth of the global market in the coming years. During the grain extrusion process, a significant disruption of the protein results in a deterioration of the quality of the cereals. This factor should restrict the market during the forecast period. In addition, volatility in commodity prices is also expected to be a significant impediment to the growth of the global grain ingredients market.
Regional Analysis:
At the country level, there are several advanced segments of the grain-based ingredients market, depending on the production capacity and financial capacity of each country.
The Food and Agriculture Organization of the United Nations (FAO) says that China is the largest producer of grains in the world, with production and capacity increasing year after year. The United States is the second-largest producer of cereals, followed by India. Total cereal production in these three countries accounted for 46% of world production in 2013, creating a relatively robust market for grain ingredients in China, the United States and India. Russia, Brazil, France, Ukraine, Canada, Argentina and Germany are other critical markets for cereal ingredients, due to the vital grain production.
The growth of the cereal ingredients market also depends on the grain trade, imported or exported. Japan is the largest importer of cereals, according to the International Grain Council, followed by Egypt and Mexico. This makes these three countries potential markets for grain ingredients. Concerning exports, the United States, Canada and the European Union, as well as several Asian countries, are critical markets for grain ingredients.
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