Cereals Market

Global Cereals Market Size

The size of the global cereals market was valued at USD 37.44 billion in 2023 and is expected to be worth USD 39.05 billion in 2024 and 54.69 Billion in 2032, growing at a CAGR of 4.3% from 2024 to 2032.

Cereals are foods highly fortified with vitamins, minerals, and other nutritional additives. It is considered the most important meal of the day because it helps to revitalize the body, keeping it active and productive until the next meal. The demand for a full breakfast is increasing due to busy schedules and the need to improve consumers' overall nutritional needs. In general, cereals are prepared when the grains are turned into flour, cooked, mixed with other ingredients, dried, and formed. Cereals are available in puffed, flaked, or crushed form. They also act as a good source of fiber, iron, zinc, and other minerals, folic acid that maintains cell formation, vitamins such as vitamin B and vitamin D, and calcium, thereby improving consumers' bone health. Cereal makers spend a lot on television commercials to promote the many health benefits of cereals for children, which is expected to drive the global Cereal market during the outlook period.

MARKET DRIVERS

The growth of the global cereals market is mainly due to the evolution of eating habits and the influence of Western culture on the eating habits of consumers, as it offers a practical solution for easily accessible foods that optimize ease of consumption without additional preparation. Also, consumers' preference for nutritious and healthy food on a regular basis is stimulating the market. In addition, strong growth in convenience stores that promotes brand visibility fuels the growth of the Cereal market. The increasing popularity of breakfast on the go, coupled with the growing demand for organic grains and increased health awareness among consumers, is one of the main trends that are accelerating the growth of the market. Common grains used in these cereals include oats, rice, barley, wheat, and corn. A few hot bowls of cereal like oatmeal contain no other ingredients, while other variations may include colors, yeasts, salts, minerals, vitamins, sweeteners, and food preservatives. Palm oil is an essential ingredient used in the processing stage. Some natural cereals can be sweetened with the help of concentrated fruit juices. A wide variety of flavors is often added, including cinnamon, chocolate, spice, and fruit flavors. Besides, essential vitamins and minerals are also added to replace the nutrients lost during cooking.

MARKET RESTRAINTS

The demand for Cereals is limited by the wide availability of alternatives. Most consumers prefer eggs, frozen waffles, sausages, puddings, smoothies, yogurt, and other healthier breakfasts that are made with fresh ingredients. In addition, the easier availability of convenient, affordable, and nutritious food options threatens the demand for grains. Emerging economies are witnessing a paradigm shift in customer purchasing behavior and eating habits. The rapid urbanization and growth of the middle-class population in these economies is causing a change in lifestyle and an increase in the demand for take-out food. Because cereals are considered to offer many health benefits and are easy to prepare, they are experiencing increased demand from consumers around the world. However, the market is stagnating due to consumers' equitable inclination towards traditional breakfast foods, which is holding back market growth.

REPORT COVERAGE

REGIONAL ANALYSIS

North America dominated the entire market in 2023, followed by Europe. The growing health disorders like diabetes, obesity, and others complement the growth of the region. Makers are introducing healthier variants to attract a large consumer base. Rapidly growing economies in Asia Pacific result in a burgeoning population base that engages in busy lifestyles. This, in turn, stimulates the demand for prepared meals, which favors the regional market. The growing demand for natural nutritional products due to increased consumer awareness of healthy lifestyles is slated to trigger demand for cereals in the APAC region during the foreseen period.

KEY MARKET PLAYERS

Pepsico, Inc., Marico Limited, Nestlé S.A, General Mills, Kellogg Company, Bagrrys India Ltd and B&G Foods Inc. are a few of the notable companies in the global cereals market.

RECENT HAPPENINGS IN THE MARKET 

• In February 2019, Post Holdings, Inc., St. Louis, made a deal with TreeHouse Foods, Inc to purchase the private label, ready-to-eat cereal business. The grain company generated revenue of $ 268 million in 2018. TreeHouse Foods acquired the R.-T.-E.
• The company called “TreeHouse Foods” has agreed to mutually agree with Post Holdings to cancel the formerly announced agreement to sell its ready-to-eat (RTE) grain business on Post.
• In January 2020, Post Holdings Inc., a consumer packaged company based in Brentwood, declared that it had concluded a deal with TreeHouse Foods Inc, following a complaint filed earlier this month passed by the Federal Trade Commission that opposes the agreement. Tree Brook, based in Oak Brook, Illinois, said that it had mutually agreed with Post to end the deal and will now put the business back on the market.

MARKET SEGMENTATION

This research report on the Global Cereals Market has been segmented and sub-segmented based on type, ingredient type, distribution channel, and region.    

By Type

• Hot cereals              
• Ready-to-eat cereals           

By Ingredient Type               

• Rice            
• Wheat       
• Corn           
• Barley        
• Others      

By Distribution Channel                         

• Hypermarkets and supermarkets 
• Independent retailers        
• Specialist retailers
• Convenience stores            
• Others      

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa