NEW YORK, Dec. 09, 2022 (GLOBE NEWSWIRE) -- A new report on the global cereal market has just been published by IndexBox, and here are some of the most interesting takeaways.
Cereal Market Outlook
The global cereal market was valued at $1.9 trillion in 2021 and is expected to grow at a CAGR of 5.2% from 2021 to 2030, IndexBox says in its latest report. It is expected to reach $3 trillion by 2030. The market is driven by the growing population and rising income levels, which have resulted in increased demand for processed and packaged food products.
Cereals are a staple food in many parts of the world and are consumed on a daily basis. They are rich in nutrients and provide numerous health benefits, making them an essential part of a balanced diet. The growing awareness of the importance of a healthy lifestyle is another key factor driving the demand for cereals.
With the world’s population projected to reach 9.7 billion by 2050, the demand for cereal is only expected to increase. And as more people become health-conscious and adopt healthier lifestyles, they are increasingly turning to cereal as a nutritious breakfast option.
The rising popularity of plant-based diets is another factor driving demand for cereal. As more people ditch animal products in favor of plant-based alternatives, the market for cereal is expected to grow even further.
The rise in population and income levels, as well as the changing food preferences of consumers, are the major factors driving the growth of the global cereal market. The growing health consciousness among people is also fuelling the demand for healthy and nutritious cereals.
The increase in trade barriers and tariffs on imported products are some of the challenges faced by manufacturers in the global cereal market. However, innovation and product development are expected to provide opportunities for market growth in the coming years.
Cereal Consumption by Region
The Asia-Pacific region is the largest market for cereals, accounting for more than 50% of the global demand. The region is also projected to be the fastest-growing market during the forecast period. The growing population and changing dietary habits are the major drivers for the growth of the cereal market in Asia-Pacific.
The North American region is the second-largest market for cereals and is projected to grow at a moderate pace during the forecast period. The US is the largest market in North America and is expected to grow at a CAGR of 3.5% during the forecast period. The growing health consciousness among consumers is one of the major drivers for the growth of the cereal market in North America.
The European region is projected to witness slow growth during the forecast period due to saturation in developed markets such as Germany, France, and Italy. However, Eastern European countries such as Poland and Russia are expected to witness significant growth during the forecast period.
Current State of Cereal Industry
The global cereal market is currently in a state of flux. A number of factors, including climate change, trade tensions, and shifting dietary preferences, are leaving the industry uncertain about its future.
In recent years, droughts and floods have become more frequent and intense, affecting crop yields around the world. This has led to higher prices for cereals, as farmers struggle to meet demand. At the same time, tariffs and other trade barriers are making it difficult for companies to source ingredients internationally. As a result, many brands are turning to alternative ingredients or looking for ways to produce cereals domestically.
Finally, changing dietary habits are also having an impact on the cereal market. More consumers are seeking out healthier options, such as grain-free or high-protein products. Others are simply tired of traditional breakfast options and looking for something new. As a result, cereal companies are scrambling to keep up with these trends and develop products that will appeal to today’s consumers.
Cereals Market by Distribution Channel
There are two main types of cereal sales channels: grocery stores and direct-to-consumer (DTC). Grocery store sales account for the majority of global cereal sales, followed by DTC.
Grocery stores are the most common type of retail outlet where cereal is sold. In developed countries, supermarkets and hypermarkets are the primary locations for purchasing cereal. In emerging markets, local grocery stores are the main source of cereal.
The top three global retailers – Walmart, Tesco, and Carrefour – all sell cereal in their stores. Other major retailers that sell cereal include Kroger, Costco, Safeway, Albertsons, Supervalu, Ahold Delhaize, and Lidl.
Cereal is also sold through DTC channels such as breakfast clubs and home delivery services. Breakfast clubs are groups of people who meet periodically to share breakfast foods, including cereal. Home delivery services bring cereal directly to consumers’ homes.
Cereal Market Challenge
Although the global cereal market is forecast to grow in the next few years, there are a number of challenges that could impact this growth.
One challenge is the increasing price of wheat, which is a key ingredient in many kinds of cereal. The price of wheat has been rising in recent years due to a number of factors, including weather conditions and increased demand from China. This has led to some cereal manufacturers increasing prices, which could limit growth in the market.
Another challenge facing the cereal market is sustainability. Many consumers are becoming more aware of the environmental impact of their food choices and are looking for products that have a lower carbon footprint. This could lead to some consumers switching from cereals to other breakfast options that are more sustainable.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Kellogg Company, General Mills, Inc., Nestle SA, Associated British Foods plc, and ConAgra Brands, Inc. PepsiCo, Inc., Kraft Heinz Company, Archer Daniels Midland Company, Bühler AG.
Sources
World - Cereal - Market Analysis, Forecast, Size, Trends and Insights
EU - Cereal - Market Analysis, Forecast, Size, Trends and Insights
Asia - Cereal - Market Analysis, Forecast, Size, Trends and Insights
US - Cereal - Market Analysis, Forecast, Size, Trends and Insights
