Global Cereal Ingredients Market to be Propelled by Rapidly Growing Urban Population

Published On : Mar 31, 2015

Heightened health awareness and a rapidly growing global population fuel the overall demand from the global cereal ingredients market. Cold and hot breakfast cereals contain various cereal ingredients, which have a high nutritional value and engaging taste. Regular consumption of a nutritional breakfast offers several health benefits such as higher energy levels, low risk of developing obesity-related problems, balanced levels of insulin and cholesterol, and better memory. 

The dietary fad of skipping breakfast is reducing gradually and is being replaced by high per capita breakfast consumption. This is a prominent factor fuelling the global cereal ingredients market. Cereals are a highly preferred breakfast option these days, because of their low calorie content and high nutritional value. Barley, oats, rice, and wheat are a few of the commonly used ingredients used in breakfast cereals. The cereal ingredients market at present is characterized by heavy investment into research and development activities to develop newer ingredients. 

Rice and Wheat Dominate Cereal Ingredients Market

Type, application, and geography are the three parameters based on which the global cereal ingredients market is segmented. As mentioned earlier, the main cereal ingredients used in breakfast cereals are barley, corn, rice, wheat, and oats. These cereal ingredients are available in different forms: puffs, grits, chunks, and flakes. In 2013, wheat and rice cereal ingredients collectively held the highest market share.

The consistently surging demand for ready-to-eat and nutritious breakfast products is anticipated to increase the total demand for rice and wheat cereal ingredients in the forthcoming years. On the basis of application, the global cereal ingredients market is segmented into hot breakfast cereals and cold breakfast cereals. 

Obesity and Hectic Lifestyle to Drive Demand for Breakfast Cereals

Rising awareness about the importance of consuming healthy and nutritious foods can be attributed to the high incidence of lifestyle diseases. High prevalence of obesity amongst children is a major concern clouding the minds of parents these days. As a result, many are encouraging their children to consume breakfast cereals in place of a typical high-calorie breakfast. 

High preference for ready-to-eat breakfast cereals can be attributed to today’s hectic lifestyle, which leaves people with no time to prepare their meals. Much of the demand for cereals comes from the urban population, which is more inclined towards consuming healthier food products due to being more informed and affluent than people in developing regions.

High prices of packaging materials have an adverse impact on the overall cereal ingredients market. Commonly used packaging materials are plastic, corrugated box, and carton boards. 
Procurement of Palm Oil: A Market Restraint

From the regional perspective, the global cereal ingredients market is segmented into Asia, Europe, North America, and the Rest of the World. North America holds the highest share in the overall cereal ingredients market, followed by Europe and Asia. However, it is the Asia cereal ingredients market that will expand robustly during the forecast period. Urbanization is a significant factor that drives the overall cereal ingredients market. Latest U.N. reports indicate that by 2050, the urban population will have grown to 6.3 billion from 3.4 billion in 2009. 

Palm oil is a vital ingredient used extensively in the global cereal ingredients market. Since the cultivation of the same calls for a specific type of climate, palm plantations are limited to only a few areas all across the globe. This is a glaring challenge for manufacturers in the global cereals market, because palm oil cannot be procured that easily.

Some of the key companies operating in the global cereal ingredients market are SunOpta Inc, Bunge Limited, Cargill Inc., Archer Daniels Midland Company, and Associated British Food Plc.

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