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Cereal Ingredients Market: Overview

Cereals and cereal ingredients form a vital part of human as well as livestock diet and the market for the same has been gaining ground over the years. Key cereal ingredients such as wheat, rice, maize, barley, and oats are rich sources of minerals, fats, proteins, vitamins, carbohydrates, and oils. In many developing countries, a majority of everyday sustenance depends on grains in the form of millet, wheat, rice, or maize. Here, the market for cereal ingredients holds immense scope for growth. In developed countries, on the other hand, the consumption of cereal ingredients is moderate. Nevertheless, thanks to the soaring consumption of breakfast cereals, the cereal ingredients market in these countries continues to report steady growth.

Cereal Ingredients Market: Trends and Opportunities

The market for cereal ingredients is primarily driven by the high consumption of cereals and grains as part of a staple diet and the growing demand in the livestock industry. The increasing consumption of beer across the globe has also resulted in the escalating demand for malting cereals such as oats and barley. A large market for breakfast cereals in North America, Europe, as well as several countries in Asia also translates into a steady demand for cereal ingredients. In contrast, the contamination and destruction of cereal crops by pests poses a major challenge for the cereal ingredients market. Moreover, the lack of research in the field of genomics to improve the quality of cereal crops also restricts the growth of this market.

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The global market for cereal ingredients can be geographically segmented into Asia Pacific, Europe, North America, and Rest of the World. Based on application, the market covers breakfast cereal, animal feed, bio-fuel, and brewing. By type, cereal ingredients are categorized into barley, oats, maize, sorghum, rice, and wheat.

Cereal Ingredients Market: Regional Outlook

On a country level, there are various leading segments of the cereal ingredients market, depending upon the production and trade capacities of each country.

The Food and Agriculture Organization of United Nations (FAO) states that China is the leading producer of grains in the world, with its production amount as well as capacity increasing with each passing year. The U.S. is the second biggest grain producer, followed by India. The total grain production of these three nations accounted for a massive 46% of the global production in 2013. This has resulted in a rather strong market for cereal ingredients in China, the U.S., and India. Other key markets for cereal ingredients, owing to significant grain production, include Russia, Brazil, France, Ukraine, Canada, Argentina, and Germany.

The growth of the cereal ingredients market also depends on the trade of grains, be it import or export. Japan is the largest importer of grains, according to the International Grains Council, and is followed by Egypt and Mexico. This makes these three countries prospective markets for cereal ingredients as well. As far as export is concerned, the U.S., Canada, and European Union, and several Asian countries are key markets for cereal ingredients.

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Cereal Ingredients Market: Vendor Landscape

Ricebran Technologies, Kerry Group Plc, Associated British Foods Plc, Bunge Limited, Archer Daniels Midland Company, Cargill Inc., Limagrain, Cereal Ingredients Inc., Sensoryeffects, and Sunopta Inc. are some of the major companies competing in the global cereal ingredients market. Research and development activities form a key part of the growth strategy of these companies as they look to develop new cereal ingredients and gain a stronger foothold in the market.