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Cereal Groats Market

The market for Cereal Groats was estimated at $790 million in 2024; it is anticipated to increase to $1.11 billion by 2030, with projections indicating growth to around $1.47 billion by 2035.

Report ID:DS1901150
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Cereal Groats
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Report Summary
Market Data
Methodology
Table of Contents

Global Cereal Groats Market Outlook

Revenue, 2024

$790M

Forecast, 2034

$1.39B

CAGR, 2025 - 2034

5.8%

The Cereal Groats industry revenue is expected to be around $835.5 million in 2025 and expected to showcase growth with 5.8% CAGR between 2025 and 2034. The significant growth in the Cereal Groats market is driven by factors such as an increasing number of health conscious consumers worldwide seeking nutritious food choices and the growing trend towards sustainable farming methods gaining popularity. These groats are packed with nutrients and can be easily added to a variety of dishes making them a convenient option. As a result of these trends and benefits offered by Cereal Groats in terms of nutrition and versatility in cooking applications has cemented their position as a staple in food markets with their importance only getting stronger, over time.

Cereal groats are grains that have been cracked into small pieces and are praised for their rich fiber content and essential nutrients which make them a nutritious food choice enjoyed in various dishes like soups and salads as well, as bread and porridge to accommodate different dietary needs.

Cereal Groats market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034
Cereal Groats Market Outlook

Market Key Insights

  • The Cereal Groats market is projected to grow from $789.7 million in 2024 to $1.39 billion in 2034. This represents a CAGR of 5.8%, reflecting rising demand across Breakfast Cereals, Bakery Products, and Snacks.

  • Bob's Red Mill Natural Foods, Warco Fal, Glebe Farm are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Germany are the top markets within the Cereal Groats market and are expected to observe the growth CAGR of 3.8% to 5.6% between 2024 and 2030.

  • Emerging markets including Brazil, Indonesia and South Africa are expected to observe highest growth with CAGR ranging between 6.7% to 8.0%.

  • Transition like The Rise of Health Conscious Consumers has greater influence in U.S. and Germany market's value chain; and is expected to add $32 million of additional value to Cereal Groats industry revenue by 2030.

  • The Cereal Groats market is set to add $598 million between 2024 and 2034, with manufacturer targeting Bakery Products & Snacks Application projected to gain a larger market share.

  • With

    rising health consciousness, and

    Technological Advancements in Food Processing, Cereal Groats market to expand 76% between 2024 and 2034.

cereal groats market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Cereal Groats - Country Share Analysis

Opportunities in the Cereal Groats

The market for Cereal Groats seems to be growing in developing countries where a rising middle class is also becoming increasingly interested in food choices. Nations like India, China and Brazil with their growing populations and urban development offer opportunities for changes, in eating habits.

Growth Opportunities in North America and Europe

As a major hub for the consumption of cereal groats, North America has a diverse market landscape. Healthy lifestyle trends increase the demand for nutritious, whole-grain products, positioning cereal groats advantageously. Oatmeal, as a popular of cereal groat, showcases strong performance in the market due to its recognized health benefits and versatility. The US and Canada, leading countries within this region, provide ample opportunities for cereal groat manufacturers. However, companies face fierce competition, which dictates the need for innovation, unique positioning, and smart targeting of health-conscious consumers. Drivers propelling the North American market include increasing consumer awareness about the health benefits of whole grains and the expanding availability of diverse cereal groat varieties.
Europe possesses a strong appetite for cereal groats, especially in countries like the UK, France, and Germany. High demand exists particularly for organic, gluten-free, and non-GMO cereal groats, influenced by a pronounced shift toward cleaner eating habits. This market sees oat and wheat groats as front-runners, with buckwheat groats quickly gaining traction. The competition landscape is shaped by both regional and global players, displaying an innovative array of cereal groat offerings. Key market drivers include the robust retail network, increased inclination towards plant-based diets, and the proliferation of innovative, convenience-focused cereal groat products.

Market Dynamics and Supply Chain

01

Driver: Rising Consumer Preference for Whole Grains and Health-Conscious Food Products

The cereal groats market is also strongly driven by growing consumer demand for whole grains and health-focused food products. Whole grains, such as oat, wheat, and barley groats, are also rich in dietary fiber, vitamins, minerals, and antioxidants, which appeal to health-conscious individuals seeking better digestive health, sustained energy, and reduced risk of chronic diseases. At the same time, the increasing popularity of nutritious, functional, and clean-label foods in breakfast cereals, bakery goods, and snack bars has also fueled adoption of minimally processed groats. Food manufacturers are also leveraging groats’ natural nutritional profile to develop high-fiber cereals, multigrain breads, and wholesome snack products. Together, these trends expand the addressable market for groats while encouraging innovation in processing, flavoring, and product formulation, supporting revenue growth across retail and foodservice segments globally.
A key driver for the cereal groats market is also the advancement of processing technologies and product development innovations. Modern milling, steaming, flaking, and puffing techniques enhance the texture, shelf life, and convenience of groats for breakfast cereals, bakery items, and snacks. These innovations enable manufacturers to produce ready-to-eat or semi-processed groats that appeal to on-the-go consumers while retaining nutritional benefits. Additionally, technology allows incorporation of groats into functional foods and clean-label products, meeting rising consumer demand for healthy, minimally processed ingredients. Continuous improvements in processing efficiency and product versatility expand market reach and create opportunities for differentiated groat-based offerings.
02

Restraint: Limited Consumer Awareness and Preference for Refined Grains Slows Whole Grain Adoption

A significant restraint on the cereal groats market is limited consumer awareness and entrenched preference for refined grains in many regions. Despite nutritional benefits, many consumers still favor familiar refined cereals and flours, reducing demand for groats in everyday diets. For example, markets with strong cultural preferences for polished rice or refined wheat see slower penetration of groat‑based products, which can depress retail sales and discourage product innovation. This dynamic limits revenue growth for groat producers and food manufacturers, who must invest in education and marketing to shift consumption patterns toward whole‑grain alternatives.
03

Opportunity: Technological Innovations in Processing Techniques and Strategic Collaborations for Specialty Groats

With the progress of technology nowadays we are able to improve the nutritional quality of Cereal Groats through innovative processing methods. By adopting techniques that preserve more nutrients and reduce heat levels we could make Cereal Groats more appealing to health conscious individuals. This might lead to increased business opportunities in as well, as untapped markets.
Teaming up with specialty food producers brings about opportunities in the Cereal Groats industry! By working on new ideas, like pre packaged Cereal Groats or versions infused with probiotics to meet evolving consumer preferences and market trends effectively targeting both mass and premium customer groups.
04

Challenge: Higher Processing Costs and Supply Chain Constraints Increase Product Prices and Limit Competitiveness

Another key restraint is the relatively higher processing costs and supply chain inefficiencies associated with cereal groats. Groats require specialized milling, cleaning, and sometimes pre‑cooking steps, which can increase production costs compared with more standardized grains like refined wheat or corn. These added costs often translate into higher retail prices, making groat products less price competitive, especially in cost‑sensitive markets. Additionally, inadequate supply chain infrastructure in some regions leads to post‑harvest losses and quality variability, further constraining market expansion and limiting consistent product availability for food manufacturers and consumers.

Supply Chain Landscape

1

Raw Material Procurement

ADMCargill
2

Grain Processing

Bob's Red MillGeneral Mills
3

Product Development

NestleKellogg's
4

Distribution & Retail

WalmartCostco
Cereal Groats - Supply Chain

Use Cases of Cereal Groats in Breakfast Cereals & Snacks

Breakfast Cereals : In breakfast cereals, cereal groats such as oat groats and wheat groats serve as foundational whole‑grain ingredients for nutrient‑dense morning options like steel‑cut oats and muesli. These minimally processed groats retain bran, germ, and endosperm, delivering high dietary fiber, vitamins, and complex carbohydrates that support digestive health and sustained energy throughout the day for consumers seeking healthier breakfast choices. Oat groats are often steamed, cut, or flaked to produce ready‑to‑eat or hot cereals, providing a hearty, whole‑grain alternative to refined breakfast products that aligns with rising health and wellness trends.
Bakery Products : In bakery products, cereal groats like barley and wheat groats are milled or flaked to produce whole‑grain flours and inclusions for breads, muffins, cookies, and artisanal loaves. The presence of groats enhances texture, nutritional content, and fiber levels compared with refined grain formulations. Their balanced profile of insoluble and soluble fiber supports digestive health and appeals to health‑conscious consumers seeking better‑for‑you baked goods. Bakers also use groat‑derived flours to create multigrain and specialty products that differentiate portfolios and meet growing demand for wholesome bakery options.
Snacks : For snacks, cereal groats such as oat and millet groats are incorporated into granolas, crunchy clusters, and grain bars, adding whole‑grain heartiness and nutritional benefits like beta glucans and antioxidants. These groats provide chewiness and texture in savory and sweet snack applications, catering to consumers interested in high‑fiber, nutrient‑rich foods on the go. Snack manufacturers also toast or puff groats to create crispy inclusions that enhance flavor, mouthfeel, and satiety, especially in health‑oriented and functional snack segments that emphasize clean, whole‑grain ingredients.

Recent Developments

Recent developments in the cereal groats market show growing momentum in whole grain nutrition and functional food innovation as consumers seek high‑fiber, minimally processed foods. Rising demand for gluten‑free and heart‑healthy options has encouraged adoption of oat, barley, and wheat groats in breakfast cereals, snacks, and bakery products. A key trend is the ecommerce‑driven expansion, where online retail channels boost accessibility and variety, enabling smaller brands to reach niche markets and fueling competition and product diversification.

December 2024 : Cereal Groats, Inc. announced the successful launch of a new cereal groat product line, aiming at fortifying their market presence with healthier options to meet consumer demands.
November 2024 : Smith & Sons Milling Company acquired the smaller Kerns Grain & Groat mill, with plans to expand the production capabilities of cereal groats with better milling technologies.
October 2024 : Healthy Grains Corp, an emerging player in the cereal groats market, launched an sustainable initiative for sourcing and processing their cereal groats to decrease their carbon footprint.

Impact of Industry Transitions on the Cereal Groats Market

As a core segment of the Packaged & Processed F&B industry, the Cereal Groats market develops in line with broader industry shifts. Over recent years, transitions such as The Rise of Health Conscious Consumers and Ecommerce Boom have redefined priorities across the Packaged & Processed F&B sector, influencing how the Cereal Groats market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

The Rise of Health Conscious Consumers

Changing consumer preferences have significantly impacted the cereal groats market. The accelerating trend towards healthier lifestyles and food choices has led to a surge in the popularity of cereal groats. As rich sources of fibre and complex carbohydrates, cereal groats tap into consumer demand for nutrientdense, natural foods. From hot and cold breakfast cereal options to use in salads, stews and bread, their wideranging applications have seen a surge. This transition has also spurred innovation in the food manufacturing sector, with industry leaders investing heavily in R&D to create groatbased products that appeal to the healthconscious consumer.
02

Ecommerce Boom

The ecommerce boom is transforming the cereal groats market by providing consumers with convenient access to diverse grain varieties and brands from around the world. Online platforms allow health-conscious buyers to explore whole-grain oats, wheat, and barley groats, compare nutritional benefits, and purchase directly to their homes. This digital shift has expanded market reach for producers and retailers, increased competition, and driven innovation in packaging, product differentiation, and subscription-based offerings. Associated industries such as logistics, cold storage, and digital marketing have also benefited, as efficient delivery, inventory management, and online promotion become essential to meet growing consumer demand in the global groats sector.