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.
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 Foods, Beverages and Bakery Items.
- 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 Revival of traditional foods, Cereal Groats market to expand 76% between 2024 and 2034.
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 Health Consciousness, and Technological Advancements in Food Processing
Consumer tastes are also changing towards food choices with a focus on nutrient rich options being popular now more than ever before in the market today. This has also put cereal groats in the spotlight as they contain the entire grain including germ and bran components too! Their health benefits like aiding digestion and lowering heart disease risk have also made them quite sought, after worldwide. Technological advancements in food processing are also fostering the cereal groats market growth. Improved milling techniques ensure maximum nutrient preservation making these grains an even healthier choice for consumers. Furthermore, advanced packaging methods provide longer shelf-life, reduce tampering risk, and ensure product safety, making cereal groats a preferred choice among consumers and suppliers alike.
The resurgence of time honored food items has also brought cereal groats back into the spotlight in the cooking realm recently. Cereal groats flexibility enables them to be incorporated into a range of dishes; from breakfast options such as porridge and pancakes to popular dinner choices like risotto and pilaf. This widespread application in meals has also contributed to its increasing popularity, in the market.
02
Restraint: Limitations in Production Capacity
In the realm of cereal grains market stands out the issue of production constraints greatly impacting theindustry'sability to keep up with the increasing desire for whole grain products. The existing infrastructure poses limits, to production capacity that manufacturers are struggling to overcome as they strive to expand output without compromising product excellence and safety measures. This not only hampers sales potential but also influences market trends through price variations that can influence consumer purchasing patterns.
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: Stiff Competition from Refined Grains
The market for cereal groats must contend with the persistent dominance of refined grains. Marketing claims touting the convenience and taste of refined grain products still hold considerable sway over consumers, particularly in emerging markets where awareness about the nutritional benefits of cereal groats is limited. This dominance of the refined grains sector has consistently rein in the potential growth of the cereal groats market, negatively affecting market demand and dynamics.
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
1
Raw Material Procurement
ADMCargill
2
Grain Processing
Bob's Red MillGeneral Mills
3
Product Development
NestleKellogg's
4
Distribution & Retail
WalmartCostco
Use Cases of Cereal Groats in Breakfast Foods & Beverages
Breakfast Foods : Refined cereal groats, especially oat and wheat groats, are widely used in breakfast foods. They offer extensive health benefits, including being high in fiber, and are a significant source of energy. Manufacturers such as Kelloggs and General Mills leverage these advantages to position their products for a growing health-conscious customer base.
Bakery Items : Bakery products are another region where cereal groats find extensive use. They form the core ingredient of baking essentials like bread, cakes, muffins, and biscuits. Wheat and rye groats are typically preferred in this sector for their finer texture and nutrient content. Industry leaders like Nestl and Unilever use these cereals groats to offer a combination of taste and health in their baked goods range.
Beverages : Also, groats, particularly barley and corn groats, are increasingly used in the production of beverages ranging from energy drinks to alcoholic liquors. They act as a naturally gluten-free base material and are known for their diverse flavor profiles. Key beverage industry players like The Coca-Cola Company and Carlsberg have incorporated these groats into their production lines.
Animal Feed : Last but not only least, cereal groats like barley and sorghum are utilized in the production of animal feed. This application benefits from the groats high nutrient content, supporting animal health and growth.
Recent Developments
The market for Cereal Groats has observed significant developments lately, with the industry progressively leaning towards healthier, more nutritionally dense options. These nutrient-rich whole grains, typically derived from oats, wheat, barley, or corn, have seen a revival due, in part, to their versatility and substantial health benefits.
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. This industry transition is expected to add $32 million in the industry revenue between 2024 and 2030.
02
Ecommerce Boom
The advent and expansion of ecommerce platforms has revolutionised the market for cereal groats. With the added convenience of online shopping, consumers easily explore and purchase a wider range of cereal groat varieties and brands. This access to a global market has exponentially increased demand and competition in the sector.