Organic Cereals Market

Global Organic Cereals Market Overview

The Organic Cereals Market growth rate is currently 5.32%. It’s expected to remain stable for the period that this report covers. The organic cereals industry value is projected to be USD 0.0361 Billion by 2032.

Organic cereals are made from a variety of grains. These include barley, oats, sorghum, and maize. People like to eat these cereals mainly because of their high nutritional content and value. For example., organic cereals are a good source of vitamins, especially Vitamin B, thiamine, folate, and niacin.

Grains are rich in fiber. People like this because it keeps them healthier. It also helps them live longer and stay regular (in terms of digestive issues and bowel movements!)

COVID-19 Analysis

COVID-19 was the novel virus that scare the world last year. What made it so feared was the fact that it affected different people differently. For example, while most people recovered from it fine, some people became seriously ill because of COVID-19 and had to be hospitalized. A small minority of the people who got it died because of it.

COVID-19 perplexed governments around the world. They followed the script from public health officials and medical researchers last year and implemented lockdowns and quarantines. These were temporary because they were ineffective. However, the effects of lockdowns and quarantines on businesses around the world were far from temporary. Many businesses found that they were forced out of business altogether because they either had to drastically scale back operations or temporarily shut down because of COVID-19.

Well, the companies in the global organic cereals market thrived. Demand for these cereals increased because people were staying in and had more time to eat a good and nutritious breakfast at home. They were attracted to organic cereals mainly because of their high nutritional value.

Market Dynamics

Drivers

Organic cereals are rich in vitamins that help the brain, heart, eyes, and nervous system function properly. These vitamins also keep hair and nails healthy and strong. People around the world are growing increasingly aware of that. That’s why they are wanting to eat organic cereals much more often. This is a major driver of organic cereals market growth.

The fact that many people around the world eat a bowl of cereal for breakfast and many more people around the world are joining this trend is also driving growth in the organic cereals market.

More people around the world are becoming health-conscious in general. They are willing to pay extra for organic foods. This is also driving growth in the global organic cereals market. So is the fact that more and more people around the world want to eat vegan foods.

As people get wealthier, they also get fatter and are at a greater risk of developing diabetes. Many people want to avoid both and so they are doing this by eating more organic cereals.

Opportunities

The fact that people are willing to pay a premium for organic and healthy foods is driving many in the organic cereals industry to invest heavily in research and development. The objective is to try to develop cereals that are fortified and enriched with various nutrients and vitamins.

Restraints

Organic cereals tend to be more expensive because of their nature of manufacture. This is one factor that will hold growth back for the time that this report covers.

Challenges

Perhaps the greatest challenge that companies in the organic cereals industry face lies in keeping the price point in the affordable range for the global masses while developing better quality cereals.

Cumulative Growth Analysis

The organic cereals market growth rate is currently 5.32%. It’s expected to remain stable for the time that this report covers. The organic cereals market value is projected to be USD 36,100 million by 2027.

Technology Analysis

Kellogg Company is a major American player in the global organic cereals market. It is an industry leader because it invested heavily in research and development. Thus, it was able to create a sustainable competitive advantage by developing and marketing superior cereals in comparison to the competition which it was able to sell at a higher price point.

Market Segmentations

By Source

This segment can be further grouped into the following sub-segments:

• Wheat
• Barley
• Oats
• Blended
• Others

By Category

This segment can be further divided into the following sub-segments:

• Convenient organic cereals
• Gluten-free organic cereals

By Distribution Channel

This segment can be further grouped into the following sub-segments:

• Store-based
• Non-store based

The store-based sub-segment can be sub-divided into the following groups:

• Supermarket
• Hypermarket
• Convenience stores
• Others

By Region

The global organic cereals market can be grouped into the following regions:

• North America
• The European Union
• Asia-Pacific
• The Rest of the World

The European Union consists of the following nations:

• The United Kingdom
• Germany
• Italy
• Spain
• France
• The rest of Europe

The North American region consists of the following nations:

• The United States of America
• Canada
• Mexico

The Asia-Pacific market consists of the following nations:

• China
• India
• Japan
• Australia
• New Zealand
• The rest of the Asia-Pacific region

The rest of the world consists of the following regions:

• South America
• The Middle East
• Africa

Regional Analysis

The North American region will have the largest organic cereals market size for the time period that this report covers. The reason for this is that the demand for organic foods is high in both the United States of America and Canada.

The North American region has a large population with a relatively large collective disposable income. This is because both the United States of America and Canada have strong middle classes (despite the recent decline in the American and Canadian economies and middle classes.) Thus, they can afford to buy these healthier and pricier cereals.

The Asia-Pacific region is projected to have the highest organic cereals market growth rate of all of the regions in the world for the time period that this report covers. The middle classes are increasing rapidly in this region and as they are becoming better educated, they are also becoming more health-conscious. These people are willing to pay a premium for healthier foods and cereals. These are some of the reasons why the demand for organic cereals has been increasing dramatically in the Asia-Pacific region.

The demand for organic cereals is increasing in the rest of the world because the populations in these parts of the world are steadily becoming wealthier as their national economies grow. Thus, they have more disposable and discretionary income which they are willing to spend on higher-priced but healthier and more nutritious foods.

Competitive Landscape

The global organic cereals market is highly competitive. The reasons why are because it’s a fairly lucrative market. The market has a high growth rate and there are few barriers to entry in the organic cereals market.

Companies are finding that they can stay competitive if they invest heavily in research and development. They can develop and market better products that will allow them to justify charging much more (for these products.) The companies can also develop a sustainable competitive advantage that will allow them to develop an ‘edge’ over the competition. They can also increase their chances of remaining financially viable in both the short and long term.

Mergers and acquisitions and entering strategic partnerships with other successful companies accomplish the same things that heavy investments in research and development do. Companies have more resources which they can use to do more innovative research and development. They can then develop cutting-edge and nutritious products which can be marketed better. The result is a greater organic cereals market share and the ability to enter new markets with ease.

The Kroger Company is a major American grocery store chain. It is a major player in the industry because it invested heavily in both research and development and marketing. Thus, it was able to develop superior products for which it could justify charging more for. This allowed it to develop a sustainable competitive advantage. The company was able to remain profitable and hence financially viable. This should continue for the time that this report covers.

List of Companies

• Kellogg Co. (US),
• General Mills, Inc. (US),
• The Kroger Co (US),
• The Hain Celestial Group, Inc (US),
• Organic India Pvt. Ltd. (India),
• EcoFarms Ltd. (India),
• Cereal Partners Worldwide S.A. (Switzerland),
• Nestlé S.A. (Switzerland), 
• Bagrrys India Ltd. (India),
• B&G Foods Inc. (US),
• Marico Limited (India),
• Pepsico, Inc. (US),
• Post Holdings Inc. (US),
• Medifast, Inc. (US), and
• The Jordans & Ryvita Company (UK)

Recent Developments

• Kellogg company partnered with Toram Africa to expand its presence in the African market a few years ago.
• Kellogg company recently acquired Mass Foods, a major Egyptian Cereal manufacturing company. The intent is to increase its presence in the Egyptian cereals market

Report Outlook

The organic cereals market is expected to register a CAGR of 5.32% from 2020 to 2027 and reach USD 36,100 Million by the end of 2027.

The Asia-Pacific region leads in terms of growth rate. That said, the North American market has the highest market share. What accounts for this is the fact that this region has a strong middle class with a relatively high purchasing power.