Report Overview
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The global organic cereals market size was USD 36870 million in 2021. As per our research, the market is expected to reach USD 45620 million in 2028, exhibiting a CAGR of 2.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with organic cereals market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Organic cereals refer to breakfast cereals that are produced using organic farming methods. Organic farming is an agricultural approach that emphasizes the use of natural and sustainable practices to grow crops without the use of synthetic pesticides, herbicides, genetically modified organisms (GMOs), or synthetic fertilizers. These cereals are made from ingredients that are grown following these organic principles.
The organic cereals market had been experiencing significant growth due to increasing consumer awareness about the benefits of organic products and a growing interest in healthier eating habits. These cereals are often perceived as healthier options due to their lack of synthetic chemicals and GMOs.
COVID-19 Impact: Pandemic Hampered the Demand for Market
The pandemic led to disruptions in global supply chains due to lockdowns, transportation restrictions, and labor shortages. This could have affected the availability of organic cereals and their raw materials, potentially leading to supply shortages. With lockdowns and health concerns, consumer priorities and shopping behaviors shifted. Some consumers may have become more health-conscious and inclined towards purchasing organic and healthier food options, including organic cereal. However, economic uncertainties could have led others to prioritize cheaper alternatives. Lockdowns and restrictions on physical stores led to an increase in online shopping. Organic cereal brands and retailers had to adapt to the e-commerce trend to continue reaching their customers effectively. Adhering to social distancing and hygiene protocols might have slowed down production and distribution processes, leading to potential delays in restocking store shelves. International trade disruptions could have affected the export and import of organic cereal and related products, potentially affecting both producers and consumers in different regions.
Latest Trends
"Increasing Health Consciousness to Fuel Market Growth"
Consumers are becoming more health-conscious and seeking out organic cereal due to their perceived health benefits. These cereals are often perceived as free from synthetic pesticides and genetically modified organisms (GMOs), which aligns with the preferences of many health-conscious consumers. A growing number of consumers were considering the environmental and ethical aspects of their food choices. Organic farming practices, which typically focus on sustainable and environmentally friendly methods, appealed to this segment of consumers. The variety of organic cereal options was expanding. Brands were introducing new flavors, ingredients, and formulations to cater to different dietary preferences and requirements, including gluten-free, vegan, and low-sugar options. Consumers were becoming more attentive to ingredient lists, and there was an increasing demand for "clean label" products. Organic cereals, with their simpler ingredient lists and fewer synthetic additives, were positioned well to benefit from this trend.
Segmentation
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- By Type Analysis
According to type, the market can be segmented into wheat, rice, oat, corn, barley.
- By Application Analysis
Based on application, the market can be divided into supermarkets & hypermarkets, convenience stores, online stores, others.
Driving Factors
"Rising Consumer Demand for Natural and Organic Products to Drive Market Growth"
The increasing awareness of the importance of a healthy diet and lifestyle was driving consumers toward organic products, including cereals. Organic products are perceived as a healthier alternative to conventional options, as they are typically grown without synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). Growing concerns about environmental sustainability were pushing consumers to support products and practices that are more environmentally friendly.
"Growing Demand for Organic Farming Practices to Boost Market Growth "
Organic farming practices, which emphasize soil health, reduced chemical usage, and conservation, appealed to environmentally conscious consumers. Consumers were increasingly interested in knowing where their food comes from and how it's produced. Organic certification and labeling provided transparency and traceability, which helped build trust among consumers. These cereals are becoming more accessible through various distribution channels, including supermarkets, health food stores, online retailers, and even direct-to-consumer models. This expanded availability contributed to market growth. Government initiatives and regulations aimed at promoting organic farming practices and supporting the organic food industry were influencing the organic cereals market growth. In some cases, governments offered incentives to farmers who adopted organic farming methods.
Restraining Factors
"High Cost and Limited Accessibility to Restrict Market Growth "
Organic farming practices often require more labor and resources, leading to higher production costs. This can result in higher prices for organic cereals compared to conventional alternatives, which may limit consumer affordability. Organic products may not be as readily available in all regions, especially in rural or less developed areas. Limited distribution channels could restrict the market's expansion.
Regional Insights
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"Presence of Key Players in North America Anticipated to Drive Market Expansion "
North America holds leading position in organic cereals market share. The United States and Canada are major players in the market. The demand for organic products, including cereals, had been steadily increasing in these countries due to growing consumer awareness about health and sustainability.
Key Industry Players
"Adoption Innovative Strategies by Key Players Influencing Market Growth"
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.
The top key players in the market are Kellogg, General Mills, Kroger, Hain Celestial, Organic India, EcoFarms, Cereal Partners Worldwide. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.
List of Market Players Profiled
- Kellogg
- General Mills
- Kroger
- Hain Celestial
- Organic India
- EcoFarms
- Cereal Partners Worldwide
Report Coverage
This report examines an understanding of the Organic cereals market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.
Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.
This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 36870 Million in 2021 |
Market Size Value By |
US$ 45620 Million by 2028 |
Growth Rate |
CAGR of 2.6% from 2021 to 2028 |
Forecast Period |
2024-2032 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global organic cereals market expected to touch by 2028?
The global organic cereals market is expected to touch USD 45620 million by 2028.
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What CAGR is the organic cereals market expected to exhibit during 2022-2028?
The organic cereals market is expected to exhibit a CAGR of 2.6% over 2022-2028.
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Which are the driving factors of the organic cereals market?
Increasing health consciousness and advanced technology integration are the driving factors of the organic cereals market.
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Which are the top companies operating in the organic cereals market?
Kellogg, General Mills, Kroger, Hain Celestial, Organic India, EcoFarms, Cereal Partners Worldwide are the top companies operating in the organic cereals market.