Global Whole Grain and High Fiber Foods Market to Reach US$24 Billion by 2015

Cereals tend to be the predominant choice of breakfast in the US, UK and Australia. In these countries, the market is highly competitive with higher levels of expenditure on product promotions.

1/5/2011 --- Rising consumer awareness about the dietary significance of whole grain and high fiber foods is one of the major factors contributing to higher consumption of such foods. With several studies corroborating the harmful impact of diets involving high proportion of processed foods, consumers are awakening to the need for healthy food into their daily diet. There is progressively increasing consumer awareness about adoption of wholesome and healthy food habits to promote digestive and cardiovascular health, a dire necessity in today’s extremely hectic lifestyle. The shift in consumer perception and trends can be attributed to greater investments towards consumer education, intense promotional activities and availability of products with improved tastes and flavors.

The release of the new Dietary Guidelines in the US, as well as the MyPyramid food guidance system are expected to push up the sales of healthy food products, particularly those involving whole grains. The impact of these specifications is not just limited to the US, but is expected to significantly alter the consumption trends across the world. About 100 million Americans suffer from borderline or high cholesterol levels, further enhancing the significance of cholesterol lowering diet involving whole grain and fiber. The significance of healthy foods is gaining momentum, with growing health concerns pertaining to childhood obesity, geriatric nutrition and diabetes. The trend has compelled manufacturers to develop new and innovative products to keep pace with the burgeoning demand for such foods. Though both whole grains and fibers are vital for ensuring optimal health benefits for human beings, whole grains are being promoted extensively as they are also abundant in fiber content. Lately, consumers have shown a preference for natural breads and sandwiches comprising vitamins, whole grains and fiber.

Cereals tend to be the predominant choice of breakfast in the US, UK and Australia. In these countries, the market is highly competitive with higher levels of expenditure on product promotions. About 35% of the global cereal product launches in the year 2009 claimed to be functional cereals with health benefits. Usage of whole grains and reduction of fat and sugar levels were some of the most popular claims in the new products rolled out during the year. Similarly, inclusion of fruits in cereals was another widely prevalent trend, aiming to give a healthier image makeover to cereals. Despite decreased popularity of organic products in the US and Europe, new product launches in the category were apparently unaffected. New organic product launches in the cereals segment, doubled between the years 2007 and 2009. Blended flours are gaining popularity among consumers wishing to consume whole grains but averse to the taste, flavor and texture of whole grain flour or products.

There was marginal impact of the economic slowdown on global whole grain and high fiber foods market. The overall market experienced slower growth rates during 2008 and 2009 compared to 2007. Bread, a baked food considered an essential staple in most of the economies, withstood the recessionary impact fairly well. In 2009, global bread products sales (at retail level) increased by over 5% over 2008. Breakfast cereal was another category, which fared suitably during the crisis period, and was preferred over other morning foods owing to the nutritional content and economical pricing. Nevertheless, despite the increase in demand for cereals, manufacturers of branded breakfast cereals faced challenging times as consumers looking for value, traded down to less-expensive private-labels.

The United States constitutes the largest regional market for whole grain and high fiber foods, as stated by the new market research report on Whole Grain and High Fiber Foods. The dominance of the US market is likely to continue, backed by increased adoption of rice, wheat, barley as well as various specialty grains among consumers, nutritionists and dieticians. Europe and Asia-Pacific follow trail as the next major markets. Demand for whole grain and high fiber foods in Asia-Pacific is projected to grow at the overall fastest compound growth rate of 6.0% through 2015. The increasing health orientation among the upper and middle class consumers in the developing regions would drive the urban demand for value-added products.

By product, Cereals represents the largest segment, while Baked Food is poised to emerge as the fastest growing market over the analysis period. The increasing demand for natural bakery products with ingredients such as fiber and whole grain is expected to fuel the overall demand for baked food.

Key market participants profiled in the report include Cargill, Inc., Cereal Ingredients, Inc., ConAgra Foods, Inc., Creafill Fibers Corp., Fiberstar, Inc., Garuda International, Inc., Grupo Bimbo, S.A.B. de C.V., General Mills, Inc., Gilster-Mary Lee Corporation, Grain Millers, Inc., GTC Nutrition, Hodgson Mill, Inc., International Fiber Corporation, J. RETTENMAIER & SÖHNE GmbH + Co. KG, Kellogg Company, Kerry Group Plc, Kraft Foods, Inc., Malt-O-Meal Company, Matsutani America, Inc., MGP Ingredients, Inc., Nestlé S.A., New World Pasta Company, ORAFTI Group, PepsiCo, Inc., Quaker Oats Company, Ralcorp Holdings, Inc., Sara Lee Bakery Group, Sensus America LLC, Watson, Inc., among others.

The research report titled “Whole Grain and High Fiber Foods: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of industry and product overview, market trends and issues, product innovations, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as US, Europe, Asia-Pacific, and Rest of World. Market analytics are provided in terms of US$ (value) for product segments including Cereals, Baked Food, Snacks and Others (includes Pasta and Flour). The study also provides historic data for an insight into market evolution over the period 2000 through 2006.