U.S. Cereal Grain & Pulse Derivatives Market - Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Country: (U.S.)

The U.S. cereal grain & pulse derivatives market is witnessing substantial growth, driven by the increasing consumer demand for healthy, sustainable, and gluten-free products. In 2024, the market is valued at 5.84 billion and is projected to reach 9.52 billion by 2031, reflecting a compound annual growth rate (CAGR) of 7.20%. The market is characterized by a diverse range of products, with the whole/intact form of cereal grains & pulse derivatives playing a significant role in various applications.

U.S. Demand Analysis of Cereal Grain & Pulse Derivatives

The market has experienced steady growth, propelled by rising consumer awareness and preference for healthy food alternatives. Ancient grains such as quinoa, millets, and sorghum are gaining popularity due to their rich nutritional profiles. These grains, naturally gluten-free and packed with fiber, protein, and essential amino acids, are increasingly favored by food manufacturers looking to cater to health-conscious consumers. This trend has led to the inclusion of various label claims such as high-protein, high-fiber, and gluten-free on food products, further driving the market's expansion.

For centuries, cereal grains have been a staple in diets worldwide. The resurgence of interest in these grains, particularly within the natural food movement, reflects a broader shift toward healthier eating habits. Consumers are increasingly seeking out robust grains that align with their health and wellness goals, leading to a growing demand for cereal grain & pulse derivatives in various food products.

The U.S. market for these derivatives is expected to continue its upward trajectory, offering significant opportunities for growth in the coming years.

Why is Demand for Cereal Grain & Pulse Derivatives Rising across the U.S.?

Surging Demand for Gluten-free Products

The growing demand for gluten-free products is a key driver of the grain & pulse derivatives market in the United States. Gluten has been associated with various health issues, including intestinal damage, indigestion, and chronic diarrhea. As health consciousness rises among consumers, there is an increasing awareness of the benefits of gluten-free products. This shift in consumer preference is leading to a higher consumption of gluten-free flour varieties, such as sorghum flour, buckwheat flour, and pea & chickpea flour. The gluten-free flour segment is expanding rapidly, presenting significant growth opportunities for the market.

Increasing Consumer Preference for Nutritional and Sustainable Food Products

Consumers are gradually adopting nutritional and sustainable diets, driven by a growing awareness of what constitutes a healthy lifestyle. There is a noticeable shift from conventional food products to those that offer nutritional benefits and are produced sustainably. Cereal grains, known for their health benefits, including reducing the risk of diabetes, obesity, and cancer, are being recognized as environmentally friendly alternatives. In the food and beverage industry, grain ingredients are increasingly being used to enhance the nutritional profile of products, contributing to the market's growth.

'Made from Ancient Grains' Claim Influencing Sales of Food Products

Ancient grains, once vital to feeding early civilizations, are making a strong comeback as consumers seek healthier and more diverse food options. Unlike modern crops that have been selectively bred, ancient grains have remained largely unmodified, offering unique flavors, textures, and visual appeal. The growing interest in ancient grains is driving manufacturers to innovate and incorporate these grains into their product offerings. As consumers become more aware of the health benefits of ancient grains, the demand for food products made from these grains is expected to rise, providing significant growth opportunities for producers.

Factors Limiting Market Growth of Cereal Grain & Pulse Derivatives in the U.S.

Availability of Low-priced Gluten-free Alternatives to Cereal Grains

One of the challenges facing the cereal grain & pulse derivatives market is the price instability of grains, which can be influenced by various factors such as seasonal and climatic variations. These fluctuations in yield due to uneven rainfall patterns and other environmental factors can lead to significant variations in the prices of grains and pulses. Additionally, the availability of low-priced gluten-free alternatives, such as corn, poses a challenge to the market's growth. Corn, a staple crop in the U.S., is widely produced and holds a significant share in the overall flour market. Its lower price point and easy availability make it an attractive option for manufacturers of processed food products.

However, despite the competition from corn and other alternatives, the increasing awareness of the benefits of food products made from cereal grains and pulses is expected to continue driving demand for these derivatives.

Category-wise Insights

Flour Form of Cereal Grain & Pulse Derivatives

In the food processing industry, the flour form of cereal grains & pulses is highly valued for its ability to impart taste, texture, and aroma to finished products. These flours are also recognized as a major source of plant-based nutrition, making them a natural and healthy ingredient for various segments of the food and beverage industry. The market for cereal grain & pulse flour is poised for significant growth, driven by the increasing consumer demand for plant-based and gluten-free food products.

Source of Cereal Grain & Pulse Derivatives

Among the various sources of cereal grain & pulse derivatives, sorghum stands out as a versatile and drought-resistant cereal grain. Sorghum is used in a variety of applications, including sweeteners, animal feed, and ethanol production. Its adaptability and nutritional benefits make it a popular choice in the U.S. market, and its derivatives are expected to see substantial growth.

Competitive Analysis

Key manufacturers in the U.S. cereal grain & pulse derivatives market are actively pursuing strategies to expand their business and strengthen their market position. Strategic partnerships, acquisitions, and mergers are common approaches used to increase production capacity and enhance global reach. Companies are also investing in mills and smaller players in the cereal grain & pulses market to establish a strong foothold.

For instance, Ardent Mills has opened a state-of-the-art milling facility in Florida, aligning with the company's vision to achieve strategic growth by enhancing supply chain efficiency and product consistency. Similarly, J.R. Simplot Co. expanded its agricultural crop input and service offerings through the acquisition of Pinnacle Agriculture, positioning itself to serve a large number of farmers across North America.

Partnerships between ingredient providers and distributors are also playing a crucial role in the market. For example, Batory Foods and Ingredion Incorporated entered into a strategic distribution agreement, allowing customers in Southern California easier access to ingredient solutions and systems.

U.S. Cereal Grain & Pulse Derivatives Industry Research by Category

The U.S. cereal grain & pulse derivatives market is segmented based on form, source, application, and distribution channel.

By Form:

• Intact/Whole Grain & Pulse Derivatives
• Flour Grain & Pulse Derivatives

By Source:

• Millets
• Sorghum
• Buckwheat
• Oats
• Quinoa
• Lentils
• Peas
• Chickpeas

By Application:

• Food & Beverage Industry
• Meat Analogues
• Bakery & Confectionery
• RTE Products & Convenience Foods
• Beverages
• Other Processed Food
• Foodservice
• Retail/Household

By Distribution Channel:

• Business to Business
• Business to Consumer
• Hypermarkets/Supermarkets
• Convenience Stores
• Specialty Stores
• Online Retail

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