U.S. Largest Market for Whole Grain, High Fiber Foods

SAN JOSEA rising consumer interest in health and fitness conscious will help the global market for whole grain and high fiber foods reach $24 billion by 2015, according to a new market report from Global Industry Analysts Inc. The report suggests unhealthy lifestyles and poor dietary habits have heightened concerns about obesity, cardiovascular and other diseases, leading consumers to spurn processed foods.

The report, Whole Grain and High Fiber Foods: A Global Strategic Business Report" predicts the growing popularity of healthier, natural and fat-free whole grain/high fiber foods and baked products will provide the required growth impetus in the medium-to-long term.

The report provides a comprehensive review of industry and product overview, market trends and issues, product innovations, recent industry activity and profiles of 146 market players worldwide. Analysis and overview is provided for major geographic markets for product segments including cereals, baked food, snacks and others (includes pasta and flour).

According to the report, new U.S. Dietary Guidelines and the new MyPyramid food guidance system are expected to push up the sales of healthy food products, particularly those involving whole grains.

Key findings include:

Cereals tend to be the predominant choice of breakfast in the United States, the United Kingdom and Australia where the market is highly competitive with higher levels of expenditure on product promotions. About 35 percent of the global cereal product launches in the year 2009 claimed to be functional cereals with health benefits. Use 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. 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 United States and Europe, new product launches in the category were 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.

The global whole grain and high fiber foods market felt marginal impact from the sluggish economy. The overall market experienced slower growth rates during 2008 and 2009 compared to 2007. Bread withstood the recessionary impact fairly well with 2009 global bread products sales increasing by more than 5 percent over the previous year. Breakfast cereal also fared well and was preferred over other morning foods owing to the nutritional content and economical pricing. 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. The dominance 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 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 percent through 2015.