The cornmeal market is expected to grow at a compound annual growth rate of 4.89% over the forecast period to reach a market size of US$927.144 million in 2025 from US$696.214 million in 2019. The cornmeal market is estimated to witness a robust growth primarily due to the growing popularity of plant-based food which is at the same time driven by the growing inclination of vegetarian and vegan diets which is gaining momentum in the majority of the developing economies and few emerging economies. The increasing awareness of consuming food products that lead to wellbeing and good health, the growing considerations about climate, environment as well as animal welfare are a few of the additional factors that are influencing this trend. The other factors are inclusive of but not limited to the growing incidence of lactose intolerance which is making consumers increase the share of food products that are derived from plants. Conversely, such consumer-based factors are facilitated by new product development and an upswing in at-home consumption due to the closure of food and beverage establishments because of lockdown measures enforced by various national governments. The new consumption trends are substantiated by the rising preference for functional food and the consequent response by food manufacturers not only as a means to cater to the growing consumer need but also as a means to raise the nutrition profile of the traditionally consumed staples as an investment, which is another development that is expected to drive the growth of the cornmeal market. Further cornmeal is being increasingly used by various food and beverage establishments. For instance, in March 2020, a fast-casual restaurant operating at 900 locations in 17 states across the USA, called Zaxby's headquartered in Athens, Georgia which is known for its chicken fingers, signature sauces,and wings had reportedly announced the comeback of Fried Pickles which are essentially thin slices of dill pickles coated in cornmeal. Moreover, in July 2020, it was reported that a new sandwich has been introduced by Woody’s Bar-B-Q located in Florida, the USA, at its 40th anniversary which used cornmeal-dusted bun.
Consumption trends that are increasingly accommodating the growing preference for functional food, as well as fast food and healthy snacking, are expected to partly drive the cornmeal market, in the next few years.For instance, in July 2019, it was reported that Frito-Lay has reportedly partnered with the fast-food chain in the US market to develop a signature sandwich featuring the cheese-flavored cornmeal snack which is paired with a Cheetos-flavored sauce. During the same month, it was announced that KFC would be serving a Cheetos Sandwich. In August 2019 it was reported that a Mexican multinational called Gruma had achieved significant sales growth after launching healthier products, Viz. tortilla-producing companies, low-carb and gluten-free tortillas, the growth of Mexican food restaurants. Founded in Nuevo León, Mexico, Gruma is acknowledged among Hispanics mainly due to the companies Maseca cornmeal brand. Considering the USA, as of July 2018, the proportion of the Hispanic population was to the tune of 59.9 million. This development has resulted in the people of Hispanic origin becoming the nation’s largest ethnic or racial minority, constituting 18.3% of the nation’s total population [Source: United States Census Bureau], which is expected to drive the demand for consumption of cornmeal-based products. Besides, the growing preference for breakfast cereals is also another factor that is expected to drive the cornmeal market growth in the next few years. This particularly stems from the rising trend of lifestyle changes accommodating increasing nutrition considerations of a growing pool of newer generations of customers in emerging economies, growing preference for more transparency in food sourcing and labeling, convenience, consuming low calorie and low carbohydrates and high fiber food, among others. Nevertheless, breakfast cereals are not restricted to breakfast hour they are increasingly being featured among all-day-dining options of various food and beverage establishments around the world.
Further, the growing bakery and confectionery consumption too is partly responsible for driving the cornmeal market during the coming years.This development is tangible with regards to the production of bakery and confectionery innovation increasing the number of urban home bakers, increasing availability of allergen-free variants; growing urbanization; expanding retail footprint, among others. As an effect of such development, the bakery premix segment is expected to host a substantial share facilitate the growth of the cornmeal market. Especially considering cornbread which has been around since the time of ancient Indians in the Americas and is still widely consumed. Also, in this regard, it should be noted that bakery premixes made out of cornmeal extend convenience to the foodservice industry due to the combination of ingredients and minimizing time required for production concomitantly reducing the number of tasks that are required for the entire day’s operation. An additional factor that is expected to drive the cornmeal market is the growing demand for on the go snacking. Further, with increasing time spent at home, due to COVID 19 lockdown measures, family members as well as single or unmarried individuals are increasingly participating in home banking activities and sharing the end-product over various social media platforms. Nevertheless, with nations slowly lifting the restrictions leading to the food and beverage establishments are becoming operational for a longer duration are resulting in a renewed demand for bakery premixes which in turn is poised to drive the demand for cornmeal during the next few years. Further, there’s a growing demand for exotic food products from consumers in emerging economies who are inclined to sample products made out of ingredients that haven’t been a part of traditional consumption. This has resulted in the foraying various players in the international. Moreover, the rising pool of millennials and the associated trend of consumption of food products that comprise healthy ingredients are also in part responsible for driving the cornmeal market.
Rapid urbanization that is taking place simultaneously with rural to urban migration is resulting in the adoption of new consumption trends which is expected to influence the cornmeal marketMoreover, convenience snacking is also another factor that has arisen from the aforesaid, which is in part responsible for increased consumption of confections and bakery products, among others. The growing household expenditure on processed food which has resulted from a rapid shift away from traditional food and beverage consumption is expected to drive the global bakery premix market growth. To provide a contextual reference, the following is being elucidated to substantiate the extent of urbanization. At present, most of the world population resides in urban areas. As of 2018, North America was the most urbanized region of the world, wherein the urban areas constituted 82% of the total population. This was followed by 81% of the population of Latin American and Caribbean which are concentrated in urban settlements and 74 % of the population of Europe that is concentrated in urban settlements. Additionally, the share of the world population living in urban areas is expected to reach 60% in 2030 from 55% in 2018. Besides, as of 2018, Africa and Asia represented the lowest levels of urbanization, however by 2030, urban settlements are projected to support 47 % of the population in Africa, 56 % in Asia, and 71 % in Oceania. Moreover, by 2050, the African urban population is expected to triple.
Frequently Asked Questions (FAQs)