Wheat Germs Market

The global wheat germ market is projected to witness significant growth during the review period, exhibiting a CAGR of 3.68%. The market was estimated to be USD 991.29 million in 2022 and is expected to reach a value of USD 1,306.89 million by the end of the forecast period (2023-2030).

Based on product, the wheat germ flour segment accounted for a market share of 30.99% in 2022 and is expected to exhibit a CAGR of 3.71% during the forecast period owing to the wide usage of wheat germ flour in various baked goods such as bread, muffins, cookies as well as biscuits. Hence, the growing bakery industry across the globe is set to increase the sales of wheat germ flour which in turn would boost its market growth. For instance, according to Wantstats analysis, in 2023, the bread and bakery products industry will generate USD 1.25 trillion in revenue. The market is anticipated to expand by 7.59% yearly.

On the basis of category, the organic segment held a significant share in the wheat germ market in 2022 owing to the presence of major players across the region providing a wide range of organic wheat germ. As a part of this, Lekithos Inc., provides Lekithos organic wheat germ flakes which are usually a good source of folate, iron, protein, and dietary fibre and an exceptional source of manganese, phosphorus, thiamin, magnesium, and zinc. Products created with Lekithos organic plant proteins are always made with a single component and never with carriers, fillers, synthetic substances, additives, preservatives, or chemical solvents.

The food and beverages segment accounted for a market share of 39.63% in 2022 owing to the increasing government support to strengthen the food sector. For example, the Indian government's "Make in India" strategy focuses and promotes investment in the food processing sector. The government has also developed 134 cold chain projects and 18 mega food parks to increase the length of the food processing supply chain. These activities will probably be advantageous to food processing businesses. The food processing industry is also on a strong growth trajectory because of recent government measures, such as the USD 1.35 billion programme announced by Mrs. Nirmala Sitharaman, the finance minister, to support this industry.

The residential sector held a major share in the global wheat germ market during the forecast period owing to the growing population across the APAC region. As a part of this, according to IBEF, by 2030, India's urban population is expected to rise from 33% to over 40%, necessitating the construction of an additional 25 Mn affordable and midrange housing units.

Based on the distribution channel, the B2C segment accounted for a market share of 30.91% in 2022 and is expected to exhibit a CAGR of 3.49% in the upcoming years owing to the increased benefits provided by supermarkets and hypermarkets. For instance, a consumer has more options for the same product, which is an additional benefit. For instance, if an individual wants to buy wheat germ, a retail store clerk will give the customer one or two possibilities, however in a supermarket, an individual will have eight to ten options of different wheat germ brands, allowing customers to choose the product that best suits their needs and preferences.

The escalating demand of wheat germ from the cosmetic industry is set to boost its market growth. Wheat germ carrier oil softens and promotes skin flexibility while working to protect and moisturize the skin. The oil's anti-aging qualities enable the skin to lessen outward ageing indicators like wrinkles. The oil's numerous emollient characteristics help to soothe dry skin. As a part of this, according to Wantstats analysis, the beauty & personal care market's cosmetics section was expected to generate a total of USD 21.6 billion in global revenue between 2023 and 2027. In 2027, the income is anticipated to reach USD 125,409.14 million.

Furthermore, the increased demand among consumers for organic products or natural ingredients products owing to the increasing health benefits associated with its consumption, has increased its sales which in turn is another factor boosting its market growth. For example, according to Wantstats analysis, over the past 15 years, sales of organic food have consistently climbed, rising from USD 13.26 billion in 2005 to USD 57.5 billion in 2021. Sales increased by USD 6.43 billion between 2019 (USD 50.07 billion) and 2020 ($56.5 billion), the year with the largest annual increase, because of the pandemic-induced rise in health consciousness in 2020. In addition, because of health concerns, 76% of adult respondents stated they bought organic food. Even though these customers are unfamiliar with the term "organic," they generally grasp that organic goods are meant to be healthier than conventional ones. Convenience (22%) and environmental concerns (33%) were the next two most common justifications for purchasing organic food. Apart from this, the growing pharmaceutical sector may serve as an opportunity for market growth. However, the fluctuations in prices of raw materials may serve as a challenge for its market growth.