HS Code:
Prepared cereal products, classified under HS Code 1904, include a wide range of food items such as breakfast cereals, muesli, granola, and other processed grain-based products ready for consumption. This category encompasses products made from wheat, corn, oats, rice, and other cereals that have been cooked, puffed, flaked, or otherwise prepared. These products are staples in many diets worldwide, often consumed as convenient breakfast options or snacks. The category is significant in global trade due to the universal demand for convenient and nutritious food products, with trade influenced by regional dietary preferences, production capabilities, and health trends.
Total Trade Volume
USD 15.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 3.1 billion
20.4% of total trade of total trade
Increasing
USD 1.8 billion
11.8% of total trade of total trade
Stable
USD 1.5 billion
9.9% of total trade of total trade
Increasing
USD 1.2 billion
7.9% of total trade of total trade
Stable
USD 900 million
5.9% of total trade of total trade
Increasing
Average Rate
8.5%
Highest Rate
35% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU Single Market or USMCA)
Rising demand for healthy and organic cereals
Increased exports of gluten-free, low-sugar, and organic cereal products, particularly from North America and Europe to Asia-Pacific markets
2021-2022
Growth in plant-based and fortified products
Manufacturers are innovating with fortified and vegan-friendly cereals to cater to health-conscious consumers, boosting trade in niche markets
2020-2022
E-commerce and direct-to-consumer sales
Online platforms have facilitated smaller producers entering global markets, diversifying trade patterns and increasing competition
2021-2023
A new trade agreement reduced tariffs on prepared cereal products between the EU and the US, aiming to boost bilateral trade by 10% over the next five years.
June 2023
Expected to increase exports from major EU producers like Germany and France to the US market, potentially reshaping trade shares.
Countries like Japan and South Korea introduced stricter regulations on sugar content in breakfast cereals, requiring reformulation or relabeling for exporters.
March 2023
May temporarily slow trade to these markets as manufacturers adapt, but could favor producers of low-sugar and health-focused products.
Ongoing geopolitical tensions and climate impacts have disrupted grain supply chains, affecting the production and export of cereal products from key regions.
Throughout 2022-2023
Increased prices and reduced export volumes from major producers like Canada and the US, driving demand for alternative suppliers.