Flour Market - Forecast(2024 - 2030)

Key Takeaways

• Geographically, the Asia-Pacific Flour Market accounted for the highest revenue share in 2021. The growth is owing to unforeseen production of rice, wheat, chickpea, and maize in Asian countries like India, China, and Indonesia, high population, a high number of vegetarians, and soaring GDP per capita incomes.
• Widescale urbanization, growing popularity of RTD food because of eventful lifestyles of people, extensive proliferation in the prevalence of chronic health complications, budding growth of the confectionery and bakery industry, and changing tastes and preferences of consumers are the factors said to be preeminent drivers driving the growth of Flour Market. rising concern over environmental calamities, sudden rise in inflation, and widening demand and supply gap because of tragic events like Covid-19 and the Russia-Ukraine conflict are said to reduce the market growth.

• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Flour Market report.

The Flour Market based on the application can be further segmented into food (confectionery, bakery, fast foods, and others), feed, and others. The food segment held the largest share in 2021. The growth is owing to the tremendous use of flour in the preparation of foods especially confectioneries and bakery items. It is used in the preparation of fluffy pancakes, chewy cookies, bread, flaky pie crusts, and plenty of other food items. Rice flour a significant role in gluten-free pasta, infant jars, soups, pate, battering and breading, and puffed cereals. Nevertheless, owing to the mild and nutty taste of chickpea, it has made its way into traditional Indian dishes such as fritters, samosas, and many other special desserts. Moreover, gram flour (chickpea) is taken into consideration as a natural thickening agent in curries. Furthermore, the food segment is estimated to be the fastest-growing with a CAGR of 5.6% over the forecast period 2022-2027. This growth is owing to the soaring demand for processed and RTE foods and the rising living standards of people in low-income countries.

Flour Market Segment Analysis-By Distribution channel

The Flour Market based on distribution channels can be further segmented into offline (supermarkets, hypermarkets, convenience stores, brick-and-mortar, and others), e-commerce services. The offline segment held the largest share in 2021. The growth is owing to several advantages of offline retail outlets such as they build up a personal touch between consumers and businesses. Therefore, consumers always love to shop on offline platforms. Moreover, they offer consumers the option to actually touch and feel the products at the time of purchase, therefore, consumers can find out concealed defects if any. Additionally, instant purchase and sales assistance features of offline retail facilities gravitate consumers toward them. Furthermore, in an attempt to tap the untouched potential, modern stores are finding their way into some pastoral areas too. The E-commerce segment is estimated to be the fastest-growing with a CAGR of 4.7% over the forecast period 2022-2027. This growth is owing to traveling restraints because of the rising trend of work-from-home jobs, rise in tech-friendly population, swift internet penetration in pastoral areas, and several conveniences associated with e-commerce purchases.

Flour Market Segment Analysis-By Geography

The Flour Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-pacific held the largest share with 42% of the overall market in 2021. The growth in this segment is owing to the factors such as the presence of the largest grain-producing countries like India, China, and Indonesia. Asia is known for overwhelming wheat cultivation which ensures a non-stop supply to the food industry. In 2020, China’s produced 134 million metric tons of wheat; whereas, India’s total wheat production stood at around 107 million metric tons. Nevertheless, China, India, Indonesia, and Bangladesh are the 4 largest rice producers in the world with a collective annual capacity of more than 330 million metric tons. Additionally, every year India produces nearly 8 million tonnes of garbanzo which is around 68-70% of total world production. Whereas, being the 2nd biggest producer, Australia has over 10% share in chickpea production. Moreover, Asia-pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to a rise in disposable income, accelerating population, bettering retail infrastructure, rise in internet users prompting e-commerce industry, and swift urbanization because of extensive migration of people from rural areas to urban centers.

Flour Market Drivers

Grain flour is a powerhouse of vitamins, minerals, and carbohydrates, therefore, extends several health benefits. Many health experts believe that proper intake of whole-grain flour can lower the risk of chronic illnesses like cancer. A report by the National Institute of Health (NIH), one thing common in 20 to 98 percent of incidences of heart failure is substandard thiamine status. Many studies suggest that a cup of flour can provide around 95.4 grams of carbohydrates, 12.9 grams of protein, 1 gram of thiamine, 42.4 mcg of selenium, and more than 200 mcg of folate. As a result, flour is becoming an inextricable part of people's diets worldwide. On another rising vegetarianism is providing fairgrounds for the flour market to flourish. According to a survey, nearly 20 to 22 percent of the total world population follows vegetarianism as of 2022.

The world population is rising astoundingly. In the last decade, the overall population has ascended from 6.9 billion to 7.9 billion, and the figure is anticipated to reach 9.7 billion by the year 2050. Therefore, the overall demand for food production has witnessed a sweeping jump. On another hand, the rising living standards of people in low-income countries like India, China, Indonesia, Bangladesh, and Others is another prominent factor behind the market expansion. China’s GDP per capita income was recorded at $12,551 in December last year. Similarly, Bangladesh's GDP per capita (PPP terms) was whirling around $5,733; whereas, Indian GDP per capita (PPP terms) was $7319. On another hand, the growing presence of modern retail outlets and growing internet users are casting votes in favor of the aforementioned market.

Flour Market Challenges

In a blind race for economic prosperity, countries across the globe are undermining the security of this planet by overexploiting environmental resources. Trees are being cut and rivers are being diverted from their natural courses. Owing to soil erosion stimulated by massive deforestation, the agricultural land is shrinking. Moreover, augmenting environmental temperature is resulting in severe floods and reducing the overall yield of crops. In addition to that, rising food prices because of the widening demand and supply gap, sky-rocketing prices of crude oil, and the sanctions imposed on the Russian Federation in the view of ongoing conflict are putting extra weight on consumers' pockets. On another hand, plummeting fertility of soil as organic content is contracting because of extensive fertilizers use. According to a Soil Health Survey, poor soil health is posing a creeping disaster in India. A survey claimed that more than 50% of Indian soil has a dearth of nitrogen and over 40% is lacking essential organic carbons and phosphorous.

Flour Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Flour market top 10 companies include-

1. Ardent Mills
2. King Arthur Flour Company
3. Associated British Foods Plc
4. Hindustan Unilever Ltd
5. Archer Daniels Midland Company
6. Hodgson Mill
7. ConAgra Foods Inc
8. Cargill
9. ITC Ltd
10. General Mills

Recent Developments

• On December 7, 2021, Colorado, United States-based renowned flour-milling company “Ardent Mills” announced the successful acquisition of all business assets of North Dakota, United States-based Firebird Artisan Mills (a miller known for its gluten-free grains). The transaction is aimed at bolstering the nutritional offerings portfolio of Ardent Mills.
• On November 16, 2021, Illinois, United States-based food ingredient supplier company "Batory Foods" announced the successful acquisition of US-based "DMH Ingredients", a company known for supplying various food and beverages ingredients. The financials of the deal were not revealed. However, the transaction is anticipated to strengthen the ingredients portfolio of Batory Foods.

• On April 13, 2020, Washington, United States-based Continental Mills (a firm known for its bakery products) announced that the company has successfully acquired an Effingham-based facility from a family-owned whole food grains firm “Hodgson Mills.” The acquisition of this 175,000-square-foot facility is anticipated to strengthen Continental’s bakery production capacity.

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