PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1446339
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1446339
Global flour market reached a value of USD 223.4 billion in 2023 and is anticipated to reach USD 296.46 billion by 2031, projecting a CAGR of 3.6% during the forecast period 2024-2031. The market is experiencing remarkable growth, driven by changing lifestyles, the influence of social media and western culture, and a growing emphasis on dynamic culture.
The market is witnessing increasing demand for various types of flour. Key market players offer a wide range of options catering to different preferences of consumers, from wheat to almond, further fueling the market growth. The market is continuously expanding as the brands are continuously innovating and introducing new range of products to their existing product line.
For instance, in November 2023, King Arthur Baking Company, launched whole wheat flour blend which is a 100% regeneratively grown climate blend, which it developed for the very first time since its entry into the business. The launch was aimed to maintain and restore the health of the soil so that it holds the capability of cultivating more nutrient-dense grains. The newly launched whole wheat flour is a blend of multiple grains.
With the increasing demand for flour and introduction of new products comprising flour from distinct grains, the global flour market is anticipated to witness a rise during the forecast period.
Increased Health Consciousness Among the Consumers
Bread is a staple food in the world, including western, European, or Asian countries. In western countries, the all-purpose flour has been the prime raw material to produce bread since ages. Consumers have started to substitute the all-purpose flour with the wheat flour due of its underlying benefits such as greater fibre levels present in wheat flour, more nutrients, including iron, zinc, and vitamins, and lower glycaemic index which helps in regulating the blood sugar levels and prevents crashes and spikes.
Governments of different nations are also making efforts in boosting the growth for healthier flour options. For instance, Government of India launched Bharat Aatta Scheme in November 2023. As per the scheme, the wheat flour will be sold at prices as low as USD 0.33 per kg. The scheme was launched in the nation-wide to relief the consumers from the high prices. The wheat flour under the Bharat Atta scheme is being sold through cooperatives NAFED, Kendriya Bhandar and NCCF in the country through 800 mobile vans and 2,000-odd outlets spread across the country.
Technological Advancements in Flour Industry Drive the Growth
The flour mill industry is a prime industry that governs various other industries. It is responsible for the production of a wide variety of food items and fuels other industries. The population increase and spike in demand for food, provide a strong future for the flour market, but on the other hand, it presents some obstacles, including rising input costs, competition from imports, shortage of skilled labour, and low productivity. To tackle these challenges, various technological advancements are taking place in the industry to boost the production of flour market.
Some of the innovations are high-capacity machinery that can be used to build mills with greater capacity and same building volume, lowering production costs. Additionally, equipment that requires less maintenance, is easier to operate and shorten the duration of production stoppages.
Most of the improvements were in the creation of roller mill machines. The aerodynamic design of the chamber structure, which allows air circulation to maintain a low roller temperature, is one instance of modern innovation.
Moreover, Antares Plus roller mill which consists of sensors that measure the temperature of the rolls, further helps in the optimization of operational safety, minimizing stoppages, and reduce energy consumption, which makes the production more efficient and stable.
Asia-Pacific Holds Dominance in the Market
Wheat is the second most important staple grain in both China and India. As per National Library of Medicine, it was found that in 2019, the aggregate consumption of wheat in China was 96.4 million ton and in India it was 82.5 million ton. Collectively, their consumption exceeded 35% of the world's total wheat consumption in that year. NLM anticipated that in 2050, China's projected population will be 1,294 to 1,515 million, and in India, it is projected to be 1,489 to 1,793 million, which will again lead to an increase in the consumption demand for wheat by the two countries.
Wheat Flour Dominates the Market Share in Terms of Volume
Globally, wheat flour dominates the flour industry. Wheat is consumed in higher quantities over other flours because of its health benefits as it contains some essential nutrients like dietary fibres, protein and vitamins. It is a major source of energy that is great for a healthy lifestyle. It is processed into a flour which is used by different consumer segments to produce breads, pasta, and pastries on a large scale. Some of the top users of wheat flour in the world in 2022-2023 were China, European Union, India, Russia, and Australia. Wheat flour is nutritious and versatile and is largely produced and consumed around the world.
Wheat flour is a prime flour of the United Kingdom's diet. The ingredient makes about one-third of grocery products in supermarkets. To cater the expanding demand of Wheat Flour in the United Kingdom, the United Kingdom Flour Milling industry mills 6.2 million tonnes of wheat to produce about 5 million tonnes of wheat flour each year. The industry is considered as the largest single processor of wheat in the United Kingdom.
Key Players Landscape and Outlook
Global flour market features a competitive landscape with several key players. Some prominent companies include Cargill Incorporated, General Mills, Inc., and Archer Daniels Midland Company. These brands have established a strong presence in the market with a wide variety of flours catering to various consumer preferences. The outlook for these key players is positive, driven by the growing popularity of new varieties of flour worldwide. As the market expands, innovation in flour by type, category, and packaging will be pivotal for maintaining a competitive edge. Additionally, marketing strategies focus on attracting new segment of consumers and continuous product developments are crucial in shaping the market landscape and brand positioning.
Ardent Mills, the premier flour-milling company, announced the launch of its brand new certified gluten-free flour blends and Keto-friendly flour blends for the Canadian market on 25th April, 2022. The new launches included Gluten-free 1:1 All-Purpose Flour - Suited for retail bakeries, wholesale bakeries, and foodservice operators; Gluten-free Pizza Flour Blend - for foodservice and pizza chain operators to deliver fresh, great-tasting, gluten-free crusts, including thin, flatbread, and pan pizzas; Keto-Friendly Flour Blend - for bread and bakery manufacturers; Keto-Friendly Pizza Mix - for foodservice and pizza chain operators.
Apart from it, Ardent Mills, announced a successful acquisition of all the business assets of Firebird Artisan Mills Assets on 7th December 2021. The acquisition was aimed to integrate Ardent Mills' existing specialty ingredient and gluten-free solutions, providing additional supply chain assurance, and strengthen the capabilities in Ardent Mills' leading R&D, technical, food safety, and quality assurance teams.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work