With a large number of small and large companies and an intense competitive landscape, the global market for flour has companies looking for ways of expanding across budding and promising regional markets for better revenue and growth opportunities, observes a recent market research report by Transparency Market Research. Companies are also proactively venturing into promising new market segments such as baking mixes and flavored flours to benefit from rising consumer interest in easy-to-make recipes.
Some of the leading companies in the market are ITC Limited., General Mills Inc., King Arthur Flour Company Inc., Hodgson Mill, ConAgra Foods Inc., Hindustan Unilever Limited, Ardent Mills Canada, Associated British Foods plc, and Archer Daniels Midland Company.
According to the report, the global flour market will expand at a CAGR of 4.3% from 2014 to 2020. If the numbers hold true, the market, which stood at US$198.57 bn in 2015, is anticipated to reach US$254.82 bn by 2020.
Europe Accounts for Dominant Revenue Share in Global Market
On the basis of geography, Europe represented the largest share in the market’s revenue pie in 2013. This can be attributed to the high per-capita consumption and increased average selling price (ASP) of a variety of flours. On the other hand, based on volume, Asia Pacific held the biggest share in the market the same year owing to reduction in average selling price of flour products and increased population density. On the basis of technology, the segment of dry milling saw the most preference and held a lion’s share in the overall market in 2013. The technology is also likely to remain the most preferred one over the report’s forecast period, attributed chiefly to its simplicity.
Rising Demand for High in Protein Flour to Help Market Pick Pace
The global flour market is majorly stimulated by the rising consumption of dough, expanding global population, increasing per capita income, and the shift in the taste preferences of consumers worldwide. Furthermore, the increase in consumer awareness about bakery products and the rise of the fast food industry has fuelled the global flour market. Additionally, the increasing demand for flour that is high in protein has led to a new opportunity for various flour millers to introduce new gluten-free substitutes to flour. These gluten-free alternatives include rice flour, maize flour, corn flour, and soya flour and their demand is predicted to increase rapidly in the forecast horizon.
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Rising Popularity of Value-added Bakery Products to Open Up new Growth Opportunities
The market could be negatively affected by factors such as the variable costs of some varieties of flour across different regional territories and the rising demand for gluten-free foods across the globe. On the other hand, vast advancements in milling process in the recent years has led to the emergence of product lines of gluten-free bakery products and baking mixes. Additionally, the increased popularity of value-added bakery industry in developed economies, especially in region such as Europe, could help open lucrative growth opportunities for companies operating in the global flour market.