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January 23, 2017

Steady growth in the flour market to 2020 is good news for Millers

Flour consumption is witnessing a steady growth across the globe owing to the rising demand for bakery and fast food products among different classes of consumers, according to a new report from Transparency Market Research.

The increasing number of cafes and fast food restaurants worldwide is driving the flour market. Moreover, the development of flour milling industry in the developing regions such as Asia Pacific and the Middle East and Africa is working in favor of the growth of the market. The growing population and decreasing flour prices along with the establishment of new flour mills are supporting the demand for flour in these regions, which in turn is fueling the overall market.

However, the market is adversely affected by the rising awareness regarding the health hazards of gluten. Due to high gluten content in wheat flour, consumers are shifting to its substitutes. The opportunity in the global flour market was pegged at US$198.57 bn in 2015 and is poised to reach US$254.82 bn by 2020, rising at a CAGR of 4.3% from 2014 to 2020.


Growing Uptake of Bread-based Fast Foods to Fuel Growth of Bread and Bakery Products Segment

Based on application, the bread and bakery products segment will continue to dominate until 2020, accounting for 37.77% of the overall market revenue. The increasing consumption of bread-based fast foods in emerging countries is augmenting the growth of the segment. The rising health awareness among people in different countries is leading to the increased demand for gluten-free brown bread flours, thereby contributing to the growth of the segment. On the other hand, the non-food application segment is anticipated to expand at a CAGR higher than any other segment during the forecast period.

On the basis of technology, dry milling will continue to command the leading share, representing 92.90% of the overall market revenue. Wide applications of dry technology among flour millers is driven by multiple factors, including less complex milling process, low-cost advantage, and compatibility with wheat flour milling process. The growing acceptance of non-gelatinized flour is also driving the adoption of dry technology among flour millers globally. The wet drilling technology will expand at a CAGR of 6.4% during the same period.


Europe to Lead Revenue Generation through 2020 Owing to Evolution of Value-added Processed Bakery Industry

While Europe will be the dominant regional market in terms of revenue throughout the forecast period, Asia Pacific will continue to be the leading volume contributor. In countries such as the U.K. and Germany, increase in domestic production of wheat for making bread has triggered the growth of the flour market in Europe. Evolution of the value-added processed bakery industry in the Netherlands, Italy, Germany and France among others is estimated to drive future growth of the region.

In Asia Pacific, the flour consumption is driven by the growing population, increasing consumer expenditure on staple food, rising disposable income, and the growing demand for fast food. Moreover, the increasing consumption of flour based noodles, breads, and other products is providing significant boost to the growth of the region. The Rest of the World market for flour is expected to exhibit a CAGR of 5.2% during the same period. The development of the retail bakery market in the Middle East is assisting the growth of the market. Moreover, the increasing wheat planting in Chile and other Latin American countries is leading to the rise in domestic wheat flour production output in this region.

Some of the leading players in the market are Archer Daniels Midland Company, Ardent Mills Canada, Associated British Foods plc, ConAgra Foods Inc., Hindustan Unilever Limited, General Mills Inc, Hodgson Mill., ITC Limited., White Wings, King Arthur Flour Company Inc., and Wilmar International Limited.


Read more HERE.
 

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine GFMT
which is published by Perendale Publishers Limited.


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