Flour Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, India, US, Germany, France - Size and Forecast 2024-2028

Flour Market Size 2024-2028

The flour market size is projected to increase by USD 41.16 billion, at a CAGR of 4.36% between 2023 and 2028. The bakery industry is experiencing significant growth due to increasing consumer preferences for artisanal and healthier baked goods. This trend is reflected in the expanding retail landscape, with new bakeries and specialty stores opening up to cater to this demand. Additionally, the global production of wheat-based items has increased, ensuring a steady supply of raw materials for bakeries worldwide. This growth is expected to continue, with market research predicting a compound annual growth rate of 3.5% from 2021 to 2026. Bakery products, from bread and pastries to cakes and pies, continue to be a staple in many cultures and dietary preferences, making this industry a lucrative and dynamic sector for investment.

Market Overview

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Market Dynamics and Customer Landscape

The Market encompasses a wide range of products including wheat flour, corn flour, and other specialty flours. Key players in this market include ConAgra Foods, General Mills, Hodgson Mills, and Grain Craft. The demand for baked goods, such as bread, cookies, noodles, and pasta, is a significant driving factor in the flour market. Grains, including wheat, are the primary source of flour. Whole grain foods and clean-label flours have gained popularity in recent years due to health consciousness and consumer preferences. The flour market also caters to the demand for fried food and fast food industries. Wheat flour is the most commonly used type of flour, followed by corn flour. The flour market is expected to grow due to increasing urbanization and changing dietary habits. The availability of various types of flours, including whole grain and clean-label flour, is fueling the growth of the market. Bakery items, including bread, cookies, and pastries, are major consumers of flour. The increasing demand for baked goods is driving the growth of the market. Additionally, the adoption of clean-label and whole-grain foods is expected to further boost the market's growth.

Key Market Driver

One of the key factors driving the flour market growth is the growing demand for bakery items. The global market, including wheat, corn, durum, rice, maize, oat, rye, and others, is experiencing growth due to several factors. Urban and modern lifestyles have led to an increase in demand for bread, bakery items, and fried food. Consumers in emerging economies, such as China and India, are adopting Western culture and developing a taste for sweet bakery products. Health concerns have resulted in the production of gluten-free and high-protein flours.

Moreover, food grains are sourced from commercial farmlands to serve as raw materials for various applications, such as animal feed, pet food, wafers, crackers and biscuits, non-bio and biomaterials, glue, roux, baby food, and processed food. The market is driven by the expanding urban population and the rising purchasing power of consumers. Flours are used in dry and wet technology processes, and companies like Ardent Mills are key players in this industry. Despite dietary concerns and contamination issues, the market for flours continues to grow. Hence, such factors are expected to positively impact the market which in turn will drive the global market during the forecast period.

Significant Market Trends 

A key factor shaping the market growth is the increasing demand for organic and gluten-free bakery products. The market in the bakery industry is experiencing a shift towards healthier options. Consumers, particularly those with dietary concerns and health concerns, prefer wheat flours that are organic and free from gluten. This trend is influencing the production of bread and bakery items, leading to an increased demand for specialized flours such as corn flour, rice, maize, oat flour, rye flour, and durum flour. Urban and modern lifestyles have contributed to the popularity of fast food and fried food. However, contamination concerns and the desire for natural ingredients have led to a growing preference for non-GMO flours. These flours are used in various applications, including wafers, crackers and biscuits, and in the production of biomaterials like glue and roux.

Further, commercial farmlands produce the raw materials for these flours. However, the high cost of manufacturing and raw materials makes organic flours more expensive than their conventional counterparts. Despite this, the demand for organic flours continues to grow due to their perceived health benefits and taste preferences. Animal feed and pet food industries also utilize flours, while processed food manufacturers use both dry and wet technology to produce a wide range of products. Ardent Mills and other leading producers are meeting this demand by offering a diverse range to cater to various consumer preferences. Therefore it is expected to drive the market growth during the forecast period.

Major Market Challenge

High manufacturing and production costs associated with the fermentation process of wheat flour are one of the key challenges hindering the market growth. In the food industry, various types, including wheat, are essential components for producing baked goods such as bread and bakery items. Fermented wheat flour, in particular, offers high fiber and nutritional value. However, its production comes with significant costs due to the lengthy fermentation process, which can range from several hours to days. This time-consuming stage necessitates monitoring temperature and humidity levels to ensure proper fermentation.

Besides, wheat flours other types like corn flour, durum flour, rice, maize, oat flour, rye flour, and even animal feed and pet food, are widely used in various industries. These flours cater to diverse consumer preferences and dietary concerns, including gluten-free and high-taste options. Fast food restaurants and urban populations increasingly demand processed foods, leading to a growing market for flours. Modern lifestyle and health concerns have influenced the flour market, driving innovation in dry and wet technology production methods. Companies like Ardent Mills and manufacturers of wafers, crackers, and biscuits utilize these technologies to cater to the diverse needs of consumers. Additionally, flours are used in non-food applications, such as biomaterials, glue, roux, and baby food production. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.

Market Segmentation

By Type

The wheat segment is estimated to witness significant growth during the forecast period. Wheat flour is a crucial ingredient in the production of various bakery items, including bread. The global market for flours, including wheat, corn, durum, rice, maize, oat, rye, and others, is driven by the increasing consumption of baked goods worldwide. This trend is influenced by urban and modern lifestyles, leading to a higher demand for bread, cakes, pastries, and other bakery products. Additionally, the popularity of home-baking and the growth of the baking industry further boost the demand for wheat flour. Fermented and organic wheat flour is gaining popularity among health-conscious consumers, particularly those with dietary concerns or health issues like diabetes.

The wheat segment was the largest segment and was valued at USD 125.13 billion in 2018.

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Corn flour is widely used in the production of fried food and fast food, while rice, maize, and other flours are used in various applications, including animal feed and pet food. Flours are also used in the production of wafers, crackers, biscuits, and other non-baked products. Biomaterials, such as glue and roux, are derived from flours, and they are used in various industries, including baby food production. The market utilizes both dry and wet technology in its production processes. Major players in the market include Ardent Mills, Processed food manufacturers, and urban population. Contamination of food grains is a significant concern in the industry, and commercial farmlands are closely monitored to ensure the quality and safety of raw materials. Flours are also used in the production of processed food and various other applications.

Key Regions

APAC is estimated to contribute 42% to the growth of the global market during the forecast period.

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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Market in APAC is experiencing significant growth, driven by the working population's increasing demand for cereal-based foods and convenient options. Grains, including wheat, rice, maize, soya, and others, are the primary sources. Key players in the market include ConAgra Foods, General Mills, Hodgson Mills, and Grain Craft. Consumers prioritize fiber-rich, low-sugar, and low-calorie foods. The millennial generation's spending on food and their diverse tastes and preferences fuel new product innovation. Value-added flours, such as rice, maize, soya, flavored, and clean-label, are gaining popularity. China, India, the Philippines, Thailand, and Vietnam are significant contributors to the market's growth. The bakery industry, pet food industry, bio-plastic production, and glue production are key end-users. E-commerce platforms facilitate the sale of baked goods, including cakes, pastries, biscuits, cookies, noodles, and pasta. Key driving factors include the rising demand for baked goods, fiber-rich foods, and clean-label products. Additionally, the growing prevalence of celiac disease necessitates the production of refined wheat flour and whole grain alternatives. Segmentation includes refined wheat flour, noodles and pasta, and other specialty flours. Hence, such factors are expected to drive the market growth in the region during the forecast period.

Key Flour Market Companies Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering - Archer Daniels Midland Co: The company offers flour such as wheat flour, corn flour, and multi-grain flour, providing a diverse range of options for different applications.
• Key Offering - Ardent Mills LLC: The company offers flour such as all-purpose flour, whole wheat flour, and specialty flours for various baking and cooking needs.
• Key Offering - Bunge Ltd: The company offers flour such as premium wheat flour and baking mixes, committed to delivering excellence in the baking industry.

The flour market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Associated British Foods Plc
• Bay State Milling Co.
• Burapa Prosper Co. Ltd.
• Cargill Inc.
• General Mills Inc.
• GrainCorp Ltd.
• Hodgson Mill
• ITC Ltd.
• King Arthur Baking Co. Inc.
• Lieng Tong Rice Vermicilli Co. Ltd.
• Manildra Flour Mills Pty. Ltd.
• Parrish and Heimbecker Ltd.
• PT Sriboga Raturaya
• Savage Services Corp.
• Thai Flour Industry Co. Ltd.
• Thai Wah Public Co. Ltd.
• Wilmar International Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook
  • Wheat
  • Maize/corn
  • Rice
• Application Outlook
  • Bakery products
  • Noodles and Pasta
  • Biscuits/waffles/wafers
  • Animal feed and others
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

Flour is a basic food item used extensively in various cuisines around the world. The global market is significant due to the high demand for baked goods and other food products. The production involves the milling of grains such as wheat, rice, maize, and barley. The market is driven by factors such as population growth, increasing urbanization, and changing consumer preferences. Consumers are increasingly seeking healthier food options, leading to a rise in demand for whole grain and organic flours. Furthermore, the convenience food industry is growing rapidly, leading to an increase in demand for ready-to-eat and convenience food products, which in turn is driving the demand.

Further, the use in the production of various food products, including bakery and confectionery items, pasta, and noodles, is also contributing to the growth of the market. Urbanization and the growth of the food processing industry in developing countries are expected to provide significant opportunities for the market in the coming years. Additionally, the increasing trend of foodservice and the growing popularity of Western-style fast food in these regions are also expected to boost the demand. In conclusion, the global market is expected to grow at a steady pace due to the increasing demand for baked goods and other food products, changing consumer preferences, and the growth of the food processing industry in developing countries.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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