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Commercial Flour Market: Rising Demand for Improved Flour Products Boosts Market Growth

Commercial Flour Market: Rising Demand for Improved Flour

The global commercial flour market is majorly restrained by the price volatility of grains affected due to changing climatic conditions that hamper overall production. As competition intensifies in the sector with price wars among leading players, industry players are expected to improve the efficiency of their value chain, from inbound logistics to distribution and, to a large extent, marketing and export of products. Revenue generated from the global commercial flour market valuated at US$ 44,008.3 Mn in 2017 and is expected to increase at a CAGR of 2.2% over the forecast period 2017-2025, reaching US$ 52,518.6 Mn by the end of 2025.

Expanding demand for gluten-free foods and increasing per capita food consumption in developing countries are the primary drivers leading the global commercial flour market during the forecast period. Rising demand for convenience foods, innovation in packaging, and food preferences of expanding young population are also expected to provide traction to market growth in near future.

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Rising health concerns among people and increasing need for gluten-free diets are facilitating the demand for commercial flour. As rice and corn flour are naturally gluten-free products, consumers are expected to sustain consumption of these two products in near future. People in North America and Europe have been preferring pregelatinized flour or gluten-free flour over others due to the rising health concerns. Increasing sensitiveness for gluten-free flour, such as white rice flour and corn flour, are driving the market and are being increasingly used in flour-based products. Growing demand for these products is influencing the growth of the flour market, and is expected to continue over the estimated time period.

Besides price volatility of grains due to uncertain climatic conditions, there are some other restraints that are potentially restricting the growth of the commercial flour market. Irregularities in climate and seasonal variations affect crops due to critical and uneven rainfall patterns. A reduction in rainfall also adversely affects the agricultural yields in many regions, which results in variations in input as well as output prices. There have been variations in the cost of energy, chemicals, and fertilizers. These fluctuations lead to a volatility in the prices of crops. Increased volatility is the structural issue for which players must find operational responses to secure margins in the long term. In 2017, the prices of wheat was up nearly 6% due to heavy rainfall in the Midwest region of the U.S.

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Worldwide, consumers are keenly looking out for healthier, improved, easy-to-cook, and ready- to-eat foods due to the lack of time in daily life. Baked products such as bread are consumed on a regular basis in many regions, mainly in the U.S. Due to growing health and diet concerns, and preference for healthy products, flour, mainly rice and corn flour, are used in baked products, which are gluten-free and healthier as compared to wheat flour. Baked products and snacks such as cakes, pizzas, pastries, cookies, and other products are gaining popularity among children and the younger generation, which is likely to create further growth opportunities for flour manufacturers. The U.S is projected to be a rapidly growing market for baked products. Increasing disposable income and rising popularity about flour-based product consumption are driving the growth of the market. Thus, the demand for baked products is expected to increase in the coming years, which will lead to a rise in commercial flour utilization in different regions.

Some of the major companies operating in the global commercial flour market are Cargill Inc., ARDENT MILLS LLC, Archer Daniels Midland Company, ConAgra Foods, Inc., General Mills, Inc., Riviana Foods Inc, Bob's Red Mill Natural Foods, Inc., Bay State Milling Company, Bartlett and Company, The Mennel Milling Company, Hodgson Mill, King Arthur Flour Company, Inc, Ingredion Incorporated, Bunge Limited, The Hain Celestial Group, Grain Craft, Inc, Miller Milling Company, The White Lily Foods Company, Wheat Montana and North Dakota Mill.

Get more Information: https://globenewswire.com/news-release/2018/03/27/1453649/0/en/Commercial-Flour-Market-is-projected-to-reach-US-52-518-6-Million-by-2025-Consumer-Inclination-towards-Natural-Gluten-free-Products-to-Uplift-Global-Commercial-Flour-Sales.html

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