Functional Flours Market

[141 Pages Report] The global functional flours market size is expected to grow from USD 49.65 billion in 2016 to USD 78.00 billion by 2022, at a CAGR of 7.82% from 2016 to 2022. Functional flours are used in a variety of food & beverage products providing the desired organoleptic characteristics. These flours undergo heat treatment, protein treatment, enzyme treatment, vitamin and mineral treatment, or water treatment in order to increase their stability, regularity, and other functions and also to enhance their nutritive values. The market for functional flours is driven by the rising demand from the food & beverage processing industry. Functional flours are being used in many applications such as bakery products, soups & sauces, RTE products and other applications. The base year considered for the study is 2015, and the forecast has been provided for the period between 2016 and 2022.

Market Dynamics

Drivers

• Increase in demand for premium food products
• Initiatives to promote functional flours
• Increasing consumption of convenience and healthy food products
• Intensification of the global trade of functional flours

Restraints

• Stringent government regulations
• Volatile commodity prices

Opportunities

• Growing demand for healthier low fat alternatives
• Emerging economies

Challenges

• Lack of infrastructure and technological resources in developing countries

Initiatives to promote functional flours drive the global functional flours market

Governments and associations are promoting the usage of functional flours due to the increasing instances of nutritional deficiency in larger demographics. They are hence promoting the usage of enriched flours. For instance, the associations of industrial millers in Latin America and the Caribbean played an important role in promoting and enabling flour fortification throughout the region. Another such program by the Flour Fortification Initiative has led to the broad implementation of flour fortification in countries of the Eastern Mediterranean, Middle Eastern, and North African regions. Many companies such as Cargill, Incorporated (US) have joined this initiative to promote functional flours.

These initiatives are creating awareness among processors and are resulting in the wider acceptance of enriched flours. Moreover, technological developments, business developments, increasing trade, and marketing in support of flour fortification are further promoting the usage of functional flours.

The following are the major objectives of the study.

• To describe and forecast the functional flour market, in terms of value, by type, application, source, and region
• To describe and forecast the market, in terms of volume, by type and application
• To describe and forecast the market, in terms of value, by region–Asia Pacific (APAC), Europe, North America, and Rest of the World (RoW) along with their respective countries
• To provide detailed information regarding major factors influencing market growth (drivers, restraints, opportunities, and challenges)
• To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market
• To study the complete value chain of functional flour
• To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the functional flour
• To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing competitive landscape for market leaders
• To analyze strategic approaches such as product launches, acquisitions, contracts, agreements, and partnerships in the market

During this research study, major players operating in the functional flour market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study

To know about the assumptions considered for the study, download the pdf brochure

The key players in this market are Cargill, Incorporated (US), Archer Daniels Midland Company (US), Bunge Limited (US), Associated British Foods plc (UK), and General Mills, Inc. (US). Other players include The Scoular Company (US), AGRANA Beteiligungs-AG (Austria), The Hain Celestial Group, Inc. (US), SunOpta, Inc. (Canada), and Parrish and Heimbecker, Limited (Canada).

Major Market Developments

• In September 2016, ADM purchased certain assets of Caterina Foods (US), a leading manufacturer of specialty gluten-free and high-protein pastas. This acquisition would expand its production facilities to produce specialty pastas from legumes and grains.
• In June 2016, The Scoular Company purchased the assets of Tri-Fields Farms (U.K.). This enabled the company to meet the needs of its customers.
• In August 2015, ADM set up its distribution and merchandising offices in Central America. This enabled the company to enhance its distribution network for grain, meal, and oil products
• In July 2016, Bunge entered into a joint venture with Wilmar International Limited (Singapore), in Vietnam. This enabled the company to increase its marketing, operating, and logistics synergies across Vietnam.
• In February 2016, ADM agreed to purchase a controlling stake in Harvest Innovations (US), to meet the demand for gluten-free, expeller-pressed, organic, and non- GMO food.

Target Audience

• Raw material suppliers
  • Farmers
  • Agricultural institutes
  • R&D institutes
• Functional flour manufacturers/suppliers
• Regulatory bodies
  • Organizations such as the Food and Drug Administration (FDA), European Food Safety Authority (EFSA) , U.S. Department of Agriculture (USDA), and Food Standards Australia New Zealand (FSANZ)
  • Government agencies and NGOs
  • Food safety agencies
• Intermediary suppliers
  • Wholesalers
  • Dealers
• Consumers
  • Food & beverage manufacturers/suppliers
  • Retailers
• End users (soups, sauces, spreads, and bakery & meat products manufacturers)

Report Scope

By Type

• Pre-Cooked Flours
• Specialty Flours
• Others (enriched flours, instant flour mixes, and composite flours)

By Application

• Bakery Products
• Soups & Sauces
• RTE Products
• Others (seasoning bases, coatings & breadings, spreads & infant formula, special diet foods, and beverages)   

By Source:

• Cereals
• Legumes

By Geography

• North America
• Europe
• Asia Pacific (APAC)
• Rest of the World (RoW)

Critical questions which the report answers

• What are new application areas which the functional flour companies are exploring?
• Which are the key players in the market and how intense is the competition?

Available Customizations

Based on the given market data, MarketsandMarkets offers customizations in the reports as per the client’s specific requirements. The available customization options are as follows:

Geographic Analysis

• Further country-wise breakdown of the market in APAC based on application

Company Information

• Detailed analysis and profiling of additional market players (Up to 5)

The functional flour market is expected to grow from USD 49.65 billion in 2016 to USD 78.00 billion by 2022 at a CAGR of 7.82%. The market has been growing in accordance with the growth of the processed food industry. The effect of busy lifestyles and the inclination toward convenience and healthier food options in developing economies have propelled the market for processed food & beverages; hence, there is a rise in the demand for functional flours as well.

Flours that undergo heat treatment, water treatment, enzyme-treatment, fortification, extrusion, and/or other treatments in order to increase their organoleptic properties such as texture, stability, regularity, and other functions are termed as functional flours. Functional flours are used by manufacturers of R.T.E products, bakery items, snacks, soups & sauces, seasoning bases, coatings & breadings, spreads & infant formula, and special diet foods & beverages. These manufacturers are influenced by the changes in consumption patterns of consumers, price of ingredients, and regulatory norms.

The functional flour market has been segmented, on the basis of type, application, source, and region. The market for specialty flours is expected to grow at the highest CAGR between 2016 and 2022. Pre-cooked flours are produced to enhance their nutritional values, while maintaining functional and sensory properties in baked products such as cookies, biscuits, crackers, and tortillas. These flours are widely used in bakery products and breakfast cereals. The high usage of pre-cooked flours in bakery products and breakfast cereals contribute to the rapid growth of the market.

The market for functional flours in the Asia-Pacific region is projected to grow at the highest CAGR. For a highly populous region, the consumption of functional flours is very low in Asia-Pacific; this was because the sale of processed food products is comparatively lower due to lack of awareness in the region. Hence, there is still a huge market that has remained untapped, which is opening up opportunities for the functional flours industry.

Functional flour applications in RTE products, bakery products, and soups & sauces drive the growth of functional flour market

Rte Products

RTE products include breakfast cereals, snacks, pastas, ready-to-eat meals, and nutritional bars among others. There are various kinds of RTE products available in the market, in which functional flours are a major ingredient. Busy lifestyles of working populations demand on-the-go food in order to save time, which they would have otherwise spent in the preparation of food & beverages at home. This has led to emergence of a new class of RTE products that has varied offerings from breakfast to supper, coupled with healthier offerings that deliver whole-grain and other nutritional benefits that are in demand.

Bakery Products

Functional flours are widely used in the bakery industry. They are used in the production of breads, cakes & pastries, donuts & rolls, cookies, and other bakery products. Wheat flour is one of the most common and widely used bakery flours. Other flours such as corn, rice, and oats are largely composed from starch and protein; however, wheat flour is distinctive as it has very high levels of a class of proteins collectively known as gluten. When dough is made from wheat flour and water, the gluten develops into a thick, cohesive, elastic mass. When placed in an oven, it raises the dough and gives it a porous texture. This characteristic enables gluten to provide the structure required in baked products such as cakes and breads.

Soups & Sauces

Most soups & sauces have flour-based ingredients which are engineered to provide viscosity, texture, and flavor enhancements. Specialty flours such as pre-cooked flours, glutinous flours, and heat-treated flours improve product texture, performance, and storage stability. These flour products are superior in their ability to handle temperature fluctuations and can be kettle-cooked, retorted, refrigerated, and frozen without imparting negative attributes to the final product.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for functional flour?

Lack of Lack of infrastructure and technological resources in developing countries is a major factor restraining the growth of the market. According to the FAO, approximately 25% to 50% of the total food produced in the world is wasted every year due to the lack of proper facilities for handling, storage, and transport of fresh farm produce in many parts of the world. A major part of the food loss is accounted for by developing countries such as China, India, and Brazil, among others, which lack modern infrastructural facilities, despite being the top producers of grain crops and related products. According to the Food Corporation of India (FCI), as much as 194,502 metric tons was wasted in India due to various reasons between 2005 and March 2013. According to a University of Illinois agricultural economist, Brazil also reported a loss of around 10% of the total grain crops in 2013, owing to poor infrastructure. Thus, the lack of proper infrastructure acts as a challenge for companies to expand their market in emerging economies.

The key players in this market are Cargill, Incorporated (US.), Archer Daniels Midland Company (US), Bunge Limited (US), Associated British Foods plc (UK), and General Mills, Inc. (US). Other players include The Scoular Company (US), AGRANA Beteiligungs-AG (Austria), The Hain Celestial Group, Inc. (US), SunOpta, Inc. (Canada), and Parrish and Heimbecker, Limited (Canada).  

These players are increasingly undertaking acquisitions as a key growth strategy to develop and introduce new technologies and products in the market.

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