Global Functional Flours Market Overview
The key driver impacting the functional flours market is the increasing demand for gluten-free products. The high demand for gluten-free food products is estimated to boost market demand in the coming year as functional flour contains less gluten than conventional flour. For instance, According to the Institute of Food Technologists report, the gluten-free food market is estimated to reach $7.6 billion in the United States in 2020. As per the National Restaurant Association (NRA) reports, around 44% of surveyed chefs believe that gluten-free cuisine is a growing food trend. Restaurants are more likely to serve dishes known as gluten-free. Around 26% of restaurant menus mentioned the term "gluten-free" in the U.S., up by 182% in the past four years and increased by 10% in the past year alone. Moreover, the augmented consumer spending and positive government regulations are made to encourage the consumption of healthy food products estimated to be a significant factor that adds growth to the market.
According to Value Market Research, the global functional flours market was valued at around USD 62.5 billion in 2020 and is estimated to grow at a CAGR of about 7.5% during the forecast period of 2020 to 2026.
The growing demand from the food and beverage industry and increasing consumption of ready to eat food products are also predictable to enhance market demand in the forecast period. for instance, according to the Institute of Food Technologists report, worldwide sales of packaged foods and drinks attained $2.1 trillion in 2017 and are supposed to augment at a compound annual growth rate (CAGR) of 2.2% through 2022. the Asia Pacific and the Middle East/Africa food sectors are likely to grow at a high pace in the coming years. the quick-service restaurants are continued to break full-service eateries globally, with sales of $856 billion in 2018 increased by 2.9% than in 2017. however, the increase in strict food labeling legislation and volatility in commodity prices may hamper the global functional flours industry in the long run. also, the lack of technical resources and weak infrastructure is negatively impacting the growth of the market. the current industry trends, such as changing lifestyle and dietary habits of the working population, together with the rising demand for healthier low-fat alternatives, are expected to provide beneficial market opportunities for the market players.
The functional flours market is vast, with many local and global players. the key leaders follow several strategies to improve their market position, such as acquisitions, mergers, expansions, product innovations, and extending product portfolio, to enhance their market share globally. For instance, In 2016, ADM purchased some assets of Caterina Foods (US), which is a leading producer of high-protein and gluten-free pasta. the acquisition can expand its production facilities to produce specialty pasta from legumes and grains. The known players included in the report Archer Daniels Midland Company, Cargill Incorporated, The Scoular Company, The Hain Celestial Group, Inc, Bunge Limited, Associated British Foods plc, General Mills Inc, Parrish and Heimbecker Ltd, ConAgra Foods, Inc, ITC Limited, Ingredion Inc, The Caremoli Group, Unicorn Grain Specialties, SunOpta Limited.
In this research report, the functional flours market is segmented by type, application, source, and region.
Analysis by Type:
By type, the report is categorized into pre-cooked flour and specialty flour. The pre-cooked segment dominates the type segment with a 55% market share in 2020. It is due to its extensive usage in baked products such as cookies, biscuits, crackers, and tortillas for enhancing their nutritional values while maintaining functional and sensory properties. Moreover, high usage of pre-cooked flours in bakery products and breakfast cereals contribute to the growth of the pre-cooked flour segment in the coming years.
Analysis by Applications:
By applications, the report is categorized into bakery, soups & sauces, R.T.E products. The bakery segment dominates the application segment with a 30% market share in 2020. It is due to the growing usage of functional flours in the bakery industry. Functional flours are used to produce bread, cakes & pastries, donuts & rolls, cookies, and other bakery products. Moreover, the rapidly growing liking for bakery products from millennials globally, contributing to the growth of the bakery segment in the forecast period.
Analysis by Source:
By source, the report is categorized into Cereals and Legumes. The cereals segment dominates the source segment with a 55% market share in 2020. It is due to the abundance of raw materials such as wheat, maize, and soy, and Wheat flour is one of the widely used bakery flours. Moreover, growing demand from the food sector contributes to the vast growth of the cereals segment in the forecast period.
Analysis by Region:
In the regional outlook of the global functional flours market, the North America region dominates with a maximum market share of 40% in 2019. The rising technological innovations and launch of a broad variety of functional flour products with different sources and taste and are driving the functional flour market in North America. Moreover, the growing focus of consumers towards healthy food products is contributing to the development of functional flours market across North America.
Market Segmentation covered in the Report:
- Pre-Cooked Flours
- Specialty Flours
- Others (enriched flours, instant flour mixes, and composite flours)
- Bakery Products
- Soups & Sauces
- RTE Products
- Others (seasoning bases, coatings, spreads & infant formula, special diet foods, and beverages)
- North America
- The Asia Pacific
- Latin America
- The Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.