Functional Flours Market Size, Share, Forecast 2030

Functional Flours Market Insights

According to a report from Zion Market Research, the global Functional Flours Market was valued at USD 84.65 Billion in 2023 and is projected to hit USD 176.84 Billion by 2032, with a compound annual growth rate (CAGR) of 8.53% during the forecast period 2024-2032. This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Functional Flours Market industry over the next decade.

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Market Overview

The global functional flours market accounted for USD 65,327.5 Million in 2020 and is estimated to reach USD 1,16,124.9 Million by 2028, growing at a CAGR of 7.7% from 2021 to 2028.

Functional flours are hydro-thermally treated specialized food products made by modifying wheat and other conventional flours to improve their nutritional value. The flours are made from conventional grains or genetically modified grains of wheat, corn, legumes, rice, maize, and other cereals. They have a broad range of applications in the bakery, beverages, food industry, and household purposes. These flours have higher nutrient value and less gluten as compared to conventional flours.

The increase in consumption of convenient and healthy food products and elevated global trade of functional flours are contributing to the market growth. While the high cost of functional flours and stiff regulations by government food safety are hampering the market growth.

The emerging trend of the rise in the purchase of premium quality products and increased expenditure on newly introduced premium quality products over conventional groceries is estimated to lead to market growth.

COVID-19 Impact Analysis

The covid-19 pandemic has significantly affected the functional flours market. Companies have faced a reduction in the number of sales due to stringent covid-19 lockdown regulations. The supply and distribution chain were disrupted, leading to loss of sales. The closing of restaurants, schools, and cafeterias has hampered the market demand for functional flours. Companies have witnessed temporary disruption in production due to workforce disruption, illness, employee migration, and covid-19 spread. Companies have incurred a loss in revenue because third parties like suppliers, commercial transporters, and distributors had failed to fulfill the contract due to covid-19 restrictions. Also, the pandemic has caused a global economic slowdown and reduction in disposable income which hampered the market growth.

Manufacturers are implementing certain strategies to resume their distorted production such as ensuring social distancing at the workplace, temperature screening of employees, providing a clean and safe environment to work, and following strict hygiene regulations to prevent the spread of covid-19 and ensure continuous production of functional flours.

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Growth Factors

The growing demand for premium and healthy food products among consumers, increased awareness for the high nutritional value of functional flours, favorable initiatives by the government and manufacturers to promote functional flours are driving the market growth. Functional flours are preferred by consumers over traditional flours due to their functional qualities like low-fat content, high fiber, and reduced amount of gluten. The high end-user demand for functional flours owing to the rise in consumption of convenience and nutrient-rich food products are bolstering the market demand. Government initiatives to promote nutrient functional flours to overcome nutrient deficiency are also driving the demand. The escalating global trades of functional flours are also estimated to upsurge the market growth in the forecast period.

Functional Flours Market: Report Scope

Type Segment Analysis Preview

The specialty flours segment held a share of around 36.05% in 2020. This segment holds the largest market share of functional flours. This is attributable to an increase in consumer's awareness of healthy food habits. Specialty purpose flours are being increasingly adopted by consumers due to busy lifestyles. These specialty floors are provided as the best alternative for healthy and nutrient-rich food with convenience. The superiority of specialty flours over conventional flours for the improved nutrient quality and superior health benefits are driving the market growth of specialty flours.

The rising trend of premium quality health food products and low-fat food products are propelling the demand for specialty flours. The rise in the number of gluten-intolerant patients is rising the need for specialty flours. The growing per capita income and dispensable expenses are bolstering the market growth of specialty flours.

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Application Segment Analysis Preview

The bakery segment will grow at a CAGR of over 24.97% from 2021 to 2028. This is attributable to the easy availability and easy usage of bakery products. The bakery segment holds the majority of the market share of function flours by application. The rise in consumption f baker products and increased end-user demand for bakery products is contributing to the growth of the segment.

Flours are the key ingredient used in bakery products like bread, cakes, pastries, donuts, rolls, and cookies.  All these products are made from wheat or other multipurpose flour, and they contain gluten. The surge in demand for healthy and gluten-free bakery products is driving the market growth of functional flours in the bakery segment.

Regional Analysis Preview

The North-America region held a share of 37.56% in 2020. This is attributable to the increasing popularity of functional flours for nutritional benefits, taste and texture enhancement, low cost, and healthy nutritious food. North America is the lead shareholder among all the geographies. This dominance is due to the increased inclination of the target consumers towards ready-to-eat convenience food and rising awareness about the health benefits of functional flours. The availability of multigrain food products is also contributing to the growing demand for functional flours in the region. Followed by North America, Europe is a major shareholder of function flours. This elevated demand is due to the demand for gluten-free food products. This region is estimated to continue dominating the market in the forecast period.

The Asia Pacific region is estimated to grow at a CAGR of 9.5% over the forecast period. This is ascribed to the presence of major grain producer countries like India and China. This region provides the opportunity for the functional flours market due to the huge unexplored market. The market in this region is not being exploited yet. This is due to less awareness about the functional flours among the end-users in this region. The major grain producer countries lack infrastructure for food storage and distribution, which is restraining the market growth in the Asia-Pacific region. This is due to the presence of a large population of end-users, this region is estimated to provide growth opportunities for the functional flours market.

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Key Market Players & Competitive Landscape

Some of the key players in the automated sortation system market are Associated British Foods PLC, General Mills Inc, Agrana Beteiligungs-AG, Ingredion Inc, Archer Daniels Midland Company, Bunge Limited, ConAgra Foods, Parrish and Heimbecker Limited, The Scoular Company, Cargill Cooperation, and The Hain Celestial Group Inc.

The leading market player is implementing marketing strategies like research and development of products, mergers and acquisitions, partnerships, joint ventures, new product launches, and launching retail lines to broaden their customer base and strengthen their footprint in the market.

Ex. 1) In April 2021, Cascade Organic Flours, a U.S.-based company, leading whole wheat producer, has introduced a retail line for whole wheat flour. The 5 lb retail bags of whole wheat flour will be made available at the retail outlet.

2) In June 2021, GoodMills company have invested 14.5 million euros in new refining technology for legume flours.

The global functional flours market is segmented as follows:

By Type Of Flour

• Specialty Flour
• Pre-Cooked Flour
• Others

By Application

• Bakery
• Soups & Sauces
• Savory Snacks
• R.T.E. Products
• Others

By Source

• Cereals
• Rice
• Wheat
• Legumes
• Others

By Product

• Conventional Flour
• Additive Based Flour
• Genetically Modified Flour

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa