Flour Market Outlook, 2029

Flour, a seemingly simple and unassuming ingredient, holds a pivotal role in the world of culinary arts. Derived from grinding grains, seeds, or roots into a fine powder, flour has been a fundamental component of human diets for thousands of years. Its ubiquity in various cuisines across the globe underscores its versatility and importance in the culinary world. Flour is a staple ingredient in many kitchens around the world, used in a wide variety of dishes from bread, pasta, and pastries to sauces, gravies, and coatings for fried foods. It is primarily made by grinding cereal grains, beans, or other seeds or roots into a fine powder.

The most common type of flour is wheat flour, but there are many other varieties, each with its unique properties, uses, and nutritional profiles. Flour is a versatile ingredient with many uses in cooking and baking. Its primary use is as the base ingredient in baked goods, where it provides structure and texture. The use of flour can be traced back to ancient civilizations where manual stone grinding techniques were employed to process grains. As societies advanced, so did milling methods, evolving from hand-operated mills to water and wind-powered mills during the middle Ages. The Industrial Revolution marked a turning point, introducing steam power and automation to flour milling, significantly increasing efficiency and production capacity. The protein in flour combines with water to form gluten, which gives bread its chewy texture and cakes their tender crumb. Flour is also used as a thickening agent in sauces, gravies, and soups. When mixed with fat and cooked, it forms a roux, which can thicken liquids and add flavor. Additionally, flour can be used as a coating for fried foods, helping to create a crispy exterior. The nutritional value of flour varies depending on the type of grain used and how much of the grain is included. Whole grain flours including the entire grain (bran, germ, and endosperm), are generally more nutritious than refined flours, which only include the starchy endosperm. Whole grain flours are a good source of dietary fiber, which aids digestion and helps prevent heart disease and type 2 diabetes. They also contain B vitamins, which are essential for energy production and brain function, and minerals like iron, magnesium, and selenium. From bread, pasta, and pastries to sauces, gravies, and coatings for fried foods, flour is a versatile and essential ingredient in many cuisines around the world.

According to the report “Global Flour Market Outlook, 2029”, the market is anticipated to cross USD 390 Billion by 2029, increasing from USD 264.17 Billion in 2023. The market is expected to grow with 6.76% CAGR by 2024-29. The world's population is steadily increasing, driving higher demand for staple food products like bread, pasta, and baked goods. Flour is a fundamental ingredient in these items, making the industry a critical player in meeting the growing demand for food. Evolving consumer preferences and the influence of diverse culinary trends have led to a surge in the consumption of various flour-based products.

As people explore different cuisines and lifestyles, the demand for specialty flours, gluten-free alternatives, and unique flour blends has risen. The COVID-19 pandemic, with lockdowns and increased time spent at home, sparked resurgence in home baking. Many individuals turned to baking as a therapeutic and creative outlet, driving up the demand for flour and related baking products. The growing awareness of the connection between diet and health has prompted consumers to seek healthier alternatives. Whole wheat and ancient grain flours, known for their higher nutritional content, have gained popularity as people prioritize wellness in their food choices.

Flour fortification initiatives, where essential nutrients like iron, folic acid, and B vitamins are added to flour, have become more prevalent. This addresses nutritional deficiencies and aligns with a broader trend of consumers seeking products with enhanced health benefits. Flour manufacturers are increasingly entering new markets and expanding their global footprint. As international cuisines gain popularity worldwide, the demand for different types of flours has surged, contributing to the industry's growth. Modern milling technologies have significantly improved the efficiency and quality of flour production. Automated and precision-controlled milling processes ensure consistency and allow for the production of a wide range of flours tailored to specific consumer needs. With the rise in gluten sensitivity and celiac disease awareness, there has been a surge in the demand for gluten-free flours. The development of innovative gluten-free alternatives, such as almond flour, coconut flour, and chickpea flour, has opened up new market segments. Increasing consumer awareness about environmental sustainability and ethical sourcing has led to a shift in preferences. Flour companies adopting sustainable practices in production, sourcing, and packaging are often favored by conscientious consumers. The demand for convenience foods has risen, prompting the growth of pre-packaged and ready-to-eat products. Flour is a key ingredient in many of these items, contributing to the industry's expansion.

Market Drivers

Increasing demand for bakery products: The global demand for bakery products is increasing due to changing lifestyles, urbanization, and a growing middle-class population. Bakery products such as bread, cakes, pastries, and cookies are popular food items consumed by people of all ages. This rising demand for bakery products is a significant driver for the flour industry, as flour is a key ingredient in most bakery products.

Growing preference for convenience foods: The modern lifestyle has led to an increase in demand for convenience foods that are easy to prepare and require minimal cooking time. This trend has resulted in a surge in demand for packaged and processed foods, many of which use flour as a key ingredient. The flour industry is benefiting from this trend as consumers are opting for ready-to-eat and ready-to-cook food products.

Market Challenges

Fluctuating commodity prices: The flour industry is heavily dependent on the availability and price of raw materials such as wheat, corn, and other grains. Fluctuations in commodity prices can have a significant impact on the profitability of flour mills. Unpredictable weather patterns, political instability, and trade disputes can all contribute to price volatility, making it challenging for flour mills to manage their costs.

Changing consumer preferences: Consumers are becoming more health-conscious and are increasingly seeking out healthier and more nutritious food options. This trend is leading to a shift away from traditional refined flours towards whole grain and gluten-free flours. The flour industry must adapt to these changing consumer preferences and develop new products that meet the demand for healthier options.

Market Trends

Clean label and organic products: Consumers are increasingly demanding clean label and organic products, which are free from artificial additives, preservatives, and genetically modified organisms (GMOs). The flour industry is responding to this trend by developing clean label and organic flour products that meet consumer demand for healthier and more natural food options.

Innovation in flour products: The flour industry is constantly innovating to develop new products that meet the changing needs and preferences of consumers. This includes the development of gluten-free, high-protein, and high-fiber flours, as well as flours fortified with vitamins and minerals. These new products are helping to expand the market for flour and create new growth opportunities for the industry.

Wheat flour's preeminence in the flour market is rooted in its remarkable versatility, which stems from a harmonious blend of balanced gluten content, widespread adaptability, and the capacity to serve as the foundational building block for an extensive array of culinary creations.

Wheat flour stands at the forefront of the flour market due to its multifaceted nature, embodying a combination of unique attributes that render it an unrivaled choice for a diverse range of culinary applications. One of its key distinguishing features lies in its balanced gluten content. Gluten, a protein present in wheat flour, imparts elasticity and structure to dough, facilitating the leavening process and contributing to the distinctive textures found in various baked goods. This quality makes wheat flour particularly well-suited for the production of staples like bread and pasta, where gluten's role in providing volume and chewiness is essential. Furthermore, the adaptability of wheat flour in the kitchen is unparalleled.

Its neutral flavor profile serves as a versatile canvas for both sweet and savory creations, allowing it to seamlessly integrate into a myriad of recipes. Whether crafting flaky pastries, delicate cakes, or hearty bread, wheat flour's chameleon-like ability to complement and enhance diverse flavor profiles has solidified its status as an indispensable ingredient in kitchens globally. Beyond its culinary attributes, the prevalence of wheat cultivation across the globe plays a pivotal role in its market dominance. The widespread availability and consistent supply of wheat contribute to the economic feasibility of large-scale production, making it a practical choice for both individual consumers and industrial manufacturers alike.

Wheat flour stands as a cornerstone within the global flour market, boasting a substantial and noteworthy share. This dominance can be attributed to a myriad of factors that contribute to wheat flour's widespread utilization and enduring influence on the world's food industry. Wheat flour's versatility makes it a staple in countless culinary applications worldwide. It serves as a foundational ingredient in various cuisines, ranging from bread and pastries to pasta and noodles. This universal appeal ensures a consistent demand for wheat flour across diverse cultures and regions. Furthermore, wheat's inherent gluten content gives it unique baking properties, making it the preferred choice for creating doughs that rise and maintain their structure. This attribute is pivotal in producing bread with the desired texture and volume, which is a fundamental aspect of many traditional diets and modern food preferences.

Conventional flour's dominance in the flour market can be attributed to its widespread availability, cost-effectiveness, and the established familiarity and preference of consumers for its traditional and versatile applications in diverse culinary settings.

Conventional flour, often synonymous with all-purpose or wheat flour, commands a leading position in the flour market due to a confluence of factors that collectively contribute to its supremacy. The primary driver of its dominance lies in its widespread availability and accessibility. Conventional flour, derived from commonly cultivated grains like wheat, enjoys a vast production scale, ensuring a consistent and ample supply to meet the demands of both consumers and industrial-scale food manufacturers. Cost-effectiveness is another critical facet of conventional flour's appeal.

Its production, being deeply entrenched in traditional agricultural practices and well-established milling techniques, allows for economies of scale, resulting in a lower cost of production. This affordability makes conventional flour an attractive choice for a broad spectrum of consumers, from home bakers to large-scale food producers, contributing significantly to its market leadership.

Moreover, the familiarity and versatility of conventional flour play a pivotal role in its widespread adoption. Consumers worldwide have grown accustomed to the traditional uses of flour in baking bread, making pasta, or creating various pastries and desserts. The comfort and predictability associated with the performance of conventional flour in these applications further solidify its status as a staple ingredient in kitchens globally. Its neutral taste and consistent texture make it a reliable base for a diverse range of culinary creations, whether savory or sweet.

The prominence of bread and bakery products as the leading application in the flour market is driven by their widespread consumer demand, cultural significance, and the versatile adaptability of flour to create a diverse range of baked goods.

Bread and bakery products occupy a central position in the flour market owing to a confluence of factors that collectively underscore their unparalleled popularity and widespread consumption. At the heart of this dominance is the universal appeal of bread as a dietary staple and the diverse array of bakery items that have become integral to culinary cultures across the globe. Bread, in its various forms such as loaves, rolls, and flatbreads, is a dietary cornerstone for many cultures, representing sustenance and comfort. Its versatility as a vehicle for both sweet and savory accompaniments enhances its appeal, ensuring a consistent demand that spans breakfast tables to dinner settings.

The versatility of flour is a pivotal element in the ascendancy of bread and bakery products within the market. Flour's unique ability to form gluten when mixed with water enables the leavening process, giving rise to the characteristic textures and structures found in bread. This same quality allows for the creation of an extensive variety of bakery products, ranging from delicate pastries and cakes to hearty bagels and pizza crusts.

The adaptability of flour in these applications aligns seamlessly with the diverse preferences of consumers, offering a canvas for both traditional and innovative culinary creations. Furthermore, the cultural significance attached to bread and bakery products plays a substantial role in their leading position. Many societies have rich culinary traditions centered on specific types of bread or pastry, contributing to the enduring demand for flour in the production of these culturally significant items. Whether it's the baguette in France, naan in South Asia, or tortillas in Latin America, the cultural resonance of these baked goods solidifies their enduring presence on tables worldwide.

The direct sales channel's supremacy in the flour market is primarily driven by the evolving consumer preferences for convenience, the desire for fresh and high-quality products, and the establishment of direct relationships between producers and consumers.

The ascendancy of the direct sales channel in the flour market reflects a paradigm shift in consumer behavior, where an increasing number of individuals seek convenience, transparency, and a closer connection to the source of their food. Direct sales, which encompass various avenues such as online platforms, farmer's markets, and on-site mills, have gained prominence as consumers prioritize accessibility to fresh, high-quality products directly from producers. This shift is fueled by a growing awareness of the origins and production processes of the food they consume, as well as a desire for a more personalized and transparent shopping experience. The convenience factor plays a pivotal role in the direct sales channel's leadership.

Online platforms allow consumers to browse and purchase flour from the comfort of their homes, eliminating the need for traditional brick-and-mortar retail experiences. This convenience is particularly appealing to modern, time-conscious consumers who value the ease of online transactions and doorstep delivery. Additionally, farmer's markets and on-site mills provide a tangible and engaging shopping experience, allowing consumers to interact directly with producers, ask questions about the products, and gain insights into the flour's quality and production methods. Moreover, the direct sales channel facilitates a direct relationship between producers and consumers, fostering trust and brand loyalty. Producers can communicate their commitment to sustainable practices, quality sourcing, and any unique aspects of their flour, establishing a narrative that resonates with conscientious consumers. This direct connection creates a sense of authenticity and accountability, distinguishing the flour in the direct sales channel from mass-produced alternatives often found in traditional retail settings.

Asia Pacific is expected to dominate the flour market during the forecast period as there is triggering demand for flour and its products with an increasing population base, rising consumption of bakery and fast food, and increasing urbanization and disposable income.

The Asia Pacific region plays a vital role in the global flour market, boasting a substantial share that contributes significantly to the industry's dynamics. This prominence can be attributed to a combination of factors that have propelled the region's influence in the market. With countries such as China, India, Indonesia, and Japan, the region is home to some of the world's most populous nations. This demographic advantage translates into high consumption levels of flour-based products, including staple foods like bread, noodles, and various baked goods. As a result, the demand for flour remains consistently strong, driving production and trade within the region.

Furthermore, Asia Pacific's diverse culinary traditions contribute to the multifaceted nature of the flour market. From the rice-centric diets of East Asian countries to the wheat-based preferences in South Asia, the region encompasses a wide spectrum of flour usage. This diversity necessitates a range of flour types and qualities, catering to various culinary needs. As a result, flour millers and producers in the region tailor their offerings to meet these specific requirements, further fueling the market's growth. Rapid urbanization and changing lifestyles in the Asia Pacific region also play a significant role. As more people migrate to cities and adopt busier routines, the demand for convenient and processed foods increases.

Flour serves as a versatile ingredient in the production of packaged foods, instant meals, and convenience products. This shift in consumption patterns aligns with the region's economic development and contributes to the steady expansion of the flour market. Moreover, the rise of a burgeoning middle class in many Asia Pacific countries has led to changing dietary habits and preferences. As disposable incomes increase, consumers are diversifying their diets and incorporating more processed and value-added food products. This trend, in turn, drives the demand for flours used in a wide array of packaged foods, snacks, and bakery items.

Companies launch new products to increase their market penetration. About 38% of the studied strategies were product launches in the flour industry. Bread & bakery products, noodles & pasta, animal feed (including pet food), wafers, crackers & biscuits, non-food applications (including bio-plastics, biomaterials and glue) are gaining increased traction across world, which has led to increased number of flour manufacturers. Key players such as Ardent Mills, Archer Daniels Midland Co., Associated British Foods plc, ConAgra Foods, Inc., General Mills Inc., Hindustan Unilever Limited, Willmar International Limited, and Cargill enhance their product portfolios by launching flour with different qualities for different applications.

For instance, in 2016, Ardent Mills announced its intent to acquire the Mondelz Canada flour mill, located in Mississauga, Ontario, Canada. The mill produces hard and soft wheat flour for its Canadian bakeries and a number of food manufacturing customers. The transaction is expected to close in the next few weeks. In addition, in 2015, Ardent Mills, the premier flour-milling and Ingredients Company, partnered with the Colorado Rapids of Major League Soccer (MLS) for a season-long giving program to benefit Food Bank of the Rock.

Increased number of consumers is on the lookout for healthier foods that are made with natural ingredients, and have a good taste. ADM is already helping customers meet that growing demand with its comprehensive portfolio of ingredients and flavors. Currently, it is expanding its portfolio even further by offering customers worldwide with a wide array of great stevia and monk fruit sweeteners. They are pleased to partner with GLG, which has a demonstrated advantage in developing non-GMO stevia varietals and a pipeline of future innovative products.

Recent Developments

• In March 2023, Bay State Milling Company launched Wingold® Wellness multi-purpose flour.
• In May 2022, Gujarat Co-operative Milk Marketing Federation Limited (GCMMF), known for its products under the Amul brand, introduced organic whole wheat flour. Amul organic wheat flour will be offered in two different pack sizes and will be launched at Amul Parlors and prominent retail stores throughout Gujarat, India.
• In June 2022, Archer Daniels Midland Company acquired Prairie Pulse Inc., the owners of a milling, pulse crop cleaning, and packaging facility in Vanscoy, Saskatchewan. This acquisition effectively doubles its regional pulse footprint.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Flour market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Wheat
• Maize
• Rice
• Oats
• Others (Chickpea flour, Lentil flour, Coconut flour, Almond flour)

By Nature

• Conventional
• Organic

By Application

• Bread and Bakery Products
• Pasta and Noodles
• Snacks
• Baby Food
• Animal Food
• Others

By Sales Channel

• Direct
• Indirect

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Flour industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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