Functional Flour Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.11 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Functional Flour Market Analysis
The Functional Flour Market is projected to register a CAGR of 5.11% during the forecast period.
Functional flour is predicted to become increasingly prevalent as the emphasis on plant-based diets, and more specifically, plant protein, continues to grow as consumer demand increases globally. The categories of flatbreads, biscuits, pastries, cakes, and cookies are a few examples of those with scope for expansion. Since all of these products are cereal-based, there is a chance to develop cereal and pulse-based ingredients to produce mixes that are complementary from the perspective of protein quality, sustainability, and functionality.
Consumers worldwide are striving to adopt a combination of grains, cereals, and lentils in their everyday food for essential nutrients. In addition, increasing gluten allergies are stoking demand for non-wheat-based flour. This is stoking demand for functional flours that are composed of soy flour, rye flour, and oat flour, among others. Moreover, it is common in some nations, particularly those in Africa and Latin America, to combine wheat flour with non-wheat flour made from maize, millet, sweet potatoes, cassava, soybeans, or other ingredients, like yams. The result is referred to as composite flour.
Population growth and lifestyle changes are driving up demand for agricultural and food products. Many food manufacturers are looking for alternative flour to replace wheat flour in new formulations with high nutritive value and bioactive properties. Barley flours enriched in bioactive compounds are appealing ingredients to meet the requirements of the end consumers as they can be easily incorporated into various food matrices.
Functional Flour Market Trends
Increasing Consumption of Nutrient-enriched Foods to Improve Overall Health
The increasing demand for nutrient-enriched foods due to the hectic lifestyle of people and the rising awareness of the health benefits of these foods among them is predicted to drive market growth. This has led the consumer interest in diet and health, which increased the demand for functional foods. The prevalence of obesity is growing in all developed countries globally. Therefore, consumers are inclined toward foods containing functional ingredients to reduce the risk of certain health conditions such as obesity, weight management, diabetes, and cardiovascular diseases. The hectic lifestyles and increasing stress have contributed to the prevalence of such health disorders. According to WHO (World Health Organization), in 2022, obesity affects more than one billion people worldwide, including 650 million adults, 340 million adolescents, and 39 million children and the figures are still rising. By 2025, approximately 167 million people - adults and children - will be less healthy due to being overweight or obese.
In general, people tend to consume meals three to four times a day. This has created a negative impact on people's health. The growing awareness and shift in eating habits have led to a trend of eating smaller meals during the day. These factors have given a boost to healthy foods and the replacement of meals with healthy biscuits, snacks, and energy or protein bars. Also, the growing trend of on-the-go snacking is becoming extremely popular among children, owing to their need for regular meals, while adults prefer them due to their busy lifestyles. Other factors, such as growing disposable income, ease of carrying, and increasing health concerns, are also augmenting the market growth.
North America Holds the Major Share
Functional flour is gaining popularity for its cost-cutting, nutritional benefits, thickening, texture, and taste enhancements. However, the trend of gluten-free and clean labels is the primary factor driving the market. North America dominates the market with a high awareness of product efficiency and the demand for premium products. New trends in the United States functional bars reveal that the demand for functional food products has been increasing in the country. The fortification of granola/ muesli bars and food products with omega-3 fatty acids, calcium, fiber, and others has been trending in the United States marketplace. Approximately 6% to 7% of the United States population are gluten-intolerance which implies that 20 million people in the United States are gluten-sensitive. As a result, over 20% of United States consumers opted for gluten-free products.
The increase in consumption of nutritive convenience and fortified food and the growing health awareness is leading to increased consumption of healthier diets, thereby driving the market. As the healthcare expenditure pattern in the country is growing each day, therefore, consumers in the country are adopting preventive healthcare measures, such as eating nutritious food. This factor is further driving the overall sales in the country. However, the growing influence of western culture has boosted the demand for high-protein and nutrient foods.
Functional Flour Industry Overview
The functional flour market is fragmented and competitive, with a large number of players operating at regional and local levels. The key players in the market adopted expansions and investments in function flour as their growth strategies. Some of the major companies in the functional flour market are Cargill Inc., Archer Daniels Midland Company, Associated British Foods, Ingredion Inc., and Bunge Limited, among others. Product innovation and development is the most adopted strategy by the players operating in the market, followed by mergers and acquisitions and expansions for increasing their visibility and portfolio of offerings. Manufacturers are focusing on providing ingredients that increase the shelf-life of the product. For instance, in June 2021, Müller's Mühle, a Germany-based manufacturer, announced an investment of USD 17.6 Million (EUR 14.5 Million) in a new refining technology for its legume flour offering. The company will be able to make functional flours with up to 65% protein content due to the investment made in the cutting-edge air separation facility.
Functional Flour Market Leaders
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Cargill, Incorporated
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Archer Daniels Midland Company
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Associated British Foods plc
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Ingredion Incorporated
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Bunge Limited
*Disclaimer: Major Players sorted in no particular order
Functional Flour Market News
- Oct 2021: Cargill launched a rice flour-based maltodextrin substitute. Cargill's new soluble SimPure rice flour is a clean label that has a similar taste, texture, and functionality as maltodextrin. This ingredient can be used as a one-to-one replacement for maltodextrin.
- Jul 2021: Ulrick & Short launched a functional flour aimed specifically at improving viscosity, texture, and structure in gluten-free bakery applications. The ingredient, called fazenda Nutrigel, is an addition to the company's functional flour range launched in 2020. The ingredient acts as a viscosity regulator in bakery applications and has been designed to improve the moisture, softness, and structure in a range of products.
- Mar 2021: With the introduction of Homecraft Create 835 and Homecraft Create 865 multifunctional rice flours, Ingredion EMEA extended its portfolio of functional starches and flours to assist manufacturers in producing clean-label baby food products. Multifunctional rice flours provide the viscosity, process tolerance, and stability of modified starch and are suitable for dry foods such as cook-up cereals but with an emphasis on wet baby food applications.
Functional Flour Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Industry Attractiveness - Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Source
- 5.1.1 Cereals
- 5.1.2 Legumes
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5.2 Type
- 5.2.1 Specialty Flour
- 5.2.2 Conventional Flour
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5.3 Application
- 5.3.1 Bakery
- 5.3.2 Savory Snacks
- 5.3.3 Soups and Sauces
- 5.3.4 Ready-to-Eat products
- 5.3.5 Other Applications
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.1.4 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 United Kingdom
- 5.4.2.2 Germany
- 5.4.2.3 France
- 5.4.2.4 Russia
- 5.4.2.5 Italy
- 5.4.2.6 Spain
- 5.4.2.7 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 India
- 5.4.3.2 China
- 5.4.3.3 Japan
- 5.4.3.4 Australia
- 5.4.3.5 Rest of Asia-Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle-East and Africa
- 5.4.5.1 South Africa
- 5.4.5.2 Saudi Arabia
- 5.4.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies Adopted by Leading Players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Cargill, Inc
- 6.3.2 Archer Daniels Midland Company
- 6.3.3 Associated British Foods plc
- 6.3.4 Ingredion Inc.
- 6.3.5 Parrish and Heimbecker Limited
- 6.3.6 Bunge Limited
- 6.3.7 Südzucker AG (Agrana Beteiligungs-AG)
- 6.3.8 The Scoular Company
- 6.3.9 GEMEF Industries
- 6.3.10 The Caremoli Group
- 6.3.11 Ulrick & Short
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityFunctional Flour Industry Segmentation
Functional flours are modified heat or non-traditional flours that claim to improve health benefits beyond that of the nutrition found in flour. Functional flour may also include flours that are fortified with vitamins, herbs, and even nutraceuticals.
The Functional Flour market is segmented by Source (Cereals and Legumes), Type (Specialty Flour and Conventional Flour), Application (Bakery, Savory Snacks, Soups and Sauces, Ready-to-Eat (RTE) Products, and Other Applications); and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. The report offers the market size and values in (USD Million) during the forecast years for the above segments.
| Source | Cereals | |
| Legumes | ||
| Type | Specialty Flour | |
| Conventional Flour | ||
| Application | Bakery | |
| Savory Snacks | ||
| Soups and Sauces | ||
| Ready-to-Eat products | ||
| Other Applications | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Russia | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | India |
| China | ||
| Japan | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | South Africa |
| Saudi Arabia | ||
| Rest of Middle-East and Africa |
Functional Flour Market Research FAQs
What is the current Functional Flour Market size?
The Functional Flour Market is projected to register a CAGR of 5.11% during the forecast period (2024-2029)
Who are the key players in Functional Flour Market?
Cargill, Incorporated, Archer Daniels Midland Company, Associated British Foods plc, Ingredion Incorporated and Bunge Limited are the major companies operating in the Functional Flour Market.
Which is the fastest growing region in Functional Flour Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Functional Flour Market?
In 2024, the North America accounts for the largest market share in Functional Flour Market.
What years does this Functional Flour Market cover?
The report covers the Functional Flour Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Functional Flour Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
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