As
companies engaged in the production of flour offer similar products
with very limited differentiation attributes, the degree of
competition in the global flour market is significantly high, says
Transparency Market Research in a new study. To maintain a strong
hold in the market and expand their business, the established flour
manufacturers are focusing on acquiring smaller companies or entering
into joint ventures. The leading players in the global
flour market are Ardent Mills Canada, Cargill, Associated
British Foods plc, ConAgra Foods, Archer Daniels Midland Company,
Hindustan Unilever Limited, ITC Limited, Hodgsmon Mill, Wilmar
International Limited, and White Wings. Of these, ConAgra Foods,
Inc., Archer Daniels Midland Company, and Cargill together accounted
for 49% of the overall revenue in 2013 in the global flour market.
Given
the ubiquity of flour as a daily consumable, many local players are
compelled to compete with international companies with wider product
variants and low cost. The leading companies are aiming at product
and packaging innovation to enable consumers to differentiate their
products from the available variants. As a result of this, the
competition in the global flour market is expected to intensify
further in the coming years.
The
global flour market is anticipated to exhibit a CAGR of 3.8% from
2014 to 2020. In 2013, the global flour market was worth US$182.7 bn
and is projected to touch a valuation of US$245.8 bn by the end of
2020.
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Rising
Demand for Bakery Products to Drive Sales of Flour
With
the increase in the demand for bakery products across the world, the
demand for good quality flour has also taken a boost. “As flour is
the most important ingredient used in bread and other baked sweets
and savories, the rise in the demand for baked goods is likely to
cause a spike in the sales of flour in the coming years,” states a
TMR analyst. The consumption of baked products is significantly high
in Europe, India, North America, North Africa, and the Middle East.
Among
all flour varieties, wheat flour is the most consumed type in these
regions. Moreover, the emergence of cafes and the growing fast food
sector is likely to further augment the demand of flour. Grocery and
supermarkets are also likely to aid the sales of flour as
manufacturers enhance their retail options to expand their reach in
the market.
Price
Volatility of Raw Materials to Inhibit Growth of Flour Industry
The
price volatility of raw materials used in the production of flour is
likely to hamper in the progress of the flour industry. As a result
of low price margin and volatility in the prices of raw materials,
consumers are shifting their focus towards the consumption of value
added bakery products. Due to low yield and scarcity of row crops,
the cost of raw materials is likely to rise resulting to an increase
in the price of flour. To survive this price volatility, companies
are resorting to risk management strategies.
Non-food
Application of Flour to Provide Lucrative Growth Opportunities to
Manufacturers
Researchers
across the world are experimenting with the use of flour in
biomaterials. As a result of strict environmental regulations imposed
by governments across the world regarding the use of plastics and
curbing global warming, the demand for biodegradable products is
likely to increase in the coming years. With a growing interest in
renewable and eco-friendly products, the use of flour in the
formulation of biodegradable materials is likely to provide
manufacturers of flour with future growth prospects. Moreover, starch
based non-food products such as starch-based packaging, starch-based
adhesives, and soil conditioners are anticipated to gain popularity
over the coming years
Asia
Pacific is anticipated to lead the global flour market by 2020 in
terms of consumption with a projected volume share of 66,611.8 kilo
tons in the year. Bread and bakery products are likely to emerge
dominant in the applications segment with a volume of 63,544.9 kilo
ton by 2020.
The
review is based on the findings of a TMR report titled, “Flour
Market - Global Industry Analysis, Size, Share, Growth, Trends and
Forecast 2014 - 2020.”
The
flour market has been segmented as follows:
Flour
market, by raw material:
- Maize (Including corn flour)
- Rice
- Wheat (Including durum flour)
- Others (Including oat flour, rye flour, etc.)
Flour
market, by Application:
- Noodles and pasta
- Bread and bakery products
- Wafers, crackers and biscuits
- Animal feed (Including pet food)
- Non-food application (Including bioplastics, biomaterials, glue, etc.)
- Others (Including roux, baby food, etc.)
Flour
market, by Technology:
- Dry technology
- Wet technology
Flour
market, by geography:
- North America
- Europe
- Asia Pacific
- Rest of the World (Latin America, Middle East and Africa)
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