The wheat flour market was valued at US$ 181,377.66 million in 2019 and is projected to reach US$ 219,995.42 million by 2027; it is expected to grow at a CAGR of 2.8% from 2020 to 2027.
The wheat flour market has experienced tremendous growth in the past on the back of the development in food processing technologies and an increase in the demand for vegan products. The upsurge in demand for bakery products, snacks, noodles, and pasta, among others, has also bolstered the wheat flour market growth. Gluten is a naturally occurring protein in wheat, and it is responsible for the shape of the baked goods as it helps make the dough more elastic when kneaded. The amount of gluten may vary according to different varieties of wheat flour available. Low-gluten wheat variety is termed as "soft" or "weak," and the high-gluten wheat variety is referred to as "hard" or "strong." Bread is a part of a wide range of meals and cuisines, and there is a high demand for wheat bread among consumers.
The wheat flour market in Asia Pacific is expected to grow at the highest CAGR during the forecast period. Moreover, Asia Pacific holds the largest share in the global wheat flour market due to the consumption of wheat flour in everyday meals and a large wheat production capacity of the region; China and India are among the leading wheat-producing countries in the world. China dominated the Asia Pacific wheat flour market in 2019 and is projected to lead the market during 2020–2027. The growth of the market in China is mainly attributed to the existence of well-established food and beverages sector and increasing spending by companies on the development of innovative wheat flour products. With the increasingly busy lifestyle of consumers in Asian countries such as Australia, China, and India, they are gradually shifting their preference toward convenience food, which reduces their cooking time and provides them instant food. Wheat flour is used in various convenience food products such as bakery products, snacks, noodles, pasta, among others.
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The COVID-19 outbreak, which began in Wuhan (China) in December 2019, has spread around the globe at a fast pace. As of August 2020, the US, Russia, India, China, Italy, Spain, France, and Germany are among the worst-affected countries in terms of positive cases and reported deaths. According to the WHO figures updated in August 2020, 17,660,523 confirmed cases and 680,894 deaths have been reported globally. The outbreak has affected economies and industries due to lockdowns, travel bans, and business shutdowns. Food and beverages is one the world’s major industries suffering serious disruptions such as supply chain breaks, technology events cancellations, and office shutdowns as a result of this pandemic. China is the global manufacturing hub and is the largest raw material supplier for various industries; however, it is also one of the worst-affected countries by the COVID-19 pandemic. The lockdown of various plants and factories in China is affecting the global supply chains and adversely impacting the manufacturing and sales of various types of wheat flour. The overall market collapse due to COVID-19 is also affecting the wheat flour market growth due to shutting down of factories, obstacle in supply chain, and downturn in world economy.
Market Insights
Rise in Demand for Convenience Food
The demand for wheat flour is increasing due to growing consumer preference toward processed or convenience foods. Wheat flour is a vital ingredient in various convenience food items, such as bakery and confectionery products, snacks, and ready-to-eat foods. The flour improves the texture and profile of food product. Consumers in developed and developing countries are more inclined toward convenience foodstuff due to growing food & beverages industry and improving economic conditions. Also, with the diversification of distribution channels, retail outlets and supermarkets have also started offering convenience food. Further, the change in working demographics and busy lifestyle are among the other factors promoting the demand for convenience food items. The urbanization of society has resulted in the prominence of convenience foods in the modern diet. The availability of organic wheat flour expands its applications in bakery and confectionery, and other industries. Further, the increase in population, rising economic standard, hike in disposable incomes, and diversification in food habits are propelling the demand for convenience food. To meet these demands, companies are coming up with the improved quality of wheat flour and opting for efficient distribution channels to serve the wider customer base.
Product Type Insights
Based on product type, the wheat flour market is segmented into all-purpose flour, bread flour, semolina and durum flour, whole wheat flour, and others. The bread flour segment accounted for the largest share in market in 2019, and the whole wheat flour segment is expected to register the fastest CAGR during 2020–2027. The all-purpose flour is prepared from the combination of hard and soft wheat in 4:1 ratio, and it is considered to be the most popular form of wheat flour worldwide. It is obtained from the finely ground part of the wheat kernel known as the endosperm, which gets detached from the bran and germ at the time of milling process. All-purpose flour has rich nutritional profile and is a rich source of vitamins such as niacin, riboflavin thiamin and folic acid (vitamin B family), and minerals such as iron. All-purpose wheat flour is commercially available in bleached and unbleached forms. During bleaching, chemicals are used as a preservative to protect the flour from developing an off flavor or from spoiling after a short period. All-purpose flour is ideal for the preparation of all types of baked goods, including cakes, cookies, pizza, yeast breads, biscuits, and muffins, and it is also used to provide thick consistency to gravies and sauces. It is also used as a coating agent in meat, vegetables, and other products while frying or sautéing.
End User Insights
Based on end-user, the wheat flour market is segmented into residential and commercial. The commercial segment accounted for the largest share in the market in 2019, and the residential segment is expected to register the highest CAGR during 2020–2027. With the growth of food processing industries as well as increasing demand for healthy and innovative food products, the demand for commercial purpose wheat flour has increased manifolds. The commercial segment is further segmented into HORECA, institutional and food service, and other manufacturers. The commercial purpose flour mills process wheat flours with a small number of additives. Other than this, bleaching agents such as benzoyl peroxide and oxidizing agents such as potassium bromate and chlorine oxide are also added while processing to make the flour look white. Commercial applications of wheat flour include food and bakery items such as breads, cakes, cookies, pastries, muffins, and cookies. Apart from this, it is extensively used in preparation of snacks, noodles, pasta, etc. Wheat flour also finds application in a biofuel industry and in feeding purpose. The US Department of Agriculture has adopted several standards in terms of testing of wheat flour for commercial use. Such standards ensure purity and detection of any adulterations present in terms of wheat flour market.
Application Insights
Based on application, the wheat flour market has been segmented into bread, bakery products, noodles and pasta, and others. The bread segment accounted for the largest share in the global wheat flour market in 2019, and bakery products segment is expected to register the highest CAGR during 2020–2027. Wheat flour is the most common base ingredient used in bread preparation. Wheat flour consists of gluten that is considered to be key source of protein and a significant ingredient in yeast-leavened breads. Gluten is a rubbery substance that helps provide structure and elasticity to the bread dough by trapping air and gas molecules; this action helps enhance the texture of the baked items. Wheat flour such as all-purpose flour, white bread flour, fine French bread flour, high gluten flour, and semolina flour are significantly used in preparation of different varieties of breads. These flours can be used alone or can be blended with other types of wheat flours, depending on the type of bread being developed. The rise in the consumption of bread as a part of breakfast, along with rapid innovations in the same, is likely to boost the demand for wheat flour in bread-making.
Distribution Channel Insights
Based on distribution channel, the wheat flour market has been segmented into hypermarket/supermarket, convenience stores, online, and others. The hypermarket/supermarket segment accounted for the largest share in the global wheat flour market in 2019, and the market based on other channels is expected to grow at the fastest CAGR during the forecast period. Manufacturers opt for various channels of distribution to make their products easily available to consumers. Among several distribution channels, supermarkets and hypermarkets have gained relatively greater importance. Producers sell their products to distributors who provide these products to hypermarkets and supermarkets, depending upon their demand. This proves to be beneficial as the products get a good sales image in these stores; moreover, there would be no wastage of products as the manufacturing is undertaken only on demand and in specific numbers. Apart from this, these stores simultaneously present a large variety of products to buyers, which allows easy comparison among them and accessibility to several brands. The sales of wheat flour through the hypermarkets and supermarkets are growing at high pace. The increasing number of hypermarkets and supermarkets has positively impacted this rise. Wheat flour types are extensively available in the supermarkets and hypermarkets around the globe.
Mergers and acquisitions, and research and development are commonly adopted strategies by companies to expand their footprint worldwide. The wheat flour market players such as Archer Daniels Midland Company, FoodMaven, and ITC Limited have been implementing these strategies to enlarge the customer base and to gain significant market share in the world, which also allows them to maintain their brand name globally. For instance, in July 2019, Aashirvaad, under ITC Limited, announced the launch of a new range comprising Gluten-Free Flour, Ragi Flour and Multi Millet Mix Flour under the umbrella of Aashirvaad Nature’s Super Foods. In February 2020, FoodMaven announced the company’s partnership with The Annex by Ardent Mills (The Annex), a business unit of Ardent Mills, LLC, to sell its transitional wheat flour to FoodMaven’s foodservice customers. In September 2019, Archer Daniels Midland Company opened its new, state-of-the-art flour mill in Mendota, Illinois. It is the largest flour mill ever built in North America. The new, 30,000-cwts facility can mill spring, winter, and soft wheat varieties plus two types of whole wheat.
Wheat Flour Market Regional Insights
The regional trends and factors influencing the Wheat Flour Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Wheat Flour Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
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Wheat Flour Market Market Report Scope
Report Attribute | Details |
---|---|
Market size in 2019 | US$ 181.38 Billion |
Market Size by 2027 | US$ 220 Billion |
Global CAGR (2019 - 2027) | 2.8% |
Historical Data | 2017-2018 |
Forecast period | 2020-2027 |
Segments Covered |
By Product Type
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
Market Players Density: Understanding Its Impact on Business Dynamics
The Wheat Flour Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Wheat Flour Market are:
- Archer Daniels Midland Company
- Acarsan Holding
- Allied Pinnacle
- Ardent Mills
- General Mills Inc
Disclaimer: The companies listed above are not ranked in any particular order.
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Global Wheat Flour Market – by Product Type
- All-Purpose Flour
- Bread Flour
- Semolina and Durum Flour
- Whole Wheat Flour
- Others
Global Wheat Flour Market – by End-User
- Residential
- Commercial
Global Wheat Flour Market – by Application
- Bread
- Bakery Products
- Noodles and Pasta
- Others
Global Wheat Flour Market – by Distribution Channel
- Hypermarket/Supermarket
- Convenience Stores
- Online
- Others
Company Profiles
- Archer Daniels Midland Company
- Acarsan Holding
- Allied Pinnacle
- Ardent Mills
- General Mills Inc
- George Weston Foods Limited
- ITC Limited
- The King Arthur Baking Company
- KORFEZ Flour Group
- Manildra Group
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type ; Application ; End User ; Distribution Channel , and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Commercial segment accounted for the largest share of the global wheat flour market in 2019. High volume consumption of wheat flour in the commercial sector, including food service outlets as well retail food manufacturing sector has aided the growth of the commercial segment. Moreover, increasing number of bakeries and confectioneries along with the demand for freshly baked bread at cafes have also propelled the growth of wheat flour market.
Asia Pacific region accounts for a significant share of the global population and the rising disposable incomes and urbanization have contributed to the growth of the wheat flour market in the region. Increasing number of restaurants and cafes coupled with the demand for exotic cuisine in the region have aided the demand for wheat flour in the region.
All-purpose flour has been growing in popularity in recent years. It is obtained from the finely ground part of the wheat kernel known as the endosperm. All-purpose flour has a rich nutritional profile being a rich source of vitamins such as niacin, riboflavin thiamin and folic acid (vitamin B family), and also other minerals such as iron.
The major players operating in the global wheat flour market are Archer Daniels Midland Company; Acarsan Holding; Allied Pinnacle Pty Limited; Ardent Mills LLC; General Mills Inc.; George Weston Foods Limited; ITC Limited; The King Arthur Baking Company; KORFEZ Flour Group; and Manildra Group among many others.
Wheat flours are widely consumed across the globe, within the food service sector as well as across households. Some of the product types are all-purpose flour, semolina and durum flour, whole-wheat flour, bread flour, and others.
Residential segment of the wheat flour market is expected to witness significant growth over the forecast period. Increasing number of home bakers increasing interest in cooking have aided the demand for wheat flour in the residential segment. Moreover, the COVID-19 pandemic has also increased the demand for ingredients in the residential sector as people were experimenting with cooking and baking as most of the countries had announced lockdowns and restrictions on travel. Hence, the residential segment of the global wheat flour market is expected to witness significant growth in the coming years.
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The List of Companies - Wheat Flour Market
- Archer Daniels Midland Company
- Acarsan Holding
- Allied Pinnacle
- Ardent Mills
- General Mills Inc
- George Weston Foods Limited
- ITC Limited
- The King Arthur Baking Company
- KORFEZ Flour Group
- Manildra Group