Precooked flours have varied applications in food and beverage industry. With the changing market scenario, the food and beverage market are also experiencing a shift in the consumption patterns. Middle-class population adopting a diverse and healthy diet providing growth opportunities for precooked flour market. Moreover, malnutrition prevalence and ongoing programs directed towards tackling this situation have favored use of precooked flours as a nutritional food. Moreover, increasing agricultural trade worldwide is helping manufacturers with raw material availability. For instance, Australia is home to the largest export-oriented agricultural sector with strong growth in food, beverage, and commodity exports to Asia. Australia’s network of free trade agreements (FTAs) provides superior access to the fast-growing Asian region. Besides, comprehensive agreements have recently been negotiated with Japan, Korea, China, and Trans-Pacific Partnership member countries, adding to Australia’s suite of existing FTAs.
Global precooked flours market was valued at USD 12,658.4 million in 2018 and is projected to grow at a CAGR of 10.8% during the forecast period of 2019–2026.
In this study, the precooked flours market is segmented by product type, industry and sales channel.
By product, the market has been segmented into wheat, rice, maize, legume and others. Maize is the second leading flours in the forecast period. This can be attributed to its widespread consumption as staple food in many countries. For instance, maize is one of the staple foods in Africa, Asia, and South America. In 2016–2017, the U.S. exported around 17% of its maize production to over 80 countries. Besides, Mexico (25%), Japan (21%), and South Korea (9%) are the top three corn export destinations of the U.S., the U.S. GRAINS COUNCIL. High consumption of maize in these regions makes them a default choice of precooked corn flour manufacturers in order to target huge consumer base. Maize flour fortification is one of the widely practiced solutions to tackle malnutrition issues in children. It is an efficient, simple, and inexpensive strategy to supply vitamins and minerals to the diets of the large population. As per WHO, malnutrition is still a looming crisis in the developing regions and around 52 million children under the age of 5 are wasted and 155 million are stunted. Apart from this, iron deficiency is another health issue affecting around 2 billion people worldwide, the British Nutrition Foundation.
The Industry segment is expected to register the fastest CAGR over the forecast period. Commercial segment is holding the largest share of 79.4% in 2018. This can be attributed to rapidly expanding bakery industry is offering several opportunities for the market. Recently, St Pierre Groupe, rebranded itself from Carrs Foods, an international branded bakery business. The company received an investment of USD 7.4 million from BGF and partner Lloyds Bank. Moreover, increasing strategic activities among leading manufacturers in the market are offering investing for market expansion. For instance, the partnership between NEO and Paul supported the accelerated roll-out concept in the U.K. Paul is now recognized as one of the best premium bakery brands in London with over 30 outlets across the country.
Global precooked flours market is segmented by the Americas, Asia Pacific, Europe, and the Middle East and Africa.
North America is dominating the global precooked flours market owing to changing market scenario, and shift in the consumption patterns. Besides, modern North American consumers have become more health-conscious than ever before. With the increasing consumption of fast food, the prevalence of obesity in the U.S. is increasing at an alarming rate. During 2015–2016, the prevalence of obesity was stood at 39.8% and affected around 93.3 million of the U.S. adults, the CDC. Currently, around 78 million obese adults are currently living in the U.S., which is higher than any other country in the world. Regional market has been witnessing a considerable rise in the demand for organic food ingredients and products, and the trend is taking hold over modern consumers. In 2017, veganism was a top search trend in Canada. Besides, the preliminary draft of Canada’s new Food Guide released in 2017 by the Canadian government, favors plant-based foods. Moreover, established milling industry in the region is also providing a strong base for the market. For instance, there are around 98 establishments in Canada, out of which 48 are wheat milling establishments and 7 are oat milling establishments.
Europe is the second leading region. Changing dietary preferences, increasing incomes, and shifting preference for value-added products are the primary factors responsible for the market growth in the region. Bread is one of the key bakery products being consumed on a greater extent. For instance, around 69% of the flour produced in the U.K. is used for the manufacturing of bread. Food allergies are quite prevalent in Europe, hence, increasing demand of precooked flours. For instance, around 11–26 million Europeans are estimated to have food allergy, as per the AllergyUK. In addition, people have become more cautious about their food preferences, and are opting for gluten and GMO-free products. Rising trend of veganism in the Europe is also driving the growth of the market. In Germany, veganism has become increasingly popular and it is home for one of the highest vegan products launch in the world. To cater to the growing demand, Germany launched the first vegan supermarket chain, Veganz, in Berlin in 2011. In 2016, around 18% of the worldwide vegan product was launched in Germany, the U.S. Department of Agriculture Foreign Agricultural Service.
In the Middles East, malnutrition has been an alarming crisis and many programs are being conducted to deal with it. For instance, ‘Flour Fortification Initiative’ has been a huge success in the Middle East region for controlling malnutrition. Besides, Oman Flour Mills has begun fortifying their flour with iron and folic acids on a trial basis for a regional workshop held in Oman in October 1996, the WHO. Palestine, Saudi Arabia, and Jordan were the first places to fortify flour with nutrients. Iran is considering adding vitamin D to its standard fortified wheat flour. Many countries like Bahrain, Oman, and Jordan have legislated fortification of the floor with at least iron or folic acid, the United States Department of Agriculture.
In Africa, health and wellness are increasingly expanding their product portfolios in the region. Moreover, the increasing trend of gluten-free, organic, and kosher certified foods among the consumers is adding fuel to the market growth. Factors such as growing application of flour fortification and demand for foreign goods in the region are contributing to the market growth. Acute malnutrition affects around 6 million children in the West and Central Africa, the UNICEF. Many programs are being conducted in the region to provide therapeutic meals for the fast recovery of these children. For instance, ready-to-use Therapeutic Food (RUTF) such as Plumpy’Nut, a fortified peanut butter-like paste, is provided in the region.
Some of the prominent players in the market are Cereal Veneta (Italy), Goya Foods, Inc. (U.S.), Empresas Polar (Venezuela), Agrindustria Tecco srl (Italy), Harinera del Valle SA (Colombia), Herba Ingredients BV (Ebro Foods, S.A.) (the Netherlands), Spiral Foods (Australia), Anto Natural Foods (U.S.)
By Sales Channel