The global flour market was valued at an estimated US$199 billion in 2015 and is predicted to grow by over 4% CAGR to US$255 billion by 2020. However, not all geographies and segments are experiencing such exponential growth.
Global Flour Industry Growth Dynamics
The global market for flour continues to grow with a forecasted value of US$255 billion by 2020. However, changing consumption dynamics such as increased demand for gluten-free food products has disrupted more developed markets and impacted negatively on sales of conventional flour products. This has resulted in a reduction of 2% -30% in developed consumer markets such as the UK, France, Germany, and Russia. Other parts of the world have registered little or no growth in demand – see figure 1 on the following page.
However, there is one region of the world which has bucked this trend and that is Asia, with several large-scale flour mills increasing capacity to meet growing demand on the back of rising populations across the region.
Also, initiatives such as the leading flour miller in China introducing cup noodles, has caused a noticeable positive shift in demand and has been a catalyst for increasing flour imports into the country.
Flour industry insights
At Farrelly Mitchell, our team of agrifood specialists support businesses across the agrifood sector, including milling, processing & manufacturing, and food ingredients & alternative proteins, helping them to adapt to new trends, improve supply chain optimisation, and innovate product offerings. Our tailored strategies enable clients to thrive in fluctuating markets by identifying growth opportunities, ensuring regulatory compliance, and enhancing operational efficiency.
