Asia-Pacific Flour Market Outlook, 2029

Asia-Pacific Flour Market Outlook, 2029

The Asia Pacific flour market stands as a dynamic and multifaceted landscape, intricately woven into the rich tapestry of the region's culinary traditions, economic dynamics, and agricultural heritage. Spanning diverse countries with varying levels of economic development and cultural influences, the market pulsates with vitality, propelled by a burgeoning population, rapid urbanization, and shifting dietary preferences. The Asia-Pacific area is a melting pot of innovation and tradition in flour production and consumption, from the vibrant street markets of Southeast Asia to the highly developed flour mills of Japan and South Korea. Grains such as wheat, rice, and maize are ground into a wide range of flour variations, each with a distinct flavour profile and culinary use that reflects the region's rich culinary history. Against the backdrop of globalisation and evolving consumer preferences, the Asia Pacific flour market is witnessing transformative shifts, with an increasing emphasis on sustainability, health consciousness, and technological advancements reshaping the contours of the industry. As the region continues to chart its course towards economic prosperity and cultural exchange, the Asia-Pacific flour market stands poised at the nexus of tradition and innovation, offering a tantalising glimpse into the future of food. The Asia-Pacific market is seeing an increase in demand for specialty flours due to consumers' increased health and wellness consciousness. These flour variants include organic, fortified, and gluten-free options. In many parts of Asia and the Pacific, traditional milling practices coexist alongside modern industrial milling operations, with small-scale flour mills still playing a vital role in supplying local communities with freshly milled flour.

According to the research report, “Asia Pacific Flour Market Outlook, 2029,” published by Bonafide Research, the Asia Pacific Flour market is anticipated to grow with more than 7% CAGR from 2024–2029. Many of the world's population resides in the Asia-Pacific region, and as long as population growth trends continue to be positive, there will be a commensurate increase in demand for basic foods like flour. Rapid urbanisation across Asia-Pacific countries is changing dietary habits and lifestyles. Urban consumers often have busier schedules and seek convenience foods, including bakery products and processed foods that use flour as a key ingredient. There is a move towards Western-style diets and an increase in the use of bread goods, pasta, noodles, and other flour-based meals as wages grow and lifestyles change. Many Asian countries have a strong heritage of using flour in their cuisine. Traditional foods like bread, noodles, roti, and dumplings remain mainstays in many of the regional cuisines, which supports the steady need for flour. Ensuring food security remains a priority in many Asia-Pacific countries. Flour, as a staple food ingredient, is a key component of government food security programmes and subsidised food distribution systems. Increasing awareness of health and wellness is driving demand for specialty flours, including whole-grain, gluten-free, and organic varieties. Consumers are seeking healthier alternatives to conventional wheat flour, leading to the expansion of niche flour markets. The growth of the food processing industry in Asia Pacific is driving demand for flour as an essential ingredient in a wide range of processed foods, including snacks, baked goods, ready-to-eat meals, and confectionery products.

Market Drivers

• Traditional Culinary Practices: A key component of many regional recipes in the Asia-Pacific region is flour. For example, wheat flour is required to produce roti (flatbread) in India, while it is used to manufacture noodles and dumplings in China. Since these classic recipes have been enjoyed for many years and are still a major component of everyday meals, there will always be a need for flour. Dishes made with flour frequently have cultural significance and are essential to religious rites, celebrations, and social events. For instance, families join together to make dumplings during the Lunar New Year celebrations in many East Asian nations; the dough for the dumplings requires wheat. These customs support the market expansion of flour and enhance consumer demand for it.

• Industrialization of Food Processing: Convenient meal choices are in greater demand as urbanisation and busy lifestyles increase. A vital component of many processed goods, such as bread, pasta, snacks, and ready-to-eat meals, is flour. Because these convenience meals can now be produced in large quantities thanks to modern food processing, there is a greater need for flour. Strict quality control measures are used by industrialised food processing plants to guarantee uniformity and safety in the flour manufacturing process. Increased customer confidence and assurance over the dependability of flour-based goods results in increased levels of consumption.

Market Challenges

• Consumer Preferences and Cultural Factors: The Asia-Pacific region is incredibly diverse, with varying dietary preferences influenced by cultural, religious, and regional factors. For example, in countries like India and Indonesia, rice is a dietary staple, which reduces the demand for wheat flour compared to regions where wheat-based products are more prevalent. With increasing health consciousness, consumers are seeking healthier flour alternatives, such as whole-grain or gluten-free options. Meeting these evolving preferences requires flour manufacturers to invest in product innovation and marketing strategies tailored to health-conscious consumers, which can be challenging.

• Trade Barriers: Some countries impose tariffs and import restrictions on flour and flour products to protect domestic producers or for regulatory reasons. These trade barriers can increase the cost of imported flour, making it less competitive in the market and limiting consumer choices. Currency fluctuations can affect the competitiveness of flour exports and imports, as changes in exchange rates impact the cost of imported raw materials and the price competitiveness of exported flour products. This volatility adds another layer of risk for businesses operating in the Asia-Pacific flour market.

Based on the report, the types are segmented into wheat, maize, rice, oats, and others. In terms of the report, nature is segmented into conventional and organic.

Wheat contributes the highest market share; wheat has been cultivated and consumed for a very long time in several regions of Asia and the Pacific. In nations such as Bangladesh, India, Pakistan, and Nepal, wheat is an essential component of traditional cuisines and is a staple food. Everyday foods like roti, chapati, naan, and paratha need wheat flour as a main component. In some cases, government policies and subsidies may also favour wheat production and consumption, further bolstering its position in the flour market. Additionally, the economies of scale associated with wheat cultivation and milling make wheat flour more cost-effective compared to other grain flours in certain regions. Despite the increasing popularity of alternative flours such as rice flour or corn flour, wheat flour remains a preferred choice for many consumers in the Asia-Pacific region due to factors like taste, texture, and familiarity with traditional wheat-based dishes. Furthermore, organic flour is growing in the market. As opposed to regular flour, organic flour is frequently positioned as a premium product with a greater perceived value. Because of its higher quality, ethical production methods, and claimed health advantages, consumers are prepared to pay a premium price for organic flour, which propels market growth and profitability for organic flour manufacturers. The growth of the organic food industry is not limited to the Asia-Pacific region but is part of a global trend towards organic and sustainable consumption. As consumers become more connected through global networks and media channels, they are influenced by trends and developments in other regions, further fueling the demand for organic flour in the Asia-Pacific market.

According to the report, the market is bifurcated into bread and bakery products, pasta and noodles, snacks, baby food, animal food, and others. Furthermore, the sales channels are divided into direct and indirect.

In the region where snacks contribute to the market, people of all ages love the rich and varied snack cultures found in the Asia-Pacific region, which include a broad range of savoury and sweet snacks. The demand for flour in the area is influenced by the fact that these snacks frequently use flour as the main component or as a coating for frying or baking. Street food is a prominent aspect of culinary traditions in many Asia-Pacific countries. Fried snacks such as pakoras in India, tempura in Japan, and spring rolls in China often use flour-based batter or dough, making flour a key ingredient in street food preparation. Convenient and portable snacks that can be eaten on the move are becoming more and more in demand as a result of the fast-paced lifestyles that are common in Asia-Pacific cities. This requirement is met by flour-based snacks like cookies, crackers, and pastries, which increase flour consumption in the snack sector. Dough or batter made of flour is used to make a lot of the traditional treats found in Asia-Pacific nations, such as rice cakes in Korea, dumplings in China, and samosas in India. These deeply ingrained cultural delicacies are savoured on special occasions as well as during festivals and festivities, which helps to sustain the need for flour. In terms of the indirect sales channel, the Asia-Pacific area is large and varied, consisting of many nations with different customs and food habits. Supermarkets, hypermarkets, convenience stores, and internet platforms are examples of indirect sales channels that offer more market access and enable flour manufacturers to reach a larger customer base that spans various demographic groups and geographic areas. Rapid urbanisation in the Asia-Pacific region has led to changes in consumer lifestyles and shopping habits. Urban consumers often prefer the convenience of one-stop shopping destinations like supermarkets and hypermarkets, where they can find a wide range of food products, including flour, under one roof. Indirect sales channels cater to this demand for convenience and accessibility.

Based on the report, the major countries covered include China, Japan, India, Australia, South Korea, and the rest of Asia Pacific.

India contributes a significant market share, and wheat holds immense cultural and dietary significance in India. Wheat-based foods such as chapati, roti, naan, and paratha are staples in Indian cuisine, consumed daily by millions of people across the country. This cultural preference for wheat-based foods contributes to a consistent demand for flour. Traditional Indian culinary practices heavily rely on flour as a primary ingredient. From savoury dishes like samosas and pakoras to sweet treats like jalebi and gulab jamun, flour is used in a diverse array of dishes, reflecting India's rich culinary heritage and regional diversity. Furthermore, a record 105 million metric tonnes of wheat were produced in the July–June crop years of 2022–2023. To encourage the growth of wheat and the manufacturing of flour, the Indian government offers assistance and subsidies to farmers and flour millers. Demand is also stimulated by the fact that millions of Indian families have access to reasonably priced wheat flour thanks to subsidised food distribution programmes like the Public Distribution System (PDS). India's urban population is expanding and consuming more processed flour-based goods and convenience meals as a result of the country's increasing urbanisation. The demand for packaged flour products, bakery goods, snacks, and convenience meals is driven by rising disposable incomes in metropolitan areas, which supports market expansion.

Companies launch new products to increase their market penetration. About 38% of the studied strategies were product launches in the flour industry. Bread & bakery products, noodles & pasta, animal feed (including pet food), wafers, crackers & biscuits, non-food applications (including bio-plastics, biomaterials and glue) are gaining increased traction across world, which has led to increased number of flour manufacturers. Key players such as Ardent Mills, Archer Daniels Midland Co., Associated British Foods plc, ConAgra Foods, Inc., General Mills Inc., Hindustan Unilever Limited, Willmar International Limited, and Cargill enhance their product portfolios by launching flour with different qualities for different applications. For instance, in 2016, Ardent Mills announced its intent to acquire the Mondelz Canada flour mill, located in Mississauga, Ontario, Canada. The mill produces hard and soft wheat flour for its Canadian bakeries and a number of food manufacturing customers. The transaction is expected to close in the next few weeks. In addition, in 2015, Ardent Mills, the premier flour-milling and Ingredients Company, partnered with the Colorado Rapids of Major League Soccer (MLS) for a season-long giving program to benefit Food Bank of the Rock. Increased number of consumers is on the lookout for healthier foods that are made with natural ingredients, and have a good taste. ADM is already helping customers meet that growing demand with its comprehensive portfolio of ingredients and flavors. Currently, it is expanding its portfolio even further by offering customers worldwide with a wide array of great stevia and monk fruit sweeteners. They are pleased to partner with GLG, which has a demonstrated advantage in developing non-GMO stevia varietals and a pipeline of future innovative products.

Recent Developments

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Flour market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Wheat
• Maize
• Rice
• Oats
• Others (Chickpea flour, Lentil flour, Coconut flour, Almond flour)

By Nature
• Conventional
• Organic

By Application
• Bread and Bakery Products
• Pasta and Noodles
• Snacks
• Baby Food
• Animal Food
• Others

By Sales Channel
• Direct
• Indirect

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Flour industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
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