Commercial Flour Market Forecasts to 2030 – Global Analysis By Flour Type (Wheat Flour, Non-Wheat Flour and Other Flour Types), Processing Techniques, Application, End User and By Geography

According to Stratistics MRC, the Global Commercial Flour Market is accounted for $49.5 billion in 2024 and is expected to reach $75.1 billion by 2030 growing at a CAGR of 7.2% during the forecast period. Commercial flour is a type of flour produced on a large scale for industrial and retail purposes. Typically made from wheat, it undergoes a milling process that separates the grain's bran, germ, and endosperm. This leaves behind a fine, starchy product used in various food production and baking applications. It is often refined, and can be found in different varieties like all-purpose, bread, or cake flour, each suited to specific needs. Commercial flour is commonly enriched with nutrients such as iron and B vitamins to compensate for losses during processing.

According to this plan, the state-run Food Corporation of India (FCI) will provide wheat from its inventories by inviting tenders and will sell the grain at 23,250 rupees ($275.34) a ton.

Market Dynamics:

Driver:

Rising demand for gluten-free and specialty flours

The rising demand for gluten-free and specialty flours in the market is driven by increasing health-conscious consumers and dietary restrictions such as gluten intolerance and celiac disease. As people seek healthier alternatives, flours made from grains like rice, almond, coconut, and chickpeas are gaining popularity. Additionally, the growing trend of plant-based diets and natural ingredients has fueled the demand for these specialty flours in both food production and baking industries, offering new market opportunities for manufacturers.

Restraint:

Supply chain disruptions

Supply chain disruptions in the market have led to increased production costs, delays, and product shortages. Factors such as transportation bottlenecks, raw material shortages, and labor shortages can significantly affect flour availability, leading to higher prices for manufacturers and consumers. This instability can also impact the quality and consistency of flour products, affecting the bakery and processed food sectors. Additionally, disruptions can hinder international trade, causing supply imbalances and limiting market growth opportunities.

Opportunity:

Growing demand from the bakery and processed food sectors

The growing demand from the bakery and processed food sectors is significantly driving the market. As consumers increasingly seek convenient and ready-to-eat products, flour plays a vital role in meeting the needs of baked goods, snacks, and packaged meals. The rise in popularity of artisanal and health-focused baked goods has also fueled this demand. Additionally, the expansion of fast food chains and processed food products globally further strengthens the need for high-quality, versatile flours in these industries.

Threat:

Fluctuating raw material prices

Fluctuating raw material prices in the market can lead to unpredictable costs for manufacturers, making it difficult to maintain stable pricing for end products. When prices of key ingredients like wheat, rice, or other grains rise, production costs increase, which can squeeze profit margins. This volatility often results in higher prices for consumers, reducing demand. It also hampers long-term planning for businesses, as they struggle to predict costs and set competitive prices amidst market instability.

Covid-19 Impact:

The COVID-19 pandemic had a significant impact on the market, disrupting supply chains, production, and distribution. Lockdowns and labor shortages led to delays in milling and processing, while increased demand for home baking caused a surge in retail flour sales. On the other hand, foodservice industries and bakeries faced closures and reduced demand. The pandemic also highlighted the importance of resilient supply chains, pushing businesses to adapt to changing consumer behaviors and market conditions.

The milling process segment is expected to be the largest market share during the forecast period

The milling process segment is expected to account for the largest market share during the forecast period. The grains are then passed through rollers to break them down into smaller particles. The endosperm is separated from the bran and germ, resulting in white flour. The process also includes sifting, grinding, and sometimes bleaching or enriching the flour. Different grades of flour are produced based on the milling method and the desired end product, such as bread or cake flour.

The bakery products segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the bakery products segment is predicted to witness the highest growth rate. Flour serves as a primary ingredient, varying in type and quality to meet specific baking needs. High-protein flours are typically used for bread, while lower-protein flours are preferred for cakes and pastries. With advancements in baking techniques, bakery products now cater to diverse consumer preferences, such as gluten-free or whole grain options, further driving demand for specialized flour types.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share. The U.S. and Canada are major producers and consumers of flour, with wheat being the primary raw material. The market is characterized by diverse product offerings, including all-purpose, bread, and specialty flours. Growth is influenced by consumer preferences for healthier options like whole grain, gluten-free, and organic flours. Technological advancements in milling processes also play a role in market expansion.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. There's also growing interest in specialty flours, such as gluten-free flour, rice flour, and other alternative grain-based flours, driven by health-conscious consumers and those with dietary restrictions. This segment has witnessed significant growth in countries with an increasing number of health and wellness trends, like Japan and Australia. Additionally, The increasing prevalence of convenience foods, snacks, and ready-to-eat meals has fueled demand for flour in processed food manufacturing.

Key players in the market

Some of the key players in Commercial Flour market include General Mills, Inc., Archer Daniels Midland Company (ADM), Cargill, Inc., Associated British Foods plc (ABF), King Arthur Baking Company, Olam Group, ConAgra Brands, Inc., Bunge Limited, The Wendy's Company, J. G. Boswell Company, The Rahr Corporation, GoodMills Group, Interflour Group, FFM Berhad, Sunrise Flour Mill, Inc. and Amfora.

Key Developments:

In February 2024, Amfora, a company developing products to sustainably nourish the planet and enhance global wellness, announced the launch of the commercial offering of the first generation of the company's ultra-high protein soy flour, texturized vegetable protein, and crisps, which are made up of the company's proprietary soybeans.

In January 2024, King Arthur Baking Co. collaborated with Project Potluck, a nonprofit championing People of Color (POC) in the consumer-packaged goods and food and beverage industries, for the launch of Baking Pitchfest 2024.

Flour Types Covered:
• Wheat Flour
• Non-Wheat Flour
• Other Flour Types

Processing Techniques Covered:
• Milling Process
• Enrichment
• Fortification

Applications Covered:
• Bakery Products
• Confectionery
• Food Processing
• Animal Feed
• Brewery and Distilling
• Other Applications

End Users Covered:
• Commercial Bakers
• Foodservice Providers
• Retail Consumers
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements