Functional Flour Market

Functional Flour Market Outlook (2023-2033)

Worldwide demand for functional flour is expected to increase rapidly at a CAGR of 7.5% from 2023 to 2033. In 2023, the global functional flour market stands at US$ 45 billion and is estimated to reach a market size of US$ 93 billion by the end of 2033.

Demand for cereals is anticipated to evolve at the highest CAGR through 2033. One of the main factors in the popularity of cereals is their usage in a variety of bakery goods because of their unique characteristics, including their ability to create structures and absorb lipids.

Functional flour is modified wheat or non-traditional flour that advertises improved health advantages over and beyond those from the flour's natural components. It is a unique class of hydrothermally heated products for use in a range of food and beverage manufacturing processes.

The enhanced nutritional properties and health advantages of functional flour are created during manufacturing and processing. Less gluten is present in products derived from cereals such as maize, rice, and wheat than it is in traditional wheat flour.

Functional flour is chosen over traditional product alternatives because of its health advantages and customers' growing awareness of their health. The industry expansion is mostly caused by rising consumer spending and favorable government rules implemented to encourage the use of healthy products.

Additionally, enriched flour containing vitamins, herbs, and even nutraceuticals may be considered functional flour. For essential nutrients, consumers everywhere are attempting to incorporate a combination of grains, cereals, and lentils into their regular diets.

To improve the texture of some food products, functional flour is utilized as a flour treatment agent. It also possesses binding characteristics such as hot binding and cold binding. Functional flour is divided into many varieties based on the raw material used. A functional flour that has undergone special hydro-thermal post-treatments, such as extrusion, thin layer drying, or roller drying, to improve its nutritional benefits. The viscosity of the functional flour is one of the factors that affect this alteration.

Consumers' increasing health consciousness is causing them to consume healthier diets and seek more high-end food items, which is accelerating market growth. The market is further impacted by the rise in activities to promote functional flour as well as the surge in consumption of nutrient-dense, convenient, and fortified food products.

The market is positively impacted by government organization demands for food fortification, rising disposable income, increased consumer awareness of health, and surges in food spending. The rise in demand for healthy low-fat substitutes creates lucrative prospects for market participants during the projection period. Initiatives by governments and associations across the globe in the direction of promoting the consumption of functional flour are complementing the flour market growth.

Due to people's busy lifestyles and growing knowledge of the health advantages of certain meals, the market is expected to rise as a result of the rising demand for nutrient-enriched foods. Due to consumer interest in nutrition and health, the market for functional foods has increased. All industrialized countries worldwide are seeing an increase in the prevalence of obesity.

Customers are therefore more likely to choose foods with functional components to lower their chance of developing specific illnesses such as obesity, weight loss, diabetes, and cardiovascular diseases. Such health disorders are more common now than ever before due to hectic lifestyles and rising stress.

People generally have a habit of eating three to four times every day. The health of the population has suffered as a result. Smaller meals are becoming more popular throughout the day as a result of rising awareness and changes in eating habits. These elements have encouraged the use of nutritious foods and substituting meals with energy or protein bars, biscuits, and snacks.

Children love the expanding trend of on-the-go snacking because they need frequent meals, while adults like them because of their busy schedules. Other elements that are boosting market expansion include rising disposable income, ease of transportation, and rising health concerns.

Report Attributes	Details
Functional Flour Market Size (2023)	US$ 45 Billion
Projected Market Value (2033)	US$ 93 Billion
Global Market Growth Rate (2023-2033)	7.5% CAGR
Market Share of Specialty Functional Flour	50%
Key Companies Profiled	Cargill Inc. Limagrain General Mills Shipton Mill Bunge Limited Conagra Brands, Inc. The Hain Celestial Group, Inc. General Mills Inc. ITC Limited Associated British Foods Plc Bos’s Red Mill

What’s Driving High Consumption of Functional Flour across Regions?

“Paradigm Shift to Healthy Foods Creating Significant Opportunities for Functional Flour Producers”

Rising gravitation toward health & wellness and augmented consumption of health-benefiting foods is creating sustained opportunities for the manufacturers of functional flour. Consumers across the globe are adhering to healthy diets inclusive of cereals, grains, and lentils to meet their nutritional requirements. This, in turn, is creating significant incremental opportunities for functional flour providers.

Increasing incidences of gluten intolerance are also inducing shifts to non-wheat-based and enriched flour, thereby influencing market expansion. Moreover, increasing consumer propensity for ready-to-eat bakery foods that are available in multigrain variants is also creating favorable grounds for the global market.

“Evolving Perceptions of Clean Label Continue to Push Functional Flour Adoption”

As the feature of clean labels is mainstreaming across multiple countries, consumer expectations continue to evolve. Amid this dynamic landscape, food producers are vying to continuously innovate and keep up with the evolving trends to create distinguishable products. The evolution of ‘clean label’ is acting as a key differentiator for food manufacturers to enhance perceptions of their offerings for bolstering consumer confidence.

In line with the clean label trend, food suppliers are including flour variants in their products that align well with consumers’ consideration of healthy ingredients, providing a fillip to the adoption of functional flour. Food manufacturers are incessantly switching to functional flour for boosting the credibility of their product labels, which in turn helps them make their offerings distinguishable on the market shelves.

What Could Inhibit Functional Flour Demand Growth?

“Strict Government Regulations and Raw Material Price Fluctuations”

The main issues that are anticipated to impede the market growth include strict government restrictions and labeling rules, particularly for gluten-free and health claims. The market is hampered by a lack of technological resources and infrastructure in emerging economies.

The industry expansion is anticipated to be constrained by the irregular raw material supply caused by shifting climatic conditions as well as price fluctuations.

How Can New Entrants Increase their Revenue Share?

“Start-ups Concentrating on Introduction of Gluten-free Flour”

The essential amino acids found in wheat are given to the body as the building blocks of protein. Gluten avoidance is preferred by those with celiac disease. This substitute flour lacks the important amino acids found in wheat flour. As a result, new companies are creating flour from underutilized grains to offer consumers a viable, amino acid-rich, gluten-free option.

• Sana, a British start-up, offers gluten-free food made from sustainable, low-impact crops. The company produces grain-free meals from underutilized crops such as cassava and coconut, which require less water to grow and are rich in key amino acids. It offers tortillas and other snacks made with coconut flour as a gluten-free snack option. It uses post-consumer recycled materials for packaging in addition to recyclable tortilla bags.

Which Region Holds a Leading Position in the Global Functional Flour Industry?

“Growing Consumption of Conventional Flour Driving Market Growth in North America”

North America is predicted to hold 40% share of the global market because of its growing population of gluten-intolerant people and health-conscious consumers. Growing consumption of conventional flour and rapid expansion of the processed food industry are driving

Country-wise Insights

What are the Future Opportunities for Functional Flour Suppliers in the U.S.?

“Rise in Nutritive Convenience Food Demand in the U.S.”

Granola/Muesli bars and other food products are increasingly being fortified in the U.S. market with omega-3 fatty acids, calcium, fiber, and other nutrients.

The market is being driven by the rise in the consumption of nutritive convenience foods and growing fiber-rich flour demand.

Why Will Germany Continue to Lead Demand for Functional Flour?

“Constant Innovations in Manufacturing Process of Functional Flour”

Market growth in Germany is attributed to the increased consumer knowledge of the food product's composition. Because the healthcare spending trend is increasing in the country, people are turning to preventive healthcare practices such as eating a healthy diet. The need for food products high in protein and nutrients has, however, increased as western culture becomes more popular.

Continuous innovation and improvement in the manufacturing process of functional flour are anticipated to accelerate market expansion in Germany.

What is Boosting Sales of Functional Flour in Japan?

“Well-established Packaging Sector in Japan”

The easy accessibility of the product, high product efficiency awareness, expanding gluten-free and clean label trends, and growing need for premium products all contribute to market growth in Japan.

The market would be fueled by the availability of raw materials, a well-established packaging sector, a large population, and the rising demand for functional flour in the bakery industry.

Category-wise Insights

Which Type of Functional Flour Will See Higher Demand Growth?

“Huge Demand for Specialty Flour in Bakery Items”

Based on type, the market is segmented into fortified functional flour, pre-cooked functional flour, specialty functional flour, and others. At present, specialty functional flour accounts for 50% share of the global market.

Specialty flour is widely used in the baking business, and there is an increasing need for a wide range of specialty bread items. Bread, cakes and pastries, donuts and rolls, cookies, and other bakery goods are all made with specialty flour.

Specialty flour can provide nutritional advantages to consumers. The rising demand for specialty flour in bakery items is driving market growth.

Which Application is Dominating in Terms of Revenue Generation?

“Functional Flour Gaining Traction in Ready-to-eat Food Products Owing to its Accessibility and Ease of Use”

The market is classified into bakery products, soups & sauces, ready-to-eat products, and others based on application. The product has a better moisture retention capacity, which is advantageous when preparing ready-to-eat products. Because of the product's accessibility and ease of use, ready-to-eat food products are predicted to boost market growth.

The market is expected to develop as a result of an expanding working population and an increasing proportion of women in the workforce. There is an increasing need for ready-to-eat foods to save time due to a growing working population and the lack of time available for breakfast or meals. Due to the increased demand for ready-to-eat food worldwide, major market participants introduced novel products to attract consumers.

Competitive Landscape

The most common approach used by market participants to increase their visibility and portfolio of offerings is product innovation and development, which is followed by mergers and acquisitions and market growth. Ingredients that lengthen the product's shelf life are a top priority for manufacturers.

Food and beverage companies have started releasing multipurpose clean-label flour in recent years to capitalize on the appeal of clean labeling.

For instance :

• In 2021, a maltodextrin replacement made from rice flour was introduced by Cargill. The new soluble SimPure rice flour from Cargill is a clean-label product that resembles maltodextrin in terms of flavor, appearance, and usefulness.

Key Segments of Functional Flour Industry Research

• By Source :

  • Cereals
  • Legumes

• By Type :

  • Fortified Functional Flour
  • Pre-cooked Functional Flour
  • Specialty Functional Flour
  • Others

• By Application :

  • Bakery Products
  • Soups & Sauces
  • Ready-to-eat Products
  • Others

• By Distribution Channel :

  • Hypermarkets/Supermarkets
  • Specialty Stores
  • Convenience Stores
  • Online Retail Stores

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Afric