Market Overview
Functional flours are a specialized type of product that is hydro-thermally treated for various applications in the food and beverages industry. Functional flours are fortified with folic acid and a vital nutrient for normal fetal growth. Omega 3 fatty acids, iron, zinc, calcium, and vitamin B 12 are present in functional food and play an important role in normal growth and development. Functional flours help to promote gut microbe by offering live microbial cultures (probiotics), thus bolstering the immune system. Functional flours are typically high in important nutrients to prevent nutrient deficiencies. Increasing consumption of convenience and healthy food products helps to boost the market growth in the forecast period. Also, an increase in the demand for premium food also helps to boost the market growth.
The global functional flours market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 6.17% during the forecast period (2023-2030).
Market Dynamics: Increasing demand for the nutrient-enriched foods to improve overall health
The increasing consumer awareness about health helps to boost the nutrient demand to enrich food like functional flour. Increasing consumer interest in diet and health increased the demand for functional food. The prevalence of obesity across the world is continuously growing worldwide. It is a major public health challenge affecting almost every country worldwide. It is now one of the world’s most important public health problems. According to the World Health Federation, Global estimates reported that almost 2.3 billion children and adults are living overweight and obesity. If current trends continue, 2.7 billion adults could be living overweight or obesity by 2025. Therefore consumers are inclined towards food containing functional ingredients to reduce problems like obesity. The hectic lifestyle and work stress have contributed to the prevalence of such health disorders. The growing awareness and shift in eating habits have led to a trend of eating smaller meals during the day. These factors have boosted healthy foods and replaced meals with healthy biscuits, snacks, and energy or protein bars.
Other factors, such as the increase in consumer disposable income, an increasing number of working women, and increased demand for ready-to-eat food products, help to boost the market growth in the forecast period. Also, the increasing trend of on-the-go snacking is popular among children owing to their need for regular meals.
Market Segmentation: Cereals segment accounted for the highest share in global functional flours market
The cereals segment accounted largest market share due to the easy availability and increasing use. Cereals are cultivated on an annual basis. Cereal grain crops are grown in large quantities, providing more food energy than any other type of crop. They are nutritionally important sources of dietary protein, iron, vitamin E, vitamin B complex, carbohydrates, niacin, riboflavin, thiamine, fiber and traces of minerals important for both humans and animals. The most used cereal grains are wheat, maize, rice, barley, oats and sorghum. Increasing demand for cereals is owing to increasing demand for noodles and desserts, contributing to the growth of the cereal segment. The availability of noodles in various tastes and types would favor the market growth. According to the World Instant Noodles Association, the demand for instant noodles was highest in China, with 43990 million servings in 2021. A busy lifestyle and varieties of noodles available in the market make instant noodles a global food that supports the diets of people around the world. It is consumed in more than 100 billion servings annually. Also, increasing consumer awareness about cereal grain health benefits as a functional food helps to boost segment growth in the forecast period.
Geographical Penetration: North America is the dominating region during the forecast period
In 2022, North America had the highest revenue share of almost YY percent. The United States and Canada are major shareholding countries in the region due to the increase in consumers’ disposable income. Functional flour is getting popularity in the region for its cost-cutting, nutritional benefits, and taste enhancement. Also, increasing the trend of consuming gluten-free and clean-labeled food products helps drive market growth. Increasing consumers’ awareness of product efficiency and the demand for premium products further helps to boost regional growth. New trends in the United States functional bars reveal that the demand for functional food products has been increasing in the country. Increasing consumers consumption of nutritious and fortified food and growing health awareness leads to increased consumption of healthier diets, thereby driving the market. An increase in expenditures on healthy eating further boosts the functional flour market. As the healthcare expenditure pattern in the country is growing each day, consumers are adopting preventive healthcare measures, such as eating nutritious food. This factor is further driving the overall sales in the country. However, the growing influence of western culture has boosted the demand for high-protein and nutrient foods.
Competitive Landscape:
Global functional flours market is competitive in nature, with the leading players capturing a whopping share in revenues. Cargill, Inc, Archer Daniels Midland Company, Associated British Foods plc, Ingredion Inc., Sunopta Incorporated, Bunge Limited, Agrana Beteiligungs-AG, The Scoular Company, Conagra Brands, Inc, and The Caremoli Group are focused on technology advances for new launches at affordable prices. The major players are utilizing strategies including acquisitions & mergers, regional expansion, and partnerships to stand out as strong competitors in the market. Increased focus on R&D and new product launches are additional ways the key players improve their market presence. Innovation by various leading players in the market is expected to offer lucrative growth opportunities for players in the global functional flours market. In October 2021, Cargill launched soluble SimPurerice flour-based maltodextrin, which has a similar texture, taste, and functionality as maltodextrin. It can also improve mouthfeel. Also, in July 2021, Ulrick & Short introduced functional flour for gluten-free baked goods. It has applications in sweet and savory bakeries, such as bread, cakes & muffins, to gluten-free batters & coatings. It is clean labeled, non-GMO, allergen & gluten-free. In June 2021, Limagrain Ingredients launched called as LifyWheat, which helps to fulfill the fiber gap. White wheat flour is reportedly ten times richer in fibers than standard fibers and contains resistant starch.
COVID-19 Impact: Positive impact on the global functional flours market
Covid-19 negatively impacted the functional flour during the initial months. Due to the shortage of laborers and unavailability of raw materials functional flours market is negatively impacted. The food supply chain is completely disturbed due to government regulations on the product’s transportation and import and export. Food and beverage production plants were amongst the major businesses that experienced severe disruptions, such as supply chain restrictions and facility closures.
However, functional flour improves health and provides enhanced health benefits beyond the nutrients found in flour. Functional flours are fortified with vitamins, herbs and neutraceuticals. Consumers were becoming more health conscious and increased their spending on healthy food products like functional flours. Consumers adopt a combination of grains, cereals and lentil flours in their diet, which also helps to boost the market growth during the pandemic.
The global functional flours market report would provide an access to approximately 69 market data tables, 64 figures and 200 pages