The functional flours market could grow beyond a value of $800bn by 2019, driven by a rise in consumption of bakery and ready-to-eat products in developing economies, Markets and Markets has said.
The sector is anticipated to grow at a yearly rate of 8.2%, in line with developments in the processed food industry, where an increase in consumer spending on processed food products is expected to be the key driving factor for growth. Government initiatives to promote the functional flours industry and increasing trade of these commodities have complemented the overall growth of the industry.
But strict food labelling legislations and seasonal variations affecting the supply of raw materials with fluctuating prices restrain the growth of the market, the industry insights provider added.
Markets and Markets also found that the North American region held the largest share of the global functional flours market, with approximately 40%. The next largest area was Europe. Some of the key names in the industry were Archer Daniels Midland, Associated British Foods, Cargill and General Mills.
A spokesperson for Markets and Markets said: “The functional flours market is fragmented, with the leading companies driving the growth… The leading players have adopted investments and expansions as their key development strategy to explore new and untapped markets, acquiring local players of the industry and constructing a new customer base for long-term client relationships. This has not only enabled them to expand their geographical reach, but has also reinforced their market position by gaining a larger share in terms of revenue and product portfolios. Small-scale players also adopted this strategy to expand their businesses, globally, by investing in the establishment of manufacturing facilities and technical service centers in various regions. This organic growth strategy is an important proposition for the smaller companies, enabling them to improve their technical expertise through intensive R&D infrastructure offered by bigger players.”
© FoodBev Media Ltd 2021
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