Trends in the Functional Flour Market: Rising Demand for Gluten-Free Foods Globally to Fortify Industry Demand

Albany, NY -- (SBWire) -- 09/05/2018 --Listed below are some of the key trends associated with the market in the past few years:

Rapidly Changing Food Habits across Developing Economies: Over the past few years, emerging countries across regions such as Asia Pacific, Latin America, and Middle East and Africa have witnessed a notable shift in consumption habits of the populace, with increased adoption rates seen for non-conventional bakery and on-the-go foods staple to the Western world. Rising disposable incomes and a steadily rising consumption of bakery products such as biscuits, breads, and cakes are providing promising growth avenues to the functional flours market in these region. Moreover, the increased preference to healthy foods and the consecutive rise in inclusion of functional flours such as rye flour, oat flour, and soy flour in everyday meals is also playing a key role in the positive development of the global functional flours market.

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Rising Demand for Gluten-free Foods Globally: The massive global rise in demand, production, and consumption of gluten-free or low gluten food products in the past few years has also been a key decisive factor for the overall positive development that the global functional flours market has witnessed. This can be chiefly associated with the rising awareness among the global population regarding celiac diseases and the consecutive rise in increased diagnosis of gluten sensitivity conditions affecting hundreds of thousands across the globe, which often go unnoticed as common symptoms can have many other triggers.

The rising consumption of gluten-free foods globally has provided a steady stream of revenue to the global functional flour market and is likely to continue to do so in the next few years as well; according to another market research report by TMR, the global market for gluten-free foods will exhibit a promising 7.7% CAGR from 2015 to 2021, possessing a revenue opportunity of S$4.8 bn by 2021.

Functional flours refer to a variety of flours made from grains and non-grain products, modified so as to enhance the qualitative features of their individual components and for the flours to possess functional properties suitable to the specific application. Grains and non-grain products are treated through technologies such as hydro-thermal treating, extrusion, blending, roller drying, or further processing to impact them the special characteristics, which play a key role in granting indulgent textures and flavours to a variety of dairy and bakery items.

According to Transparency Market Research, the global market for functional flours will exhibit an impressive 6.8% CAGR over the period between 2017 and 2025, rising from a valuation of $70.4 bn in 2016 to a revenue opportunity of US$126.8 bn by 2025.

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Low Profit Margins Dissuading Manufacturers from Expanding Production Capacities: While the global functional flours market has mostly promising growth avenues and a vast set of new application areas, volatile costs of grains, legumes, and other products used to make functional flours is having a negative impact on profits for millers. This has remained one of the leading factors for a declining interest of millers towards the expansion of their production capacities of functional flours. The factor, however, fails to dissuade new players from entering the worldwide market for functional flours and a number of regional players can also be seen trying their luck and vying for a larger share in lucrative regional markets such as Asia Pacific and Middle East and Africa.