Albany, NY -- (SBWIRE) -- 08/14/2017 -- Cargill Incorporated, Archer Daniels Midland Company, The Scoular Company, Associated British Food Plc, SunOpta, Inc., and The Hain Celestial Group, Inc. are some of the leading names operating in the global functional flour market. Besides a diverse product portfolio, these companies enjoy a strong global presence. Besides these and other established players, the market also showcases the presence of many regional players. Overall it is witnessing a highly competitive business environment, finds Transparency Market Research (TMR) in a new study.

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Mergers and acquisitions are common among the leading market players eyeing to expand their product portfolio as well as regional footprint. The companies operating the global functional flour market is deriving growth from the growing organic food market. While developed economies will remain at the fore, the market players are looking towards exploring greener pastures across emerging nations.

According to TMR, the global functional flour market is expected to report a CAGR of 6.8% between 2017 and 2025. At this pace, the market's valuation will reach US$126.8 bn by the end of 2025, from US$70.4 bn in 2016. Based on type, pre-cooked flour, specialty flour, and fortified flour constitute the key market segments. Of these, fortified flour emerged dominant with a share of 41.03% in the global market in 2016 and is expected to remain at the lead through the forecast period.

Regionally, North America led the global functional flour food market in 2016. However, exhibiting the leading CAGR of 7.4% in terms of value, Asia Pacific is forecast to emerge dominant by the end of 2025.

Opportunities Prevalent in Emerging Markets to Facilitate Growth

Globally, the demand for bakery products has increased at an exponential pace. This is the prime factor aiding expansion of the functional flour market. On account of changing consumer preference, bakery products and R.T.E have become staple in many countries across North America and Europe. "If not for this, the demand for functional flour would exhibit rise on account of increasing opportunities in Asia Pacific," said a lead TMR analyst.

TMR has projected the Asia Pacific market to beat other regions in terms of CAGR. Factors such as escalating population, rising disposable income, and subsequent concerns towards eating healthy especially in countries such as India, Japan, and China will create lucrative opportunities for the market. Besides this, the demand for gluten-free products is on a rise worldwide. This factor has considerably facilitated the global functional flour market.

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Irregularity in Output Price of Crops Pose Threat

Despite lucrative opportunities worldwide, price volatility of grains and low margins have remained key challenges for the market. In the last few years, pace of gains witnessed by the market decelerated in Europe as consumers shifted towards industrial bakery and value-added processed bakery. In addition, irregularity in the output price of crops is limiting the scope for the market's expansion. There has also been variations in the cost of fertilizers, energy, and chemicals, which had adverse influence on the overall market.