Functional Flours Market Size, Share, Trends | 2032

Report Description

Functional Flours Market Outlook 2032

The global functional flours market size was USD 44 Billion in 2023 and is expected to reach USD 90 Billion by 2032, increasing at a CAGR of 7.4% during 2024–2032. The demand for agricultural food products is rising due to changes in lifestyle and population growth.

As the emphasis on plant-based diets, specifically, plant protein, continues to develop as consumer demand increases internationally, the demand for functional flours is expected to rise. These flours are being extensively incorporated into foods such as flatbread, biscuits, and cookies.

For vital nutrients, people all across the world are working to incorporate grains, cereals, and lentils into their daily diets. Additionally, the need for flour made without wheat is growing due to an increase in gluten sensitivity. To replace wheat flour in innovative formulations with high nutritional value and bioactive qualities, many food manufacturers are searching for substitute flour.

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Impact of Artificial Intelligence (AI) in Functional Flours Market

Refining of functional flour is a method that has existed since ancient times, the procedures have been upgraded, and the equipment restructured. Ensuring a mill remains operational and profitable is in the best interest of the miller in charge of it. The application of artificial intelligence (AI) provides fresh insights and solutions to address the various goals of the miller.

The development and training of the AI models is made possible by an extensive examination of numerous variables, such as wheat grain quality, process factors, and process parameters using data gathered on the value chain. It is feasible to optimize the milling process for wheat flour and create decision assistance tools. To optimize the process and transition to a smart mill, a number of important research directions beyond maintaining quality must be investigated. These include energy conservation, resource optimization, and mill performance.

Functional Flours Market Dynamics

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Major Drivers

Growing need for functional flours from the food & beverage industry  is driving the market. A wide range of food & beverage items employ functional flours to provide the required organoleptic properties. To improve their nutritional properties and to boost their stability, regularity, and other functions, these flours are heat, protein, and enzyme treated.

The market for functional flours is projected to expand due to factors such the growing number of health-conscious consumers' needing specialty, gluten-free, and fortified products. Consumers with wheat allergies, celiac disease, gluten intolerance, and other illnesses are choosing to use specialist flours.

• In October 2021, Cargill introduced a rice flour-based maltodextrin alternative. This soluble SimPure rice flour from Cargill is a clean label product that functions, tastes, and feels is similar to maltodextrin. Consumers use these ingredients in place of maltodextrin precisely. 

Existing Restraints

Implementation of strict regulations by regulatory bodies is likely to impede the market. To lengthen the shelf life, the market employs a variety of chemicals and substances. Nevertheless, regulations limit how these chemicals are used. The market was hampered by a number of variables, including fluctuations in the price of raw materials, which in turn, restrained the market.

Emerging Opportunities

Increase in disposable income is likely to create opportunities in the high functional flour market. The expected rise in per capita income in many countries is estimated to recover boost the spending on the functional flours in the coming years, thus creating opportunities in the market.

The demand for high-end goods is rising, as it is a natural flour that is healthy. These days, buyers choose quality over pricing. When low-calorie flours are introduced to the market, their demand soars. New innovations are sparked by the rising need for low-fat substitutes. Health-conscious people have a strong preference for foods that are low in calories.

Scope of the Functional Flours Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Functional Flours Market Segment Insights

Source Analysis

On the basis of source, the functional flours market is segmented into cereals and legumes. In 2023, the legume source segment accounted for 59.5% share of the market. Nutritional and techno-functional benefits, a range of legumes are employed to manufacture functional flours. It is an affordable alternative for vegans and vegetarians to receive plant-based protein. Legumes are sustainable alternative as opposed to animal protein, especially in light of the growing world population and the strain they are putting on the agriculture and food industries.

Rice, oats, and corn are among the cereals that are used to make gluten-free flours, meeting the needs of people who are intolerant to gluten. These flours are used for cooking and baking.

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Type Analysis

Based on type, the market for functional flours is aggregated into fortified, pre-cooked, and specialty functional flours. Specialty functional flours held a market share of 20.5% in 2023. The desire for ready-to-eat foods with a promising nutritional profile is being driven by rapid urbanization, fast-paced lifestyles, and an increasing worldwide population.

Innovatively prepared flour mixes have been launched by a number of food processing companies  in response to shifting consumer tastes toward convenience foods. These flours appeal to consumers in developed and developing countries, due to their appealing flavor and texture and a long shelf life.

Application Analysis

In terms of application, the functional flours market is divided into bakery products, soups & sauces, ready-to-eat products, and others.  The bakery products segment dominated the market and was valued at USD 31 billion in 2023. Improving the products' flavor, texture, and nutritional makeup is the major goal of utilizing functional flours in baked goods. A variety of ingredients are combined to create several types of functional loaves, each with unique sensory qualities and health benefits. The market for these functional flours is driven by their rich concentration of micronutrients, which include calcium, potassium, iron, and zinc, among other advantages in the coming years.

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Regional Outlook

Based on region, the global functional flours market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held the largest share of the market. The region is anticipated to hold 25% share of the market in 2023 due to its thriving processed food industry, growing adoption of healthy diets health consciousness, and rising consumption of nutrient-dense and fortified foods.

• In November 2020, according to an article published by the University of Nebraska, 20 million people in the US believed to be gluten sensitive, and 6% to 7% of the country's population has a gluten sensitivity.

The country's expanding healthcare spending trend and consumer adoption of preventative healthcare practices, such as eating a healthy diet, are boosting the overall sales of functional flours.

• In November 2021, Batory Foods, a US-based company that distributes food ingredients, successfully purchased DMH Ingredients, a company known for supplying a variety of food & beverage components. The financial terms of the sale were not disclosed. Nonetheless, the acquisition is expected to improve the quality of ingredients used by Batory Foods.

The need for functional flours is growing, as people in Europe become conscious of the health benefits of maintaining a balanced diet. Customers are looking for foods with high amounts of vitamins, minerals, and dietary fibers, among other nutritional benefits.

Europe is anticipated to hold a key share of the market in the coming years, with Germany hold a dominant share of the market in the region due to robust economy, sophisticated food sector, and rising consumer demand for wholesome and useful food items. The demand for functional flours is projected to rise in the region due to high consumer demand for products with clear labels. These goods cater to consumer demand for natural and minimally processed options by providing healthy ingredient lists and high transparency.

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