Shift of Manufacturing Locations from West to East Predicted to Fuel the Growth of the Global Flour Market until 2020, Says Technavio
According to the latest market research report by Technavio, the global flour market is expected to grow at a CAGR of 4% through 2020.
In this report, Technavio covers the present scenario and growth prospects of the global flour market for 2016-2020. The market size is based on revenues generated through the retail sales of flour, which includes corn flour, rice flour, and wheat flour.
"The global flour market is witnessing a shift in manufacturing locations following the recession period. The market is also witnessing a gradual shift from western and developed countries in Europe and North America, toward the eastern and developing countries, such as China," said Arushi Thakur, one of Technavio's lead industry analysts for food and beverages research.
"Currently, most of the revenue generation and manufacturing for the global flour market is being driven by emerging markets, especially APAC, due to the availability of low-cost labor and rising local demand in the region. This trend is expected to continue during the forecast period and is expected to have a significant impact on the global flour market," added Arushi.
Europe: largest region for the global flour market
The flour market in Europe was valued at over USD 62 billion in 2014 and is anticipated to remain as the dominating region until 2020. Growing demand for bread and bakery products and awareness of gluten-free food items are expected to significantly drive the flour market in EMEA. Key applications of the flour market in the region includes manufacturing of noodles, pasta, wafers, bakery products, animal feed, and non-food applications, such as glue, bioplastics, and bio materials. Growing consumer interest in ready-to-eat food products is another key trend that is penetrating the fast food industry in EMEA. This in turn is predicted to fuel the flour market in Europe over the next four years.
APAC: most promising region for the global flour market
Low average selling prices of flour and high population density are the two key growth drivers for the flour market in APAC. The region is witnessing growing per capita consumption of bread and other bakery product and this trend is expected to increase the consumption of flour in APAC during the forecast period.
Increasing consumer preference for a wide range of bread and bakery products, along with the increased penetration of the fast food industry in APAC is playing an important role in augmenting the demand of flour in APAC. APAC is also experiencing growth in aquatic feeds and commercial farmlands. This trend is expected to significantly impact the growth of the overall flour market until 2020.
Growth of the flour market in North America
The flour market in North America is predicted to witness steady growth during the forecast period. Technavio research shows rapid expansion of the fast food industry in the region has substantially increased per capita consumption of flour products, such as sandwiches, hamburgers, pizzas, and bagels.
The amount of time required for planting wheat has also reduced, thus resulting in better production and a positive cascading impact on the flour market's growth in this region. In addition, food products with health benefits, such as dietary fiber products and low-calorie foods are attracting North American consumers, thereby driving the overall growth of the flour market.
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