Functional Flour Market Report

The increasing demand for ready-to-eat products is fueling the expansion of the functional flour industry. Ready-to-eat foods are pre-cleaned, pre-cooked, packed foods that are ready to eat without prior cooking. Functional flours aid in the improvement of health and provide more health advantages than regular flours. Due to the global demand for ready-to-eat food, prominent market participants introduced innovative products to attract consumers and generate profitable revenue. The expanding market demand for ready-to-eat products propels the growth of the Functional Flours Industry throughout the forecast period. The changing lifestyles and growing disposable incomes of the people have raised demand for ready-to-eat product types, which save time and effort. As reported by the China Internet Information Center, Chinese e-commerce giant JD Inc is betting big on the fast-growing ready-to-cook, ready-to-heat, and ready-to-eat meals category, which has gained appeal among younger Chinese consumers. As a result, the functional flour industry is being driven by the increasing expansion of ready-to-eat products.

Additionally, consumer preferences continue to shift as the concept of clean labelling becomes more prevalent across multiple countries. Food manufacturers are trying to consistently innovate and stay up with growing trends in order to offer distinguishable products in this dynamic landscape. The emergence of 'clean label' is acting as a significant differentiator for food manufacturers in order to improve perceptions of their products and boost consumer confidence. Food manufactures are integrating flour variants in their products that align well with consumers' consideration of healthy ingredients, offering a boost to the adoption of functional flour. Food manufacturers are continuously shifting to functional flour to increase the credibility of their product labels, which helps them distinguish their offers on market shelves.

Stringent government regulations and labelling rules, mainly for gluten-free and health claims, as well as volatile commodity costs, are projected to hinder the expansion of the functional flour market during the forecast period. In addition, a lack of technological resources and infrastructure in developing countries is expected to hamper the expansion of the functional flour market in the future years. Furthermore, the high cost of raw materials, such as items derived from speciality source crops that are not native to the region, acts as a barrier to the market.

However, progress in genetic modification and Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) technology has the potential to transform functional flours by developing crops with improved characteristics such as better nutrition or resistance to diseases. This new advance could potentially shake up existing industry giants and bring in impactful fresh choices. Yet, the opposition from consumers towards genetically modified or gene-edited ingredients presents a major obstacle. Many consumers are cautious of biotech advancements, preferring traditional or organic products despite their potential advantages. This doubt may restrict the use of these innovative flours and impact market trends, finding a balance between technological advancement and consumer confidence and choices.

Product innovation in functional flours is crucial for meeting evolving consumer demands and staying competitive. By developing flours with enhanced nutritional profiles, unique textures, or specific health benefits, companies can differentiate their products and capture niche markets. Innovation also addresses dietary trends and sustainability concerns, ensuring products align with modern health preferences. This proactive approach not only drives market growth but also fosters brand loyalty and positions companies as leaders in the functional food sector. For instance, In June 2023, Renewal Mill, an early leader in the upcycled food movement, has just launched its third Upcycled Certified ingredient, upcycled White Corn Flour, a by-product of the cornmeal milling process. This ingredient joins the company’s existing portfolio of gluten-free, nutrient-dense, upcycled flours which currently includes organic Okara Flour, made from the by-product of soymilk production, and Oat Protein, made from the by-product of oat milk production. In addition, Scoular, an American grain, feed and food ingredient provider, expanded its U.S. grain handling capabilities in April 2022 by adding two facilities in Florida, including feed ingredient and grain processing facilities, storage space and a feed mill. These two new facilities are acquired from Columbia Grain & Ingredients and will service grain and livestock growers in the Southeast United States.

Functional flour is gaining traction as a result of its cost savings, nutrient content, thickening, texture, and flavour enhancements. North America controls the market with a strong awareness of product efficiency and the need for premium products. Recent trends in functional bars in the United States show that the country's demand for functional food items is expanding. The combination of calcium, omega-3 fatty acids, fibre and other minerals to granola/ muesli bars and food products has become popular in the American market. Consumption of nutritional convenience and fortified food is increasing, as is health awareness, leading to greater consumption of better diets, boosting the market.