Enriched Flour – Trends and Forecast till 2023

Published On: March 2018

Enriched Flour Market Insights

Flour is a powder made by grinding uncooked cereal grains, seeds or roots. It mainly comes from wheat. However, it can be milled from rice, corn, nuts, legumes, and some fruits & vegetables. Depending on the base and extraction rate (the amount of flour removed from the grain) variations within the nutrient content of flour occur. Enriched flour offers essential vitamin and minerals which have been lost in the process of preparation. The purpose of enriching the flour is to reload the nutrients in the flour to match the nutritional status of the unprocessed product.

Bakery & Confectionery industry is holding major market share in the enriched flour market

Bakery & confectionery products are experiencing substantial growth over the last few years. The growth of the bakery & confectionery industry is anticipated to be driven by the various factors. Increasing urbanization is considered to be the key factor for the rising growth of bakery & confectionery market. Also, the increasing per capita disposable income among the consumers in developing nations is positively impacting the sales of bakery & confectionery industry. Apart from that, factors such as changing lifestyle, rising women workforce, and increasing demand for convenience products are anticipated to be a vital reason for increasing demand for bakery & confectionery products. Consumers are becoming health conscious and aware of the nutritional benefit of food & beverages. Due to the increasing demand for healthy food products, manufacturers of bakery & confectionery have started using enriched flour instead of conventional flour.

Food fortification creates a massive opportunity in the enriched flour market

Fortification is the practice of deliberately increasing the content of an essential micronutrient, i.e., vitamins and minerals (including trace elements) in food, to improve the nutritional quality of the food supply and provide health benefits with minimal risk to health. In the developed economies, the growth of the fortified food is driven by the rising health-conscious consumers. Also, growing awareness related to nutrient deficiencies including vitamin A, vitamin D, iron, and iodine is expected to provide excellent opportunities for market growth. Additionally, rising prevalence of nutritional deficiencies in the underdeveloped economies is further propelling the growth of fortified food. Governments of many developing economies have started promoting food fortification to the food manufacturers. The promotional initiatives of the governments have created strong awareness among the consumers regarding the benefits of fortified food. In September 2016, U.K’s Department for International Development has launched the Food Fortification program to improve the nutritional status of people in Pakistan. Enriched flour is used widely in the functional food & beverages as an important ingredient. Due to the increasing demand for fortified food both in the developed and developing economies, the growth of the enriched flour is expected to increase at a high level. Key manufacturers of food & beverages are using enriched flour due to the increasing demand for fortified food.

Enriched flour is gaining massive acceptance among the consumers due to the increasing gluten allergens

Celiac disease is one of the primary drivers for the increasing demand for gluten-free food products. Celiac disease is an autoimmune disorder, whereby the small intestine is unable to process the gluten present in certain foods such as wheat, barley, and rye. In the Americas, almost one-third of Canadians are looking for gluten-free products, and approximately 2.5 million require gluten-free food for health-related purposes. In Canada, celiac disease is one of the primary reasons for the sale of gluten-free food, with approximately 1% of Canadians and Americans suffering from the disease and the vast majority of people perceiving it as a healthy diet. In Europe, approximately 11.1 million people are suffering from celiac disease and close to 71 million are suffering from wheat intolerance. There are close to 190.2 million Europeans who avoid wheat in their diet or self-diagnose as intolerant, thus making gluten sensitivity one of the major issues in the European region. The European market is also witnessing high growth even among non-celiac patients with increasing number of product launches. Due to the increasing gluten allergic consumers across the globe, the manufacturers of enriched flour are coming up with gluten-free enriched flour to tap the attractive market.

So, what is the future of the enriched flour market?

In the developing economies and underdeveloped countries, flour business is highly fragmented. So, the small manufacturers follow traditional processing technique to manufacture flour. Manufacturers invest in research and technical enhancement for new product development and investigative activities to improve existing products and procedures to launch new products. Due to the dynamic food markets across the world, manufacturers are inclined to come up with the innovative new products to retain their competitive market share. Flour manufacturers in the underdeveloped & developing economies are not aware of the new technology and machinery. Apart from that, huge working capital is required to carry out the operational activities. Along with capital investment to set up the business, manufacturers need to know the fortification process. In many underdeveloped economies, manufacturers are not aware of the food fortification. Therefore, deficiency of capital invest and lack of technological advancement are expected to pose a major challenge in the enriched flour market during the forecast period.

Enriched flour products are priced higher than the normal flour. Although enriched flour is a healthy alternative for health-conscious consumers, their pricing can be unaffordable for the majority of consumers in the underdeveloped economies. One of the major reasons for the high price of the enriched flour is high production cost. During the processing of enriched flour, the nutrients of the products such as vitamins, minerals, and other nutrients are added which is an expensive process, and manufacturers pass on these costs to consumers. The market is expected to experience slow growth in the underdeveloped economies due to the high price of enriched flour during the forecast period of 2017-2023.