The global market for functional flours is projected to reach USD 78.00 Billion by 2022, growing at a CAGR of 7.82% from 2016, in terms of value, and 156.92 MT by volume by 2022. The rise in demand from industries such as bakery, R.T.E products, and soups & sauces is driving the functional flours market. Rise in consumer spending on processed food products is also estimated to be the key driving factor for the functional flours market. Government initiatives to promote the functional flours industry and increase in trade of these commodities have complemented the overall growth of this industry. However, strict food labeling legislations and seasonal variations affecting the supply of raw materials with fluctuating prices restrain the growth of the market.
Based on application, the functional flours market is segmented into bakery products, soups & sauces, R.T.E products, and others (including seasoning bases, coatings & breadings, spreads & infant formula, special diet foods, and beverages.) The R.T.E products segment dominated the functional flours market due to rise in population and increase in disposable incomes, affecting market dynamics significantly. RTE products such as breakfast cereals, snacks, and pastas offer convenient snacking options and are thus very popular among the urban, working population.
On the basis of region, the functional flours market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). North America dominated the global functional flours market due to the presence of a developed food processing industry and a higher consumption of bakery and R.T.E products in this region.
Stringent government regulations and volatile commodity prices are the major restraints for the growth of the global functional flours industry. Increase in demand for premium food products, growth in consumption of convenience and healthy food products, and intensification of the global trade of functional flours are the primary driving factors for global functional flours market.