Flour Power: Global Investments in Flour Mill Products Surge with Rising Demand

---

Researched by Industrial Info Resources (Sugar Land, Texas)--With rising population, transforming dietary habits, popularity of baked foods and preference for gluten-free products, the market for flour mill products is steadily growing. Flour mill products, crafted through a process involving milling, cleaning and refining cereal grains to produce flour, meal, grits, and bran, are utilized to create flour blends or doughs. These ingredients are essential for human consumption and are used in a wide range of culinary applications worldwide.

Globally, in the last few years, the flour mill products industry experienced disruptions due to events like the Russia-Ukraine conflict, impacting global supply chains and prices, especially for wheat, barley, corn, and sunflower oil. Before Russia launched a full-scale invasion, Ukraine exported over 60 million tons of grain annually, representing 10% of the global market. The Russian military's blocking of Ukraine's Black Sea ports disrupted about 90% of its agricultural exports.

However, with the supply chain gradually stabilizing, geopolitical tensions slowly easing and production recovering, 2024 is serving as a rebound, showcasing the industry's resilience and future growth. Recent global grain forecasts suggest favorable production prospects for key grain crops. According to the OECD-FAO Agricultural Outlook 2023-2032, by 2032, it's expected that global cereal trade will grow by 11%, reaching a total of 530 million tons. Wheat will be the biggest contributor to this growth, accounting for 43%, followed by maize at 34%, rice at 20%, and other coarse grains at 3%.

Growing emphasis on health and nutrition is resulting in increased demand for flour-based products as people seek out wholesome, organic, and nutrient-rich food options. The home-baking trend, which surged during the COVID-19 pandemic, has prompted people to spend personal time and seek comfort by baking at home. Growth in the food delivery industry has further enhanced the market for flour-mill products due to quicker accessibility.

Industrial Info tracking 402 projects worth more than US$7 billion worldwide aimed at manufacturing flour and other grain mill products. Grassroot projects account for 63% of the spending and 17% is for plant expansions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a list of the project reports.

Of the overall investment, 39% is in Asia and about 33% in South America. By country, China is driving the highest spending (US$2 billion), followed by Ecuador and Brazil with US$1 billion and US$962 million, respectively. Some of the other countries driving potential investments are the U.S., Russia, Mexico, Bangladesh, Japan and Australia.

The key players in the market are InterGroup Corporation (Los Angeles, California), China National Cereals Oils and Foodstuffs Corporation (Beijing, China) and Roshim PJSC (Moscow, Russia) with a cumulative spending of US$2.45 billion.

Projects with 60% of the total spending are in their planning phase, 17% are being engineered and 23% are under construction. A majority of the projects are expected to reach fruition by the end of 2028.

While the food industry is set to scale up further, it faces its own challenges. Contamination of food grains due to improper warehousing remains a significant issue. Supply chain variances due to weather-related factors and global trade dynamics continue to affect the market. Despite this, the population surge in developing countries and impact of favorable trends will likely boost the demand for flour and grain-based products, further amplifying their production.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).