Wheat Flour Market Analysis
Overview of the Market :
KON, a market research firm, has predicted that the market for bagged wheat flour in India will expand at a compound annual growth rate (CAGR) of over 21% between 2016 and 2027. In 2022, the worldwide wheat flour industry was worth US$ 241.0 billion, and if the market continues to expand at its current rate, it might reach a new peak of Rs 25,000 Cr by the conclusion of the current fiscal year (2022-23). In this article, we will explore the factors that contribute to the growth of the packaged wheat flour market in India.
Market Growth Factors :
There are several positive micro and macroeconomic elements that have created favorable conditions for market expansion. One of the significant contributors is the increase in population, which creates a higher demand for wheat flour. Also, the rise in disposable income levels in India has allowed more people to afford packaged wheat flour products. Additionally, the growing demand for convenience foods has played a significant role in the increase in sales of packaged wheat flour.
Despite this, more than 90% of the market for packaged wheat flour is concentrated in metropolitan areas. This suggests that there is still a significant untapped market potential in rural areas of India. The demand for packaged wheat flour in India has been growing steadily, and this trend is expected to continue, especially as the top market players expand their reach into the country's rural market.
Furthermore, the rise of E-Commerce, or online shopping, is having a significant impact on the market due to expanding internet access and improved computer technology. The convenience of online shopping has made it easier for people to purchase packaged wheat flour, and this trend is likely to continue as more people in India gain access to the internet.
Market Players and Retail Outlets :
There are several major players in the wheat flour market in India, including General Mills, Cargill, ITC Limited, and others. These companies produce and distribute packaged wheat flour products across India.
India's major shopping centers, supermarkets, and grocery/Kirana shops are the primary retail outlets for wheat flour packaging. However, the rise of E-Commerce has also had a significant impact on the market. Online marketplaces, such as Amazon and Flipkart, are also selling wheat flour packages and have become a significant source of revenue for companies in the industry.
Rise in Demand for Pre-packaged Wheat Flour
Demand for pre-packaged wheat flour in India by wheat flour manufacturers is expected to rise in the future due to rising employment rates among women and their preference for time-saving food options. The increasing number of women in the workforce has created a demand for ready-to-cook food products that are convenient and easy to prepare. Packaged wheat flour products have become a popular choice for these consumers, and this trend is likely to continue.
In Trend :
The demand for organic food has been on the rise due to the fact that it is produced without the use of harmful substances such as pesticides, synthetic fertilizers, or genetically modified organisms (GMOs).
Increases in the rates of various chronic diseases, such as diabetes, cancer, and heart ailments, have a direct impact on the demand for organic wheat flour from consumers all over the world.
In the Asia-Pacific Region, wheat flour is widely employed in the production of staple foods, thus resulting in higher consumption. Moreover, the increasing number of restaurants, cafes, and other food service enterprises in significant countries such as India and China has also augmented the region's requirement for wheat flour.
Market Progress :
In May, GCMMF (Gujarat Co-operative Milk Marketing Federation Limited) will launch organic whole wheat flour under the Amul brand. This flour will be obtainable in two different pack sizes and obtainable in Amul Parlors and major retail outlets in Gujarat, India.
In Dec, Ardent Mills, the preeminent leader in flour milling and ingredients, acquired Firebird Artisan Mills, a groundbreaker in the field of milling gluten-free grains, specialty grains, and pulses.
Market Potential :
The demand for wheat flour has been on the rise in the food industry, partly due to its low gluten content, making it a popular choice for those with gluten sensitivities. This has led to a significant increase in the production and consumption of wheat flour in India, with the country becoming the second-largest producer of wheat in the world, having increased its output tenfold in the last five years.
Apart from its gluten-free properties, wheat flour is also rich in vitamins B and E, minerals, and enzymes, which make it a highly nutritious food option. As a result, it has become an essential part of India's food economy.
While local chakki mills still control a significant portion of the wheat flour market in India, branded bagged wheat flour has gained popularity over the last five years, bringing about a significant shift in the industry. National and regional players are capitalizing on the growing demand for hygiene and convenience by introducing new product varieties, such as multi-grain atta and fortified atta, that cater to the evolving consumer preferences.