Analysis of COVID-19 Crisis-driven Growth Opportunities in Wheat Flour Market

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Surge in Demand for Organic and Gluten-free Wheat Flour to Augment Market

Changing consumer preferences and regulatory framework are two important factors that continue to influence the growth trajectory of the food & beverages sector worldwide. Wheat flour is one of the most important core ingredients that is increasingly being used across the food sector in the U.S. The significant rise in the number of millennial population coupled with innovative ways to use wheat flour as an ingredient has led to a considerable rise in the demand for wheat flour in the U.S.– a factor that is expected to drive the U.S. wheat flour market during the forecast period.

Rise in the number of health-conscious consumers and increase in awareness pertaining to the benefits of wheat flour are other primary factors that are likely to aid the growth of the U.S. wheat flour market during the assessment period. Moreover, conventional wheat flour products have witnessed a drastic change from white-pan bread to a range of breads in the U.S. due to which, wheat flour is being utilized in a number of ways. Furthermore, a shift from bread products to non-bread products, including ‘tortillas’ is another major trend that is gaining momentum in the U.S.

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In addition, several players involved in the current U.S. wheat flour market are increasingly focusing on wheat breeding and quality evaluation to gain a competitive edge in the current market landscape. The rise of the digital age has provided wheat flour manufacturers in the U.S. to advertise their products on online platforms due to which, sales of wheat flour in the U.S. have witnessed consistent growth. At the back of these factors, along with the entry of online distribution channels, the global U.S. wheat flour market is expected to reach the US$ 27 Bn mark by the end of 2030.

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Focus on Flour Fortification to Meet Consumer Demand

Due to increasing nutritional deficit, a number of countries around the world, such as the U.S., are increasingly focusing on the fortification of flour with minerals and vitamins and including the same in preventive healthcare programs. The increasing demand for fortified flour across various states of the U.S. is expected to boost the overall growth of the U.S. wheat flour market during the assessment period. A number of mills around the country has integrated fortification processes to improve the nutrition content in their product. In addition, as the U.S. Government is increasingly focusing on improving public health, wheat flour fortification has gained notable popularity in recent years and the trend is set to continue during the forecast period. In addition, wheat flour fortification is a cost-efficient technique to prevent nutritional deficiencies, especially in younger population.

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Market Players Focus on Product Launch; Gluten-free Wheat Flour to Gain Popularity

Players operating in the U.S. wheat flour market landscape are increasingly focusing on expanding their market presence by launching niche wheat flour products to gain a competitive edge in the current market ecosystem. Furthermore, a number of companies are focusing on catering to the increasing demand for gluten-free and organic what flour. For instance, in March 2019, Miller Milling Co., one of the leading what flour millers in the U.S., announced that the company is set to tap into opportunities in the organic what flour segment.

In December 2019, Arcadia Biosciences announced the launch of a limited release reduced gluten non-GMO wheat flour that consists nearly 65% less gluten than conventional wheat flour. While expanding the product portfolio is expected to remain one of the key growth strategies adopted by top tier players involved in the U.S. wheat flour market, market players are also anticipated to focus on research and development, product packaging, and consumer transparency to remain competitive.

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Rise in Online Sale of Wheat Flour amid COVID-19 Pandemic in U.S.

The onset of the COVID-19 pandemic has compelled major players operating in the current U.S. wheat flour market to focus on increasing sales via online platforms. The significant rise in the number of COVID-19 cases across the U.S. coupled with the volatile political situation in the country resulted in a considerable drop in the sales of wheat flour in retail stores. Furthermore, stringent lockdown in the wake of the increasing number of cases led to a shift in consumer purchasing behavior due to which, online sales witnessed a spike.

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