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Food Fortification Helps Stakeholders Become Resilient to Future Shocks Post Coronavirus Pandemic

Food fortification is emerging as a key pillar as a response to the COVID-19 outbreak. Though coronavirus cases are relatively low in Africa, concerned authorities are taking precautionary measures to become resilient to future shocks. Companies in the Africa wheat flour market are taking advantage of this opportunity to strengthen their supply chains. They are increasing efforts to assess current rates of hunger and malnutrition, since the pandemic has potentially worsened the situation, due to low employment rates and interruptions in daily wages.

Proper nutrition is critical for building a strong immune system, and helping the body fight off disease and infection. Since the World Health Organization (WHO) is stressing on the importance of good nutrition, manufacturers in the Africa wheat flour market are strengthening their supply chains to help consumers maintain optimum immunity.

africa wheat flour market infographic

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Low Salt Dosage Regulations Pose Challenge for African Bakeries

The Africa wheat flour market is projected to reach the valuation of US$ 34 Bn by 2031. However, South African bakers are facing the salt-reduction directive, since excessive intake of sodium chloride (NaCl) can lead to serious cardiovascular and vascular diseases.

Regulations by the South African National Department of Health are posing as a challenge for bakeries ,as low salt dosage can have a detrimental effect on fermentation tolerance, texture, and shred of the loaf porosity. Mühlenchemie - a Germany-based specialist in flour production and fortification, is gaining recognition for working with its sister companies DeutscheBack and SternEnzym for developing a functional solution that effectively improves the texture of low-salt baked foods. Stakeholders in the Africa wheat flour market are taking cues from such developments to adopt highly effective enzyme systems, specially designed to maintain the dough structure and machinability.

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Sub-Saharan Africa Holds Lucrative Revenue Opportunities for Manufacturers

Manufacturers in the Africa wheat flour market are increasing efforts to improve their milling operations. Olam International - a major food and agri-business company, is increasing its focus for milling operations within Sub-Saharan Africa (SSA), which is one of the largest consumers of wheat after North Africa and the Middle East. Companies in the Africa wheat flour market are expanding their milling operations in Nigeria, Ghana, Senegal, and Cameroon. It has been found that Nigeria is one of the most populous countries in Africa and major importer in SSA. Company acquisitions are helping stakeholders to gain in-depth understanding of local market dynamics.

Wheat-breeding Programs in South Africa Grabbing Attention of Stakeholders

Companies in the Africa wheat flour market are identifying the best crop regions to bolster their output capacities. Wheat-breeding programs in South Africa during winter rainfall, summer rainfall, and irrigation areas are gaining prominence. Manufacturers are procuring their supply from the Western Cape province, which has a Mediterranean climate characterized by cool, wet winters, and hot, dry summers. Major irrigation areas are situated in Northern Cape, along the Orange River in Limpopo, Gauteng, and Mpumalanga.

Manufacturers in the Africa wheat flour market are boosting their production capacities in white bread flour, cake flour, and brown bread flour. Cake flour is a low extraction flour with a fine texture, and primarily used for puff pastry applications, cakes, biscuits, and scones. There is a demand for white bread flour.

Favorable Weather Conditions in Africa to Cause Dip in Imports

As per the USDA (United States Department of Agriculture) and the GAIN (Global Agricultural Information Network), an expected increase in the local wheat production, owing to favorable weather conditions in Africa will lower imports in 2021. South Africa’s local wheat price increased sharply to reach record high levels in April 2020 and again in August 2020 amidst the COVID-19 lockdown, diminishing any major increase in the local demand for wheat. Hence, stakeholders in the Africa wheat flour market are bullish on exports to nearby countries.

Stakeholders in the Africa wheat flour market are gaining awareness that local wheat prices are primarily influenced by developments in the global market as well as the strength of the South African Rand exchange rate.

Manufacturers Increasing R&D in Ancient Grains to Address Wheat-related Intolerances

The Africa wheat flour market is expected to register a healthy CAGR of 5.9% during the forecast period. However, wheat-related intolerances among consumers are concerning stakeholders. These intolerances involve a complex interplay of different grain components, all of which stimulate the immune cells in the intestine and trigger complaints in sensitive individuals. This has brought Michael Gusko, managing director at GoodMills Innovation, in the limelight for their work on ancient grains.

The 2ab wheat is found to be well-tolerated in sensitive individuals, and manufacturers in the Africa wheat flour market are increasing their research on the product. The 2ab wheat contains two original genomes i.e. AA and BB that are naturally free from the D gluten contained in modern wheat varieties. This wheat convinces in terms of taste and technology. As such, it is potentially challenging to produce pure ancient grain baked products with a good sensorial profile.

Chorleywood Bread Process Gains Popularity for Fine Texture in Breads

Sandwich bread production is creating stable income sources for stakeholders. South African consumers expect an attractive volume, a fine and even texture in breads with a longer shelf life. Industrial bakeries are found to be the main producers of sandwich bread who use the Chorleywood Bread Process (CBP). The CBP process combines high-speed mixer with the option of varying the pressure. The development of the gluten and dough can, therefore, be promoted at the mixing stage.

The CBP helps to improve the quality of baked foods, mainly by physical means. Nevertheless, few additives and ingredients are essential for ensuring uniform quality in this process. The oxidizing and maturing agent ascorbic acid is indispensable, along with the use of emulsifiers & enzymes that ensure a fine texture in breads.

africa wheat flour market segmentation

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Analysts’ Viewpoint

Due to favorable weather conditions and record yields in South Africa, stakeholders are bullish on exports due to poor market sentiments, owing to the COVID-19 outbreak. However, South African mills are struggling with inhomogeneous wheat qualities that exhibit highly variable rheological properties and protein levels. Hence, companies in the Africa wheat flour market should adopt the enzymatic flour treatment, which enables millers to produce high-performance flours with consistent product parameters, despite the difficult raw material supply. Stakeholders are improving their milling activities by working closely with bakeries, undertaking product trials, and listening to consumer feedback for product development. This helps to increase the availability of tailor-made products.

Africa Wheat Flour Market: Overview

  • The wheat flour market value in Africa is estimated to value over US$ 19 Bn in 2021, finds Transparency Market Research (TMR) in a recent study. According to the report, the market is expected to reach US$ 34 Bn by 2031, at a CAGR of 5.9% during the forecast period.
  • Wheat flour contributes toward the health of the consumers with potent health benefits such as promoting gut health, reducing risk of colon cancer, with positive effects on blood sugar levels and cholesterol levels, along with high fiber, vitamins, minerals, and catalytic elements content. Innovative product offering from prominent wheat flour manufacturers in order to cater application specific wheat flour in the food industry is expected to contribute toward the exponential growth for the market in Africa.
  • Use of wheat flour in Africa’s food industry accounts for the highest volume share with 42.2% in the year 2021 attributable to wheat flour being an essential ingredient in variety of bakery, snacks, and convenience food products
  • Customized wheat flour has emerged as a new promising solution for consumers, as provides better personalized experience. Increasing customer interest to add more functional benefits to their food products is expected to drive the demand for customized wheat flour for different applications.

Africa Wheat Flour Market: Frontrunners

  • Based on nature, conventional segment dominates the market share of the Africa wheat flour in the year 2021. However, organic products are gaining massive traction among end users, and the segment is expected to witness 5.8% CAGR during the forecast period.
  • In terms of type, whole wheat flour accounts for a significant market value share of 22.6% attributable to it being considered as clean label, high fiber content, and other nutrients such as iron, calcium, and protein
  • Bakery sub-segment in Africa has the highest incremental opportunity, owing to the high consumption of bread as staple food. The bakery sub-segment is expected to exhibit an incremental opportunity of US$ 2,510.9 Mn during the forecast period.
  • Online retail in Africa is expected to exhibit high value CAGR of 6.8% during the forecast period, owing to major retailers adopting omni-channel approaches to supplement brick and mortar sales with online stores and proliferation of mobile phones in the region
  • Use of wheat-flour in the food service industry in Africa is expected to exhibit significant value CAGR of 6.6% during the forecast period, owing to stable government support for encouraging this industry coupled with increased interest of the international brands for market dominance in the region.

Africa Wheat Flour Market: Trends

  • Exponential rise in demand for healthy food products to benefit growth of wheat flour market: Wheat flour is known for its high fiber, vitamin B, vitamin E, and catalytic elements content. It is also considered to be a good source of several minerals such as iron, calcium, selenium, manganese, copper, phosphorous, and folate. It offers a number of health benefits, which has led to increased demand for wheat flour among end users. Skin protection, nourishment, and energy are some of the basic health benefits offered by the consumption of wheat flour.

The high fiber content in wheat is known to promote gut health and reduce the risk of colon cancer. Consumption of wheat flour has also showed positive effects on blood sugar levels and cholesterol levels, which are some of the reasons that are contributing to change in dietary preferences of individuals. Weight gain, diarrhea, constipation, stomach pain, and fatigue are some of the symptoms associated with celiac diseases caused due to high gluten content. The low gluten content in wheat flour can be considered as a major factor to bolster the sales for wheat flour market.

  • Development of modern distribution channels leading to increased outreach of wheat flour products to customers: Rapid urbanization, rising per capita income, Internet facilities, and increasing social media influence are factors that have contributed to the growth of online business in African countries. This has led to an exponential growth of the eCommerce segment in the region. This, in turn, has shown a positive impact on the growth of retail markets leading to the growth of global wheat flour market.

Digital adoption by the African and Middle East consumers has been benefiting all kinds of businesses, including import-export markets. Key players are also offering wheat flour in bulk quantities for its customers in the food industry, which makes it convenient for them to choose and order for the right product.

The producers of wheat flour products have seen positive outlook post the digital consumers' awareness phase. The rising penetration of both e-business and retail stores in Middle East & Africa is expected to drive increased sales for wheat flour products.

  • Increasing quest for customized wheat flour to support wheat flour market growth: Customized wheat flour has emerged as a new promising solution for consumers, as it is providing better personalized experience to them. Consumers are keen to add more functional benefits to their food products, which has led to increased demand for customized wheat flour products.

Availability of diverse wheat flour products has also increased consumer attraction towards consuming customized wheat flour. Consumers are becoming aware regarding the health benefits and properties of wheat flour. This has further influenced consumer choices regarding the use of wheat flour as per the specific needs.

  • For instance, Grain Millers, a U.S.-based manufacturer of grain-based products, provides custom blends of ingredients including wheat, barley, rye, and flax

Africa Wheat Flour Market: Strategies

  • Leading players in the Africa Wheat Flour landscape are involved in the geographical expansion and enhancing its business activities globally. The companies are also focusing on expanding its presence in the local markets with the help of acquisition for expanding share in the plant-based products market.
    • For Instance, key players operating in wheat flour landscape such as Olam International and Ardent Mills, Inc. are more focused on the increasing their market share with the help of acquisitions and collaboration 
  • Manufacturers such as SOMDIAA S.A., Archer Daniels Midland Company, General Mills, Inc., and others are focused on increasing the production capacity by opening new state-of-the art flour mills to cater customers with high quality wheat flour

Africa Wheat Flour Market: Players

  • Some of the key actors, including producers, cultivators, and brands operating in the Africa wheat flour market, as profiled in the study, are
    • The Grands Moulins de Mauritanie
    • Bakhresa Group Ltd
    • Honeywell Flour Mills
    • SOMDIAA S.A.
    • Olam International
    • Supreme Flour
    • GIDEON MILLING
    • Tiger Brands Ltd.
    • Elnefeidi Group Holding Co. Ltd.
    • Rotana Flour Mills
    • Grain Millers, Inc.
    • Archer Daniels Midland Company
    • Arrowhead Mills
    • Ardent Mills, LLC
    • General Mills Inc.
    • Bob’s Red Mill Natural Foods
    • Pioneer Food Group
    • Premier Foods Group Ltd.
    • VKB Flour Mills
    • among others

Africa Wheat Flour Market – Scope of Report

Transparency Market Research (TMR) has recently published a market study on the Africa wheat flour market. It provides a detailed assessment of key market dynamics, including the drivers, trends, opportunities & restraints, and detailed information about the Africa wheat flour market structure. The market study presents exclusive information about how the Africa wheat flour market will grow during the forecast period of 2021-2031.

Key indicators of market growth, which include year-on-year (Y-o-Y) growth of the market, value chain, supply chain analysis, and compounded annual growth rate (CAGR) are elaborated in the study in a comprehensive manner. This information is intended to help readers understand the quantitative growth prospects of the Africa wheat flour market during the forecast period.

The study is intended to offer a holistic market overview to stakeholders in the Africa wheat flour, including manufacturers, suppliers, distributors, cultivators, brands and investors, and to help them develop winning growth strategies. Stakeholders in the Africa wheat flour market, which include investors, industry experts, researchers, and journalists, and business researchers, can leverage the information and data presented in TMR’s study.

The study also includes statistics and facts related to the macro as well as microeconomic factors that are impacting the expansion of the market. It also offers actionable insights into the future trends in the Africa wheat flour market. Furthermore, small businesses and new entrants in the Africa wheat flour market can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the market.

Key Questions Answered in TMR’s Africa Wheat Flour Market Report

  • Which region will continue to remain the most profitable regional market for Africa wheat flour market players?
  • Which factors will induce a change in the demand for Africa wheat flour during the assessment period?
  • How will the changing trends impact the Africa wheat flour market?
  • How can market players capitalize on the low-hanging opportunities in the Africa wheat flour market in developed regions?
  • Which companies are leading the Africa wheat flour market?
  • What are the winning strategies of stakeholders in the Africa wheat flour market to catapult their position in the forefront?

Africa Wheat Flour Market – Research Methodology

In TMR’s study, a unique research methodology is used to conduct extensive research on the growth of the Africa wheat flour market and identify future growth parameters. This research methodology is a combination of primary and secondary research, to help analysts ensure the accuracy and reliability of the conclusions.

Secondary sources referred to by analysts for compiling the Africa wheat flour market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who contributed to the development of this report as a primary source.

Information acquired from primary and secondary sources is compiled in a comprehensive manner. This also acts as a validation from companies in the Africa wheat flour market, which makes TMR’s projections more accurate and reliable.

Africa Wheat Flour Market – Segmentation

TMR’s study on the Africa wheat flour market offers information divided into important segments — type, nature, distribution channel, and end use. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.

Type
  • White Wheat Flour
  • Bread Flour
  • Pastry Flour
  • Durum Flour
  • Whole Wheat Flour
  • Others
Nature
  • Organic
  • Conventional
End Use
  • Food Industry
    • Bakery
    • Snacks & Savory
    • Convenience Food
    • Pasta
    • Noodles
    • Others
  • Food Service Industry
  • Retail/Household
  • Animal Feed
  • Others
Distribution Channel
  • Business to Business
  • Business to Consumers
    • Hypermarkets/ Supermarkets
    • Convenience Stores
    • Specialty Stores
    • Online Retail

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Africa Wheat Flour Market

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