Middle East Flour Market Size, Share & Industry Analysis, By Type (Gluten Containing Flour [All Purpose Flour {Flour No. 2, Patent Flour, and Others}, Atta Flour {Flour No. 2, Multigrain and Others}], Gluten Free Flour [Almond Flour, Coconut Flour, Chickpea Flour, Rice Flour, Corn Flour, and Others]), and Flour Premixes [Cake Mix, Cookie Mix, Bread Mix, and Others], By Nature (Organic and Conventional), By Distribution Channel (Retail [Supermarkets/ Hypermarkets, Convenience Stores, Online Retailers, and Others] and Food Service), and Regional Forecast, 2024-2032

The Middle East flour market size was valued at USD 15.56 billion in 2023. The market is projected to grow from USD 16.19 billion in 2024 to USD 22.56 billion by 2032, exhibiting a CAGR of 4.24% during the forecast period. Some of the prominent flour manufacturers include Agthia Group PJSC, Ulusoy Flour Mills, Oman Flour Mills S.A.O.G, and First Mills.

Flour is a fine, powdery ingredient made by grinding grains, roots, beans, nuts, or seeds. The most common type is wheat flour, which is the main ingredient in bread, a staple food for many cultures. The region's flour consumption is primarily dominated by Turkey, the UAE, and Saudi Arabia, which hold the largest market shares. The UAE is noted for its high consumption rates, while Saudi Arabia and Israel are expected to witness promising growth during the forecast period. Furthermore, the rapid population growth in the Middle East, coupled with urbanization, has led to increasing demand for staple foods, such as bread, bakery products, noodles, and other flour-based products. The expanding urban population also leads to a greater reliance on processed and convenience foods that require flour as a primary ingredient.

MARKET DYNAMICS

Market Drivers

Rising Popularity of Bakery Products among Consumers to Foster Market Growth

Bakery items hold substantial cultural importance in the Middle East, with traditional foods, such as pita bread, flatbreads, and savory pastries, being staples in many households. The strong cultural ties to these products ensure a consistent demand for flour, as they are integral to daily meals and festive occasions. The adoption of Western dietary habits has led to a rise in the consumption of baked goods such as cakes, cookies, and pastries. This trend is particularly pronounced among younger consumers, who are more inclined to try new products and flavors, thereby increasing the demand for flour used in these baked items.

Growing Demand for Gluten-free Products Boosting Market Growth

Recently, there has been an increase in the diagnosis of celiac disease and gluten sensitivity across the region. According to the study published by the College of Medicine, Alfaisal University, Riyadh, in Saudi Arabia, celiac disease has the highest prevalence among the general adult population, which is around 3.2%, where women have a higher prevalence of celiac disease than men. The broader health and wellness movement has led many consumers, including those without specific dietary restrictions, to perceive gluten-free products as healthier alternatives. This shift in consumer perception is fueling demand for gluten-free flour and related products as part of a balanced diet.

MARKET RESTRAINTS

Agricultural Limitations Significantly Restrict the Growth of the Market

The region faces significant agricultural limitations due to its arid climate and water scarcity. These conditions limit local wheat production, making it difficult to achieve self-sufficiency in flour supply. Extreme weather events and changing climatic conditions further exacerbate these challenges, impacting crop yields and agricultural sustainability. According to the United Arab Emirates Ministry of Climate Change & Environment, the UAE is located in an arid zone, where the desert environment accounts for more than three-quarters of the country's total area. The country is characterized by high temperatures, low rainfall, poor soil, and a lack of natural waterways, affecting the country's agricultural sector.

MARKET OPPORTUNITIES

Adoption of Modern Technologies in Flour Milling to Expand Production Capabilities

The adoption of modern technologies in flour milling is revolutionizing the industry, enabling mills to expand their production capabilities and meet the evolving demands of consumers. Flour milling in the region has transitioned from traditional stone mills to sophisticated automated roller mills. These modern mills utilize computerized systems that optimize the milling process, leading to higher efficiency, better product quality, and increased production capacity. For instance, recent projects in Egypt have witnessed the conversion of old stone mills into modern facilities equipped with advanced roller mills and centralized control systems, allowing double flour production in reduced space. As the industry continues to evolve, the integration of advanced technologies will be crucial for mills to remain competitive and meet the changing needs of consumers.

MIDDLE EAST FLOUR MARKET TRENDS

Growing Popularity of Functional and Clean Label Products to Fuel Market Growth

Consumers are increasingly adopting healthier lifestyles, leading to a surge in the demand for functional flours that offer enhanced nutritional benefits, such as higher protein content and lower fat levels. This shift is particularly notable among individuals with dietary restrictions, such as those with celiac disease, who seek gluten-free options. This awareness is further fueled by the increasing prevalence of lifestyle-related health problems, such as obesity and cardiovascular diseases, which has led consumers to seek out healthier alternatives. According to the World Health Organization (WHO), around 34% of deaths caused by non-communicable diseases in the Middle East are due to cardiovascular diseases. The COVID-19 pandemic has further accelerated this trend as consumers seek products that support their health and well-being.

IMPACT OF COVID-19

The COVID-19 pandemic had a significant impact on the Middle East flour market growth, both positive and negative. The pandemic caused an economic slowdown in the Middle East, with declines in oil production, tourism, and remittances. This reduced consumer spending power impacted the demand for flour and other food products. With restaurants, cafes, and bakeries closed or operating at reduced capacity, the demand for flour from the food service sector declined sharply. With more people staying at home during lockdowns, there was a rise in home cooking and baking. This boosted the demand for flour through retail channels, offsetting some of the losses from the food service sector. The pandemic accelerated the shift toward online shopping and delivery. Flour producers and retailers adapted by expanding their e-commerce offerings, allowing consumers to purchase flour and other food items online.

SEGMENTATION ANALYSIS

By Type Analysis

Gluten Containing Flour Segment Leads Due to Wide Availability and Affordability

On the basis of type, the market is segmented into gluten containing flour, gluten-free flour, and flour premixes. The gluten-containing flour segment is expected to dominate the Middle East flour market. Gluten-containing grains, such as wheat, are integral to traditional Middle Eastern diets. Foods such as bread, pastries, and various baked goods are essential components of daily meals, making gluten-containing flour a staple in households and food service establishments. Gluten-containing flours are generally more affordable compared to specialty gluten-free flours. This price advantage makes them more accessible to a broader consumer base, especially in a region where economic considerations play a significant role in food purchasing decisions.

The gluten-free flour segment is recognized as the fastest-growing segment in the market. The region's evolving lifestyles, including dietary changes influenced by globalization, have contributed to a greater recognition of gluten-related health issues. As more people become informed about the adverse effects of gluten, they are opting for gluten-free alternatives.

Rapid urbanization in the Middle East has led to changing dietary patterns, with more people relying on processed and convenience foods. Flour premixes fit well within this trend, providing an easy solution for busy urban dwellers.

By Nature Analysis

Conventional Segment Secured Prominent Position Due to Wide Economic Viability

On the basis of nature, the market is distributed into organic and conventional. The conventional segment is expected to hold a major share of the flour market. The conventional flour segment's dominance in the Middle East market is reinforced by its established role in traditional baking and cooking practices, alongside the growing interest in health-oriented products that include functional variants. The economic viability of conventional flour production, including lower costs compared to specialty flour, makes it an attractive option for both consumers and manufacturers. This economic factor supports its continued dominance in the market despite the growing interest in alternative flour.

The organic flour segment is expected to experience significant growth in the Middle East flour market. Consumers in the Middle East are becoming increasingly aware of the potential health benefits associated with organic flour. It is perceived as a healthier alternative as it is cultivated without the use of synthetic fertilizers, pesticides, or harmful chemicals. There is a rising trend toward clean-label products, where consumers prefer minimally processed foods with simple, recognizable ingredients. Organic flour aligns well with this trend, as it is free from artificial additives and preservatives.

By Distribution Channel Analysis

Food Service Emerged as Dominant Segment Owing to High Usage in the Food Service Industry

Based on the distribution channel, the market is distributed into retail (supermarkets/ hypermarkets, convenience stores, online retailers, and others) and food service. The food service segment dominates the Middle East flour market. The region is experiencing rapid urbanization and population growth, leading to a higher demand for dining options. As cities expand, new restaurants, cafes, and food outlets are being established, significantly increasing the consumption of flour-based products.

The retail channel is projected to experience significant growth owing to an increasing inclination toward convenience products, and ready-to-eat foods are reshaping consumer behavior. The proliferation of supermarkets and hypermarkets enhances consumer access to a variety of flour products. These retail giants offer a comprehensive selection, catering to diverse consumer needs and preferences, which is crucial for driving sales growth in the flour market.

FLOUR MARKET REGIONAL OUTLOOK

On the basis of countries, the market is distributed into Israel, Qatar, Saudi Arabia, Turkey, UAE, and the rest of the Middle East.

Turkey

Turkey leads in the market and holds the largest flour market share of 27.73% in 2023. Self-sufficiency in wheat plays a crucial role in Turkey's flour industry, contributing significantly to its position as a leading global exporter. According to the United States Department of Agriculture (USDA), Turkey’s wheat production increased from 17,250 (000 tons) in 2022/2023 to 21,000 (000 tons) in 2023/2024. This self-sufficiency in wheat enables Turkish flour mills to utilize high-quality domestic grains, which are essential for producing various flour types that meet international standards. The ability to blend imported wheat for specific quality enhancements ensures that Turkish flour remains competitive globally.

Saudi Arabia

The demand for flour in Saudi Arabia is driven by several key factors that reflect both socio-economic trends and consumer preferences. The privatization of flour mills in Saudi Arabia has significantly transformed the market landscape, reflecting broader economic reforms and strategic goals. The privatization of state-owned flour mills has fostered competition and efficiency within the industry. This shift has allowed private companies to innovate and diversify their product offerings, catering to evolving consumer preferences while enhancing overall market dynamics.

UAE

The growth of the UAE flour market is driven by various factors that reflect the changing demographics, consumption patterns, and economic conditions in the region. The UAE's population includes a substantial number of expatriates from Asia, Europe, and the Middle East, each bringing their unique culinary traditions. According to the United States Department of Agriculture (USDA), around 12% of the population are UAE citizens, and the remaining 88% of the population is made up of expatriates. This diversity has led to heightened demand for specialty flours that meet the specific needs of different ethnic cuisines, such as whole wheat flour for Indian bread, rice flour for Asian dishes, and corn flour for traditional Middle Eastern recipes.

Israel

Israel has been witnessing a shift in consumer preferences toward healthier and alternative flour options, such as whole grain and gluten-free products. The rise in gluten intolerance and celiac disease awareness has led to an increased demand for gluten-free flour. The Israel Ministry of Health, in 2021, estimated that the ratio of celiac patients, both diagnosed and undiagnosed, is 1:100 to 1:150, i.e., 62,000– 93,000 people in Israel. Consumers are seeking alternatives that provide nutritional benefits without gluten, which has become a significant segment within the flour market.

Qatar

The overall economic growth in Qatar has led to an increase in disposable income among consumers, enabling them to spend more on quality food products. This economic stability supports higher consumption levels of various flour-based products across different sectors, including retail and food service.

Rest of the Middle East

The rest of the Middle East is experiencing rapid population growth and urbanization, which significantly increases the demand for flour-based products. Urban areas such as Egypt, Morocco, Kuwait, and Oman in the Middle East are experiencing rapid growth due to tourism. This urbanization leads to changes in dietary habits, with a rising preference for convenience foods that utilize flour as a primary ingredient. The growing number of fast-food chains and bakeries also contributes to increased flour consumption.

COMPETITIVE LANDSCAPE

Key Flour Market Players

Market Leaders are embarked on Base Expansion, followed by Increasing Participation in Food Exhibitions

The Middle East flour market is fragmented with the presence of a number of large, medium, and small-scale players in the market. Leading players such as Agthia Group PJSC, Ulu soy Flour Mills, Oman Flour Mills S.A.O.G, First Mills, and International Foodstuffs Co. (IFFCO) held nearly 13.96% of the Middle East flour market share in 2023. The prominent players in the market are embarking upon two strategies – base expansion, followed by increasing participation in food exhibitions to expand their flour offerings, along with strengthening their presence in the region. Companies are also actively launching new products in order to enhance their market presence. For instance, in November 2021, Oman Flour Mills Company launched a wheat product named ‘Bur.’ The new product is a high-quality and special stone-milled flour for making healthy brown breads and rolls.

LIST OF KEY FLOUR MARKET COMPANIES PROFILED:

• Agthia Group PJSC (Abu Dhabi)


• Arabian Mills (Saudi Arabia)


• Bob's Red Mill Natural Foods, Inc. (U.S.)


• First Mills (Saudi Arabia)


• Green Farm (UAE)


• International Foodstuffs Co. (IFFCO) (UAE)


• Kuwait Flour Mills & Bakeries Company (Kuwait)


• Oman Flour Mills S.A.O.G (Oman)


• Qatar Flour Mills (Qatar)


• Ulusoy Flour Mills (Turkey)

KEY INDUSTRY DEVELOPMENTS:

• June 2024: Saudi Arabia’s First Milling Company, known as First Mills, secured a USD 39.98 million financing facility from the Saudi Industrial Development Fund (SIDF). This funding will be directed toward restructuring working capital and enhancing the company's business operations.


• April 2024: First Mills commenced commercial operations at its new Durum Mill located in its factory in Jeddah. This mill was a significant decision as it is the first of its kind in Saudi Arabia, designed to produce semolina for pasta, sweets, and other products.


• February 2024: International Foodstuffs Co. (IFFCO) announced its participation in the upcoming Gulfood exhibition at the Dubai World Trade Centre. The company would showcase its leading brands, such as Al Baker, London Dairy, Tiffany, Noor, and others.


• February 2024: Kuwait Flour Mills & Bakeries Company participated in the Gulfood 2024 exhibition in Dubai. The company is a premier food industry establishment in Kuwait that specializes in producing flour, biscuits, bread, vegetable oils, and pasta.


• December 2023: Ulusoy Flour Mills expanded its operations by opening a new factory in Hatay, Turkey. This strategic move significantly increased the company's daily flour production capacity to 4,200 tons, reinforcing its position as a leader in the Turkish flour market.


• January 2022: Kuwait Flour Mills & Bakeries Company opened a new Al-Yarmouk Bakery Store. This bakery is part of KFMB's expansion efforts to enhance its retail presence in Kuwait. The company has been actively opening new stores to cater to the growing demand for its products, which include a variety of baked goods, flour, and other food items.

INVESTMENT ANALYSIS AND OPPORTUNITIES

Diverse Product Range and Technological Innovations to Provide Market Opportunity

Nowadays, there is a growing interest in specialty flours such as almonds, coconut, and quinoa flour. Investors can explore opportunities in these niche markets as health trends continue to influence consumer choices. The adoption of digital platforms for distribution and sales is gaining traction. Companies that leverage e-commerce can enhance their market reach and operational efficiency.

REPORT COVERAGE

The Middle East flour market research report includes a market overview as well as quantitative and qualitative insights. It also offers a detailed analysis of the market sizing and growth rate for all possible segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and market trends.

REPORT SCOPE AND SEGMENTATION