The flour market - Italy (2024)

1.2 World market

Wheat flour is a basic ingredient derived from the milling of wheat grains. The process involves removing the outer layers of the husk and bran, resulting in a finely ground powder. Wheat flour contains essential nutrients such as carbohydrates, protein, dietary fiber, and B vitamins such as folic acid and niacin. Its consumption can contribute to energy production, proper digestion, and general well-being.the global wheat flour market size reached $***.* billion in **** and is expected to reach $***.** billion in ****, showing a growth rate(***) of *.* percent over the forecast period.

Global wheat flour market value World, ****-****, in billions of dollars (***) Imarcgroup

2.3 The domestic market

Turnover trends in the grain processing sector in Italy have shown a positive and steady trajectory over the period between **** and ****, registering an overall increase of **.* percent. This significant growth reflects the expansion and strengthening of the sector within the Italian economy, highlighting the growing demand for grain-derived products and the ability of Italian companies to respond effectively to this need.

Turnover of the "Grain Processing" manufacturing sector Italy, ****-****, billion euros ISTAT

In the Italian agricultural context, harvested production of soft wheat exceeds that of durum wheat, outlining a production picture in which both types of grains play crucial roles, albeit with different dynamics. Between **** and ****, the sector recorded a *.* percent increase in soft wheat production. At the same time, durum wheat showed more pronounced growth, increasing by *.* percent over the same period.

Harvested production of durum wheat and common wheat Italy, million quintals, ****-**** Source: ****

The Italian region with the largest area of durum wheat is Puglia with ****** hectares, followed by Sicily (***).

The Italian region with the largest area of soft wheat cultivation is Emilia-Romagna (***).

1.4 Foreign trade

In Italy, the wheat trade landscape shows a trend in which imports are significantly lower than exports, which have been growing steadily and remarkably in recent years. This phenomenon underscores the country's strong position in the agricultural sector, particularly in wheat production and trade. In fact, Italian wheat exports manifested a **.* percent increase over ****, a sign of a dynamic and expanding sector.

Exports, Imports and Coverage Rate - wheat or semolina flour Italy, ****-****, in millions of dollars (***) UNComtrade

In terms of exports, it can be seen that the top consumer country is France (***).

Distribution of exports among the top * consumer countries Italy, ****, % UNComtrade Analyzing imports, the top, top flour-supplying country is Germany (***). Breakdown of imports among the top * supplier countries Italy, ****, % UNComtrade

1.5 Impact of the conflict between Russia and Ukraine

The outbreak of the Russian-Ukrainian conflict in February **** resulted in, among other things, a general increase in the consumer price index. The flour and cereal consumption sector has experienced a significant increase of **.* points (***) since the outbreak of the conflict to date. Consumer price index - Flour and other cereals Italy, ****-****, base ****=*** (***) Istat Regarding the trend of the producer price index, a marked increase was observed, culminating in a significant peak around December ****. Thereafter, the index embarked on a marked downward trajectory, declining substantially and steadily. This decline led the index to stabilize recently at values similar to those recorded prior to the outbreak of the conflict.

Producer Price Index - Grain Processing Italy, ****-****, base ****=*** (***) Istat

2.1 The Italian market

The item of average monthly household expenditure on flour and other grains contracted markedly in ****, showing a significant reduction of **.* percent. This figure reflects a significant change in Italian households' demand for these products, suggesting a change in the economic dynamics that influence households' ability to spend.

Household monthly expenditure item in flour and other cereals Italy, ****-****, in current &euro Istat

Flour products

Bread and baked goods are booming in Italy, as more and more people turn to their local bakery or supermarket instead of baking at home. Italy's milling industry processes *,***,*** tons of soft wheat annually, which enables the production of about *,***,*** tons of flour, ** percent of which is used for the production of breads (***), and ** percent for the production of pizza, confectionery or pastry products. Annual per capita consumption is around ** kg in Italy.[***]

According to the latest survey conducted by Italmopa,**% of Italians surveyed habitually consume bread and its derivatives, while **% of respondents say they do not cons ume it or consume it occasionally. The main reason for excluding bread consumption from the diet is dietary and health-related.[***]

Drivers of choice in the purchase of bread and its derivatives

The main factors influencing consumption of the product ...

2.2 Geographical distribution of demand

Analysis of the geographical distribution of cereal flour consumption in Italy reveals significant differences in household spending habits depending on the region to which they belong. To better understand this phenomenon, the monthly household expenditure item devoted to the purchase of cereal flours is considered. It is observed that the highest expenditure is in the South, where households spend an average of €*.** current per month on the purchase of these products. This is followed by Central Italy, with an average monthly expenditure of €*.** current, also indicating an appreciable inclination toward flour consumption, albeit slightly less than in the South. Finally, Northern Italy shows the lowest average monthly expenditure on cereal flours, at €*.** current.

2.3 New demand trends

There are more than *** thousand celiacs in Italy, and the trend is expected to be upward. New diagnoses in the last three years averaged * thousand per year, with a clear prevalence of the female sex(***). In ****, there were ***,** people in Italy diagnosed with celiac disease. Considering that the estimated prevalence of celiac disease in Western countries is around *%, it can be assumed that there are still many undiagnosed cases. According to a recent survey conducted in Italy, missed diagnoses could reach **% of cases.[***]

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The Ministry of Health document distinguishes four forms of celiac disease (***):

Classic (***), which appears during the first * years of life, after a latency of several months from the introduction of gluten-containing cereals. Non-classical (***), which is often observed in children older than * years, characterized by nonspecific intestinal symptoms and/or extra-intestinal manifestations such as sideropenic anemia, short stature, pubertal delay, isolated hypertransaminasemia or dermatitis herpetiformis. Silent, i.e., disease without clear symptomatology, which is occasionally detected following serologic screening in at-risk individuals. Potential, a form characterized by a typical serologic pattern in the presence of a normal or only slightly altered intestinal histologic picture.

The high prevalence of celiac disease contributes strongly on new demand trends, creating a ...

3.1 Italian market structure

Companies active in grain processing play a key role in the Italian agro-industry, being responsible for processing grains and grains into intermediate or finished products, such as flours, oils and other derivatives essential to the food industry. These companies vary in size and production capacity, including both large mills and small family-owned businesses, each specializing in processing specific types of grains or grains to meet different market needs, from bread-making to animal feed production to gluten-free and organic products. According to data provided by the National Institute of Statistics (***) for the year ****, the last year for which complete data are available, there were *,*** enterprises operating in the grain processing sector in Italy. This number represents a slight decrease from the previous year, down *.* percent.

Number of enterprises active in grain processing Italy, ****-****, in thousands of units Istat

Analysis of the legal form of enterprises active in the grain processing sector reveals significant diversity in the mode of business organization, reflecting both the tradition and evolution of the Italian business landscape in this area. Based on the available data, it emerges that a significant portion of enterprises, precisely **.* percent, operate as sole proprietors, freelancers or self-employed workers.at the same time, ...

3.2 The value chain of the flour market

The value chain in the flour market encompasses a series of interconnected activities that start from agricultural grain production to the distribution of the flour to end consumers or industries that use it as a basic ingredient. Let's take a closer look at the key stages:

Agricultural production: the first stage that occurs is wheat cultivation, which includes seed selection, planting, growing, and harvesting. This stage requires agronomic knowledge, the use of precision agriculture technologies, and sustainable practices to optimize yields and minimize environmental impact. Harvestingand storage: after harvest, the grain is harvested and transported to storage facilities. This step is critical to preserve grain quality by preventing spoilage and contamination. Efficient storage management is crucial to ensure the availability of quality raw material for milling. Milling: the milling stage transforms the grain into flour. This process can vary depending on the type of flour desired (***) and requires specific equipment to clean, grind and sift the grain. Milling must be carefully controlled to achieve the specific quality and characteristics of the flour. Packaging and labeling: flour is packaged in bags or containers suitable for transport and sale. Labeling provides important information about the type of flour, expiration date, any allergens, and ...

3.3 Main actors

In the Italian context, the wheat, other grain and seed milling and grain processing sector has a rich tradition and high specialization, with companies ranging from artisanal to industrial production.

Wheat flour producers

Production of flour from other grains

Seed and grain production

4.1 Type of Offering

Different types of flour can be found on the market, which differ according to the variety of wheat used, milling or sifting. Each flour has characteristics useful for certain preparations.

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4.2 Prices

The following is an overview of the pricing for cereals per tons (***); the products mentioned are the raw materials from which flour is produced; cereals useful for producing organic flours have also been included in the list.

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To view price trends, theconsumer price index for the past ** months is proposed. The consumer price index (***). In this system, the CPI value for the base year is set to ***. CPI values for later or earlier years are calculated to reflect the percentage increase or decrease in prices from the base year. It can be seen that from January to December there was a significant decrease in consumer prices of -*.* percent.

Consumer price index in flour and cereals (***) Italy, ****, base ****=*** (***) Istat

Flour is the key ingredient in the production of a wide range of foods, including bread, pizza, quiches, various bakery products, as well as pasta and couscous. Therefore, it is particularly relevant to analyze the evolution of the consumer price index (***) for these product categories. Among them, pasta and couscous showed the most significant changes: in March ****, the CPI for these products reached its peak, and then declined by *.* points in December **** from its March peak.

Consumer price index for flour-based ...

Nutrinsect: the first Italian startup licensed to sell cricket flour

The European Union has formally approved the use of Acheta Domesticus powder, commonly known as cricket flour, allowing it to be marketed and, as a result, legally introducing it to the Italian market as well. The prestigious Nutrinsect company in the Marche region of Italy, located in Montecassiano, is already distinguished for producing two tons of such powder monthly, setting itself the ambitious goal of increasing production to six tons. The CEO, Mr. Jose Francesco Cianni, recently announced that as of January **, ****, the product will be distributed through the renowned distribution company Reire, based in Reggio Emilia, making it accessible to both the industrial food sector and the hotel and restaurant industry. This innovative ingredient will find application in pastry and fresh pasta making, adopting already meticulously defined usage percentages for various preparations, such as ** percent for noodle production and * percent for cookies. Characterized by a high protein content, three times higher than meat, as well as significant amounts of calcium, iron, vitamin B** and fiber, and having a low fat and calorie intake, cricket powder has been labeled by many as a "superfood."

importantly, the availability of cricket flour in Italy dates back to early January ****, following the approval granted ...

5.2 Italian regulation

Regarding Italian and European regulations specific to flour for the market, these are mainly aimed at ensuring food safety, product quality and transparency for consumers. Regulations may include aspects such as composition, labeling, presence of contaminants, and use of additives. European regulations, in particular, are harmonized to facilitate trade within the European Union, while national regulations may have additional or more specific requirements.

Regulation (***) and establishes procedures in the field of food safety. Regulation (***) No. ****/**** on food information to consumers: This regulation covers food labeling and aims to ensure that consumers receive clear, understandable and useful information about the food they consume, including flour. Regulation (***) No. ***/**** on the hygiene of foodstuffs: Applies to all stages of food production, processing and distribution and establishes general hygiene requirements for food. Regulation (***) No. ***/**** on official controls carried out to ensure verification of compliance with feed and food law and animal health and animal welfare rules: Includes provisions on controls by Member States to ensure that all food, including flour, is safe and in compliance with the law. Legislative Decree ***/****: Updated with further amendments, this legislative decree covers the labeling, presentation and advertising of food products to ensure that consumers receive clear and correct information, ...

5.2 World Customs Nomenclature and Harmonized System

The Harmonized System is an international nomenclature for the classification of goods. It allows participating countries to classify traded goods on a common basis for customs purposes. Internationally, the Harmonized System (***) for the classification of goods is a six-digit code system.[***]

The HS contains about *,*** item/product descriptions that appear as titles and subtitles, divided into ** chapters, grouped into ** sections. The six figures can be divided into three parts. The first two digits (***).

The harmonized system was introduced in **** and has been adopted by most countries in the world. It has undergone several changes in product classification. These changes are called revisions and came into effect in ****, ****, ****, **** and ****. Detailed changes of each HS nomenclature are available on the links below.

To compile the foreign trade and market calculation statistics for this study, the following fields were selected:

For domestic production[***]

******** "Wheat or meslin flour."

Forforeign trade[***]

**** Wheat or meslin flour **** Cereal flours, other than wheat and meslin

6.1 Segmentation of actors

Manufacturers of wheat flour

Other grain flour production

Seed and grain production

• Molino Nicoli
• Molino Dallagiovanna
• Molini Pivetti
• Molino Grassi