The flour market - Spain (2024)

1.2 The global market

The global flour market, valued at $***.** billion in ****, is expected to grow steadily over the coming decade, with an average annual growth rate of *. *% between **** and ****. Forecasts indicate a gradual increase in this market, which is expected to reach $***.** billion in ****.

Global flour market trends World, ****-****, billions of dollars Source: ****

The following chart shows the world's top ** flour exporters. Turkey, Kazakhstan and Germany are the three biggest exporters.

Countries exporting the most wheat flour (***) World, ****, $ million Source: ****

1.3 The domestic market

Over the period ****-****, Spain's milling sector recorded significant growth in sales. Sales rose steadily from *.*** billion euros in **** to *.*** billion euros in ****. This increase is reflected in positive annual growth rates, with a *.*% increase in ****, followed by a slight rise of *.*% in ****. In ****, the sector grew by a notable **.*%, and this trend accelerated in **** with a remarkable **.*% increase.

Sales trends in the Grinding Mill sector Spain, ****-****, billions of euros Source: ****

Between **** and ****, sales generated by Spanish household consumption of flour and semolina fluctuated significantly. In ****, it stood at €***.** million, rising slightly to €***.** million in ****. A sharp rise was seen in ****, when sales reached ***.** million euros, representing a remarkable **.*% increase. This increase was due to the covid-** pandemic and its confinements. Indeed, being more at home, Spaniards cooked more. However, this trend was reversed by a **.*% fall in sales to ***.** million euros in ****, reflecting the return to normal both in terms of the covid pandemic and the flour and semolina market . Despite this decline, sales rebounded in **** to reach ***.** million euros, recording a slight increase of *.*%. This increase in sales in **** was nevertheless made possible by the inflation in flour and semolina prices in relation to lower domestic consumption of ...

1.4 Foreign trade

In order to study wheat flour imports and exports, we will use the statistical code HS:**** "wheat flour" defined by the United Nations.

Between **** and ****, Spain's foreign trade in wheat flour has seen continuous deterioration. In ****, the trade balance was positive, with a surplus of *.** million. However, this trend changed the following year, in ****, with the trade balance falling to -*.** million, indicating a slight deterioration. In ****, this deterioration became more pronounced, with the trade balance dropping to -*.** million, reflecting an increasingly worrying situation. Finally, in ****, the trade balance fell drastically to -**.** million, representing an alarming trend of -***.**% compared with ****.

Foreign trade in wheat flour in Spain Spain, ****, $ million Source: ****

Imports:

In ****, Spanish flour imports came mainly from various European countries. France was the main supplier, accounting for **.*% of total imports, closely followed by Sweden with **.*%. Italy and Portugal also played an important role, contributing **.*% and **.*% of imports respectively. Other European countries, such as Poland, Germany and Belgium, were also significant sources of imports, accounting for *.*%, *.*% and *.*% respectively. Outside Europe, the rest of the world contributed *.*% of total imports. This breakdown highlights the diversity of Spain's flour supply sources, with a strong dependence on neighboring European countries to ...

2.1 Consumption in Spain

In ****, **% of flour produced in Spain was destined for the bakery and bread sector. The remaining **% was destined for other uses, such as the manufacture of industrial cakes or direct sales to consumers.

Destination of flour production Spain, ****, % of production Source: ****

Over the period **** to ****, consumption of flour and semolina in Spain experienced significant fluctuations due to the covid-** pandemic. In ****, consumption stood at ***.** million kilograms, rising slightly to ***.** million kg in ****. In ****, a sharp increase was recorded, reaching ***.** million kg, a notable increase of **.*% on the previous year. However, this exceptional increase due to the covid ** crisis, was followed by a significant drop in ****, with consumption of ***.** million kg, marking a decrease of **.*%. Finally, in ****, consumption continued to fall, reaching **.*** million kg, down **.*% on the previous year.

Flour and semolina consumption by volume in Spain Spain, ****-****, million kg Source: ****

Finally, in ****, average per capita consumption of flour and semolina in Spain was *.** kilograms per person. At the same time, average per capita expenditure on these products was €*.** per person.

Flour and semolina consumption and expenditure per capita Spain, ****, kg/person, €/person Source: ****

2.2 Consumer profile

In ****, the breakdown of flour and semolina consumption in Spain shows diversity according to consumer age. The data show that people under the age of ** account for **.**% of total consumption, while consumers aged ** to ** make up the largest share, at **.**%. The **-** and **+ age groups account for similar proportions of total consumption, with **.**% and **.**% respectively.

Breakdown of consumption by consumer age Spain, ****, % (***) Source: ****

Consumption also varies according to consumer status. The data reveal that retired people account for the largest share of consumption, at **.*%. They are followed by couples with middle-aged children, who contribute **.*%, and couples without children, with **.*%. Couples with young children and couples with older children account for **.*% and **.*% of total consumption respectively. Young couples without children contribute *.*%, while single adults and single-parent households account for smaller shares, at *.*% and *.*% respectively. Young self-employed people account for the smallest percentage of consumption, at just *.*%.

Flour and semolina consumption by consumer situation Spain, ****, % volume consumption, % Spanish population. Source: ****

Finally, according to socio-economic class, the data show that the middle class accounts for the largest share of consumption, with **.**%. This is closely followed by the lower class, which contributes **.**%. The lower-middle, upper-middle and upper-middle classes contribute **.**% and **.**% respectively to the country's total ...

2.3 Consumption by CCAA

Per capita consumption :

According to per capita flour consumption data for Spain's Autonomous Communities provided by the Ministerio de Agricultura, Pesca y Alimentación, the three Autonomous Communities with the highest per capita consumption are the Canary Islandss with the highest per capita consumption are the Canary Islands (***). There is a trend towards higher consumption in island regions and those in the north of the country.

Consumption by volume :

The Autonomous Communities with the highest percentages of total flour and semolina consumption are Catalonia (***).

2.4 Consumer trend: gluten-free

With an estimated growth rate of *.*% for the gluten-free flour market worldwide between **** and ****, this appears to be an additional outlet for flour manufacturers. Between *% and *% of the world's population has been diagnosed as celiac and is therefore unable to eat gluten.

The gluten-free sector has a number of points to highlight: Increased visibility of people with celiac disease: The increased visibility of this disease implies new consumer trends in the market. Expansion of the range of gluten-free products: Between **** and ****, the number of gluten-free products available in supermarkets rose from *** to *,***. Spain is the third most innovative country for gluten-free products, after Brazil and the USA. Challenges linked to the cost of gluten-free products: The purchase of gluten-free products can entail significant additional costs for consumers. For example, a family with a single celiac member can see their grocery bill rise by around ** euros a month, or *** euros a year, due to the higher prices of gluten-free products compared to conventional products. Search for alternative solutions: Researchers are exploring techniques such as genetic modification to produce gluten-free wheat. However, despite advances in research, this approach is still a long way from commercialization due to regulatory and technical challenges. Source :[***] Gluten-free ...

3.1 Value chain

The following chart summarizes the value chain in the Spanish flour market:

Agricultural production: The value chain begins with the cultivation of cereals, mainly wheat, which is the main raw material for flour production. Farmers grow and harvest wheat on their farms. Processing: Once harvested, the wheat is transported to the mills, where it is transformed into flour. This stage involves cleaning the wheat, grinding it in millstones or industrial grinders, sifting it to separate the flour from the other components of the grain, and finally packaging the finished product. Distribution and logistics: milling companies then distribute the flour to the various market players, such as supermarkets, hypermarkets, bakeries, pastry shops, food industries, etc. This distribution can take place via a number of different channels. This distribution can take place via different sales channels, such as wholesale, retail and even e-commerce. Final processing via the end consumer: End customers, whether individual consumers or food companies, use flour for the production of various food products such as bread, pastries, pasta, cookies, pizzas, etc. This stage represents the final step in the value chain, where flour is transformed into finished products ready for consumption.

3.2 Production

To study the flour market, we will use theINE statistical code CNAE *** "Fabricación de productos de molinería, almidones y productos amiláceos". This code includes all milling activities, i.e. the manufacture of milling products, starches and starch products.

In ****, the number of companies in this sector was ***, before declining by *. *% to *** companies in ****. In ****, a slight increase was recorded, taking the number to ***, up *.*% on the previous year. However, in ****, the number fell back to *** companies, marking a decrease of *.*%. Finally, in ****, the number of milling companies rose slightly to ***, an increase of *.*% on the previous year. There is a relative stagnation in the limited number of companies in this market. In ****, there were just * fewer companies than in ****.

Trend in the number of mill producers Spain, ****-****, number Source: ****

The number of employees in **** was *,***. This figure rose slightly in **** to *,***, an increase of *.**%. In ****, although the number remained relatively stable at *,***, there was a slight decrease of *.**%. However, a further increase was noted in **** with *,*** employees, marking growth of *.**%. Finally, in ****, a significant increase of *.**% was recorded, bringing the total number of employees to *,***. Thus, this sector gained over *** employees between **** and ****.

Change in the number ...

3.3 Distribution

In ****, the flour and semolina market in Spain will be dominated by supermarkets, with a preponderant share of **.*%. Hypermarkets also hold a significant share, with **. *%. Hard discount stores maintain a significant presence with a **.*% market share, while traditional stores and other channels have relatively more modest shares, at *.*% and *% respectively. On the other hand,e-commerce shows a growing but still limited presence, with a market share of *.*%.

Market share by distribution channel Spain, ****, % (***) Source: ****

In ****, flour and semolina prices vary according to the different distribution channels in Spain. Supermarkets offer themost competitive prices, with an average tariff of €*.**/kg, closely followed by e-commerce at €*.**/kg. Hypermarkets offer slightly higher prices at €*.**/kg, while hard discount stores offer the lowest prices, averaging just €*.**/kg. By contrast, traditional stores and other channels offer relatively higher prices, averaging €*.**/kg and €*.**/kg respectively. The national average price for flour and semolina is €*.**/kg.

Average "Flour and Semolina" price in €/kg by distributor Spain, ****, €/kg Source: ****

4.1 Typology of supply and uses

There are two types of flour. Refined or white flour and wholemeal flour. The difference between refined and wholemeal flour lies in the manufacturing process. Refined flour is produced by removing the outer layer of the wheat kernel, called the bran, and the germ, which contains most of the nutrients such as fiber, minerals and antioxidants. This refining process gives the flour a finer texture and a lighter, usually white, color. In contrast, wholemeal flour retains these parts of the grain, giving it a darker color and a higher nutritional content in fiber, minerals and antioxidants. As a result, wholemeal flour has a greater impact on health, as it retains the essential nutrients of the wheat grain. Nevertheless, it is much less widely used than white flour.

Refined flour :

Manufacturing process: Bran and germ are removed during the manufacturing process. Nutritional composition : Less rich in fiber, minerals and antioxidants due to the removal of bran and germ. Degree of extraction: Less than ***%, as part of the grain is removed. Color: White, as it contains no bran.

Complete flour :

Manufacturing process: Bran and germ are retained during the manufacturing process. Nutritional composition : Richer in fiber, minerals and antioxidants due to the presence ...

4.2 Prices

Between **** and ****, the consumer price index (***) for "Flour and other cereals" in Spain saw high inflation. In ****, the index recorded a slight increase to **.** points, rising further in **** to **.** points, then *** in ****, the benchmark year. However, from **** onwards, the index increased dramatically, reaching ***.** points in **** and rising further to ***.** points in ****. This upward trend continued into early ****, with indices of ***.** in January, ***.** in February and ***.** in March ****.

Change in the consumer price index (***) base ***, ****, for "Flour and other cereals". Spain, ****-****, index base ***, **** Source: ****

4.3 The importance of packaging

The flour sector in Spain attaches great importance to packaging, which is seen as a crucial means of persuading consumers and differentiating products in a constantly evolving market. Packaging thus appears to be decisive in consumers' choice of flour. Flour packaging can be differentiated according to the following criteria:

Variety of packaging materials: The flour range's packaging is mainly made of paper, but also includes variants in textile, recyclable or recycled materials, reflecting a concern for sustainability and the environment. Detailed nutritional information: In addition to providing detailed nutritional information such as energy value and fat, carbohydrate, protein and fiber concentrations, the packs also match the type of flour to its use, making it easier for consumers to choose. Instructions and recipes included:Some packs include complete recipes for the preparation of specific products, while others convey the manufacturing process, offering additional information value. Emotional messages: Beyond functionality, emotional messages also play an important role in flour packaging, creating an affective connection with the consumer and reinforcing their purchasing decision. These messages are created by the marketing elements (***).

Source: ****

5.1 Regulations

Real Decreto ***/****, de ** de diciembre, establishes the legal framework around the flour trade. Flour quality regulations aim to ensure the integrity of raw materials and guarantee adequate information for consumers. Standards are set for cereal grains, which must be sound and marketable, with a moisture content not exceeding **%. In addition, additives and enzymes are authorized within the limits of permitted doses.

As far as information on foodstuffs is concerned, labelling must contain the legal name of the product, storage instructions and minimum or expiration dates. Voluntary information on baking quality, durum wheat semolina quality and other technical characteristics is also permitted. For industrial products, compulsory information may be included on commercial documents, provided that it is clearly stated that the product is not intended for retail sale.

Spanish regulations concerning flour characteristics are detailed and precise. They aim to guarantee the quality and conformity of flour products on the Spanish market, thus ensuring transparency and consumer protection. The main regulations include:

Wheat flour characteristics: Moisture less than or equal to **%, with a tolerance of *.*%. Percentage of foreign flour less than or equal to *%. Ash content on dry matter varying according to flour type. Baking quality : Classification according to protein content, with ...

5.2 Classification of flours according to baking quality

Real Decreto ***/****, de ** de diciembre, defines the following criteria to define the strength of a flour:

Source: ****

6.1 Segmentation

Top ** flour companies in Spain by sales

Source: ****

• Grupo Harinera Vilafranquina, S.A
• Grupo Harinera La Meta, S.A
• Grupo Harántico
• Harinera Arandina, S.A
• Harineras Villamayor, S.A.
• Antonio Cano e Hijos, S.A.
• Grupo Regany
• Harinas Polo, S.A