The flour market - Spain

Flour is a powder obtained by grinding several cereals or agricultural products. It is one of the main foodstuffs used by many people around the world. Flour is used to make pasta, cakes and all kinds of bread. On a global scale, the flour market has grown steadily, driven by the expansion of the world's population and the use of flour-based recipes. Turkey is the world's leading exporter of flour, ahead of Germany, the United States, Kazakhstan, Italy and Russia. These exports are crucial, as many parts of the world are unable to cover their food consumption of flour through domestic production. Between 2020 and 2021, flour exports increased by 0.91%[The Observatory of Economic Complexity].The war in Ukraine has had a major impact on the flour market. Europe's breadbasket, Ukraine was the world's 4th largest wheat exporter in 2021. The blocking of the country's wheat exports has led to a real food crisis, with shortages and sharp price rises. In Spain, the flour market is relatively concentrated, with five companies standing out from the crowd: Harinera Vilafranquina, Grupo Harántico, Maicerías Españolas, Grupo Pastas Gallo and Harinera La Meta. The boom in flour consumption at home due to the pandemic and forced confinements did not last, and consumption returned to normal in 2021. The country will not escape inflationary pressures and flour scarcity in 2022, with tensions over supplies and strong export demand.