Home > News

Flour processing market analysis

<<Previous  Next>>

In the flour processing market, the annual wheat processing capacity is 233 million tons, the large and medium-sized enterprises have an annual wheat processing capacity of 214 million tons, and the small, medium and micro enterprises have an annual wheat processing capacity of 19.35 million tons. In 2019, the total number of small, medium and micro flour enterprises was 2,600, and there were 1,600 enterprises above designated size, a decrease of 7.25% and 7.14% respectively over the previous year. At the end of the year, the total production capacity of flour processing enterprises was 235 million tons, of which the capacity of enterprises above designated size was 215 million tons and that of small enterprises was 19.53 million tons. Among them, the average production capacity of large enterprises is 384 tons of wheat per day, and the average production capacity of small and micro enterprises is 21 tons of wheat per day.

In recent years, due to the improvement of Chinese residents' consumption structure and health awareness, the demand for high-quality and high-gluten flour has been increasing. As the pace of modern economic life accelerates, quick-freezing, frying, and steaming of flour also show more and more trends. The competition among flour companies has become more intense, and the annual operating rate is much lower.


From the analysis of the macro market environment, the current grain processing enterprises are in a state of overcapacity. The total operating rate of all enterprises is 48.90%, and the profit rate of the whole industry is less than 2%.If an enterprise wants to win in such fierce competition, on the one hand, it must pay more attention to products. Develop circular economy, deep processing of grain, and extend raw material consumption industry. The industrial chain configuration model of "wheat storage + flour noodle processing + large-scale logistics + multi-channel sales" will reduce total operating costs. Supplement new profit models to enhance corporate competitiveness. On the other hand, we must do a good job in product marketing, expand brand awareness, and focus on brand building.