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The organic bakery products such as cookies, biscuits, bread, cakes, and others are gaining traction due to the shifting consumer preferences towards healthy and organic products. These products contain protein, dietary fibers, calcium, and other minerals along with being free from any synthetic chemicals and pesticides which makes them healthier than its conventional variants. Along with this, the mass consumption of bread and biscuits worldwide on daily basis is the main reason driving the market growth. Further, the rising acceptance of convenience foods due to the fast-paced and hectic lifestyle of the consumers positively aids in market growth.
The rise in consumption of organic bakery products by consumers due to their growing environmental concerns and improvement in the standard of living has propelled the market growth. Further, the increased support from the government to promote organic food products consumption due to their associated health benefits is anticipated to boost the market growth.
The rising inclination of consumers towards clean-label and organic products due to their growing food safety and quality concerns is a major factor driving market growth. The consumers are demanding healthy and organic food ingredients that are free from any synthetic and harmful chemical additives. Further, the growing food industry and increase in product innovations by the organic bakery products manufacturers have supported the market growth.
Key Market Driver -
Increasing Inclination of Consumers toward Organic and Clean-label Products
Key Market Restraint -
Fluctuations in Raw Material Price and High Product Price
The fluctuations in the price of raw material such as organic wheat lead to variations in the overall price of the products which acts as a restraint in the market growth. According to the Food and Agriculture Organization (FAO), the international wheat prices declined due to harvest progress pressure in the Northern hemisphere and improved production prospects in several exporting countries in 2020-21. Further, the comparatively high price of organic products than its conventional variants also acts as a constraint. In emerging economies such as India, China, and Thailand the consumers are price conscious and hence, prefer the conventional variant over organic.
The key companies operating in the global organic bakery products market are Flower Foods, Inc., The Hain Celestial Group, Inc., Toufayan Bakery, Inc., Manna Organics LLC, Nature’s Bakery Cooperative, Alvarado Street Bakery, Grupo Bimbo, S.A.B. de C.V., Finsbury Food Group Plc, Honeyrose Bakery Ltd., and United States Bakery.
The bread segment is anticipated to hold the largest share in the market owing to the wide consumption of bread as a staple food and provides many essential nutrients to the body. The consumers these days widely prefer organic, fortified, and clean-label variants in bread due to their rise in health consciousness and is expected to positively drive the market growth.
The hypermarkets and supermarkets are expected to emerge as one of the most preferred sales channels for purchasing organic bakery products. This mainly owing to the presence of several in-store bakeries in the supermarkets, that allows the consumers to purchase freshly baked products coupled with a wide variety of options.
North America is anticipated to witness significant growth in the market owing to the increasing consumer demand for organically produced foods. According to the Organic Trade Association (OTA), organic food sales in the U.S. rose by 5.9% in 2018. Along with this, the organic food sales consisted of 5.7% of the overall food sales in the country the same year. The consumers are seeking transparency and integrity in the food supply chain and want their food free from toxic synthetic additives, which has bolstered the demand for organic bakery products in the region.
Europe is expected to hold immense potential for the market to grow, mainly due to the increasing consumption of baked products such as bread and biscuits. The U.K., the Netherlands, and Bulgaria are among the highest organic bakery products consuming countries. Further, the rising consumers' demand for clean-label, gluten-free bakery products coupled with the rise in the number of organic producers is anticipated to positively boost the regional market growth.
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