Major players in the organic bakery products manufacturing market are Flower Foods, Inc., Hain Celestial Group (Rudi’s Bakery), Manna Organics LLC, Toufayan Bakery, Inc, Mestemacher GmbH, United States Bakery, Alvarado Street Bakery, Flowers Food (US), Natures Bakery Cooperative, and New Horizon Foods, Inc.(US).
The Global Organic Bakery Products Market is expected to grow from USD 9.5 billion in 2019 and to USD 9.7 billion in 2020 at a growth rate of 2.5%. The slow growth in 2020 is mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach USD 11.61 billion in 2023 at CAGR of 6.06%.
The organic bakery products manufacturing market consists of sales of organic bakery and related products. Organic bakery products are made using organic ingredients such as wheat gluten, milk, butter, honey, eggs, oils, starch, sugar, spices, raisins, cereals, grain flours and meat-based ingredients. To meet the requirements of organic certification the manufacturers produce organic bakery products as per the set guidelines of the food safety organizations of their respective countries.
Europe was the largest region in the organic bakery products market in 2019.
Certifying and labeling organic bakery products follows very strict and unwavering guidelines and is hampering the growth of the organic bakery products market. For a product to be considered certified organic, the product must not be produced using any genetic engineering, irradiation, and must be comprised solely of ingredients included on the National List of Allowed and Prohibited Substances. For instance, in United States, the production of organic bakery products must be overseen by the United States Department of Agriculture National Organic Program. Therefore, following all the mandatory guidelines and meeting the certification requirements will hamper the growth of the organic bakery products market.
The organic bakery products manufacturing market covered in this report is segmented by product type into bread & rolls; savory snacks; cakes & pastries; cookies & biscuits; others. It is also segmented by distribution channel into wholesalers/ distributors/ direct; supermarkets/ hypermarkets; convenience stores; online retailers; other retail formats and by category into gluten-free; sugar-free; low-calories.
The use of innovative technology for enhanced taste and flavor is the trend in the organic bakery products manufacturing market. The rising preference for organic bakery products among consumers, owing to their health benefits is motivating manufacturers to use innovative technology and methods to offer new organic bakery products with enhanced taste and flavor. The manufacturers are trying to study new methods to increase the shelf-life of the products such as the use of natural preservatives along with enhanced taste till the time of consumption.
In December 2018, Flowers Foods, Inc., U.S. based largest producer of freshly packaged bakery food announced the acquisition of Canyon Bakehouse LLC, a private company engaged in manufacturing gluten-free baked products based in Johnstown, Colo for an undisclosed amount. The acquisition is expected to add Canyon’s gluten-free innovative products to Flowers Foods’s product portfolio, in order to expand the company’s consumer base.
Increasing consumer preferences towards healthy ingredients is a major driver for the organic bakery products market. The growing urbanization is leading to hectic lifestyles and unhealthy eating options which has resulted in lifestyle disorders and deterioration of health of the consumers. Therefore, changing consumer preference is forcing manufacturers to switch to the use of organic ingredients such as organic baking powder, gluten-free powder, and aluminum-free baking powder. Moreover, the rising disposable income of the population is expected to contribute to the higher demand for organic bakery products in the near future. According to Trading Economics, the disposable personal income in India increased to USD 2,971,770 million in 2019 from USD 2,964,090 million in 2018.
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Ankur Gupta, Head Marketing & Communications