|Base Year Market Size
|USD 73.6 Billion
|Forecast Year Market Size
|USD 126.47 Billion
|Fastest Growing Market
The global organic bakery products market size was valued at USD 73.6 Billion in 2022 and is projected to reach USD 126.47 Billion by 2031, registering a CAGR of 6.2% during the forecast period (2023 to 2031). Consumers' increased use of organic bakery products due to their growing environmental concerns and improved standard of life has fueled the organic bakery products market growth.
Organic bakery products are a subgroup of the bakery sector that focuses on baking with organic ingredients. These items are manufactured using components not grown or processed with synthetic pesticides, herbicides, genetically modified organisms (GMOs), or chemical additives. Bread, pastries, cakes, cookies, muffins, and other goods are available in the organic bakery products market.
Increasing consumer preference for clean-label and organic products due to their growing food safety and quality concerns is a major driver driving market expansion. Consumers want healthy, organic products devoid of synthetic and dangerous chemical additions. Furthermore, the expanding food sector and increased product innovation by organic bakery product manufacturers have bolstered the global market share.
Consumers are growing more health-conscious and looking for healthier eating alternatives. Organic bakery products are healthier because they are manufactured from organic, non-GMO ingredients and are frequently free of chemical additives and preservatives. According to a Nielsen study, 43% of worldwide customers value the absence of artificial flavors and colors when purchasing food goods. Many organic bakery items are free of artificial additives, corresponding to this preference for natural components.
According to the Whole Grains Council, sales of whole grain products have been consistently increasing. In the United States, for example, sales of whole-grain bread increased by 9.2% in 2020. Many organic bakery goods use whole grains high in fiber and nutrients, such as whole wheat or oats. Whole grain-containing organic bakery items are popular among consumers looking for healthier alternatives. Organic bakery items frequently include reduced-sugar or sugar-free options to address the need for healthier alternatives. This appeals to people who are health-conscious about their sugar intake. As a result, the organic bakery products market trend is evolving. Finally, consumers increasingly seek bakery foods that meet their health goals, dietary limitations, and preferences for clean, natural ingredients. This demand has fueled the rise of the organic bakery sector, with manufacturers responding by supplying diverse products to these health-conscious customers.
Compared to traditional agriculture, organic farming practices, such as using organic seeds, natural fertilizers, and insect control methods, frequently result in higher production costs. This translates to greater ingredient costs for organic bread product manufacturers, which can be difficult to manage without raising consumer pricing. Organic materials, such as flour, cereals, and sugars, can be much more expensive. According to the United States Department of Agriculture (USDA), organic wheat prices have consistently been higher than conventional. This increase in the cost of organic ingredients directly impacts the overall cost of manufacturing organic bread products. Manufacturers frequently pass on some of these cost increases to customers, resulting in higher organic bakery retail pricing.
Furthermore, organic certification is associated with inspection, auditing, and compliance verification fees. The cost of certification varies based on the certifying agency and the size of the operation. According to the USDA, certification prices can range from hundreds to thousands of dollars annually. As a result, organic bakery products' premium pricing may limit their accessibility to price-sensitive consumers, potentially lowering market size.
The growth of online selling allows organic bread product manufacturers to access a larger audience. E-commerce enables the direct sale of products to consumers and allows smaller businesses to compete globally. The rise of e-commerce has had a huge impact on the food business. According to Statista, global e-commerce sales of food and beverages are expected to exceed 24 billion USD by 2022.
Furthermore, E-commerce behemoths like Amazon have experienced a significant increase in selling organic items. Amazon announced that sales of organic groceries on its marketplace increased by more than 30% in 2020. Organic bakery product makers can expand their reach by utilizing online marketplace platforms such as Amazon, Alibaba, and others. These platforms provide a large client base and logistical support, allowing producers to market their products to a larger audience. According to organic bakery products market insights, organic bakery brands can compete in an increasingly digital retail by embracing digital platforms and e-commerce.
The global organic bakery products market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
North America is the most significant global organic bakery products market shareholder and is estimated to grow at a CAGR of 4% over the forecast period. The market will increase significantly due to rising customer demand for organically produced goods. The United States, Canada, and Mexico have the largest per capita consumption of organic bread products. Furthermore, organic bread and rolls are popular morning items in North America, enhancing market sales. Furthermore, rising consumer demand for clean-label, gluten-free bakery items and an increase in organic producers are likely to boost regional market growth. Consumers also seek openness and integrity in the food supply chain and food free of hazardous synthetic ingredients, driving rising demand for organic bread items in the region.
Furthermore, the organic bakery goods market in the United States had the biggest market share. In contrast, Canada's organic bakery products market was the fastest-growing market in the North American area. According to the Organic Trade Association (OTA), organic food sales in the United States increased by 5.9% in 2018. In addition, organic food sales accounted for 5.7% of total food sales in the country that year. Consumers expect openness and integrity in the food supply chain and food free of hazardous synthetic ingredients, increasing demand for organic bread products in the region.
Europe is anticipated to exhibit a CAGR of 4.3% over the forecast period. Europe is predicted to have enormous market growth potential, owing mostly to the rising consumption of baked goods such as bread and biscuits. The United Kingdom, the Netherlands, and Bulgaria are among the countries with the largest consumption of organic bread products. Supermarkets are big retail establishments that provide a wide range of goods, including organic bakery items. They make it easier for customers to accomplish their supermarket shopping in one location. Organic baking items are frequently found in supermarket bakery areas. Supermarkets provide a one-stop shopping experience, allowing customers to browse and buy organic bakery products and other commodities. They frequently provide a large assortment of organic options. Convenience stores, also known as corner stores or petrol stations, are small retail establishments that primarily serve customers seeking quick and easy purchases. While selecting organic bread products in convenience stores may be limited compared to supermarkets, they stock products for on-the-go consumption. Furthermore, increased consumer demand for clean-label, gluten-free bakery items, and increased organic producers are expected to support regional market growth favorably.
The Asia-Pacific market is expected to develop at the quickest CAGR during the forecast period. A growing population is driving the region's market for organic bakery products, a shift in consumer tastes away from rice and wheat-based foods like bread, and the inclination of the emerging middle class for convenient packages of baked cookies. Due to rising demand for convenient packaged meals, South Asian emerging markets are driving biscuit and bread sales. Health and well-being trends continue to impact new product development in the Asia Pacific organic bakery products sector. Furthermore, China's organic bakery products market had the biggest market share, while India's organic bakery products market was the Asia-Pacific region's fastest-growing market.
LAMEA, which includes Latin America, the Middle East and Africa, is affected by health consciousness, environmental concerns, and the expansion of internet retail. While there are chances for expansion, there are also constraints relating to price sensitivity and regional regulations.
|By Product Type
|By Distribution Channel
|The Hain Celestial Group Inc. Flower Foods Inc. Honeyrose Bakery Ltd. Toufayan Bakery Inc. Natures Bakery Cooperative Alvarado Street Bakery Grupo Bimbo S.A.B. de C.V. Manna Organics LLC Finsbury Food Group Plc United States Bakery
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global organic bakery products market is segmented based on type. Application and region.
Type is further segmented into Bread, Bagels, Biscuits and Cookies, Cakes and Pastries.
Bread is a significant contributor to the market. Bread comprises organic breads such as whole wheat, multigrain, sourdough, and specialty breads such as ciabatta or focaccia. Organic bread is a bakery staple renowned for its healthful ingredients and natural flavors. Because of their increased health consciousness, customers now prefer organic, fortified, and clean-label bread types, which will positively boost the market growth.
Organic cookies and biscuits are the next major sub-segment in the industry. This subsegment includes various varieties and flavors of organic biscuits and cookies. Organic biscuits may include shortbread or tea biscuits, while organic cookies may contain chocolate chips, oatmeal raisin, ginger snaps, and other flavors. These items are well-known for their natural ingredients and delectable taste.
The segment can be further bifurcated by application into Supermarkets, convenience stores, specialty stores, and online retail.
Supermarkets occupied the largest share of the market. Supermarkets are big retail establishments that provide a wide range of goods, including organic bakery items. They make it easier for customers to accomplish their supermarket shopping in one location. Organic baking items are frequently found in supermarket bakery areas. Supermarkets provide a one-stop shopping experience, allowing customers to browse and buy organic bakery products and other commodities. They frequently provide a large assortment of organic options.
Convenience stores, also known as corner stores or petrol stations, are small retail establishments that primarily serve customers seeking quick and easy purchases. While selecting organic bread products in convenience stores may be limited compared to supermarkets, they stock products for on-the-go consumption.