Organic Bakery Products Market

Organic bakery products like cookies, rolls, biscuits, savory snacks, bread, cakes, and others are increasing in popularity as consumer preferences shift towards healthier and organic options. These products are higher in protein, dietary fiber, calcium, and other minerals, and they are free of synthetic chemicals and pesticides, making them healthier than conventional bakery products. People with celiac disease, as well as the general health-conscious population, consume gluten-free foods. The demand for gluten-free products stems from the notion that sugar-free and gluten-free foods can aid in weight loss and managing other health issues such as diabetes, obesity, and indigestion.

Thus, organic bakery products that claim to be fat-, sugar-, gluten-free, whole wheat, and salt-free are growing popular among health-conscious customers.

Moreover, celiac disease, also known as gluten-sensitive enteropathy or celiac sprue, is an immune reaction to gluten, a protein found in barley, wheat, and rye used to produce various bakery products. Eating gluten creates an immune reaction in the small intestine in people with celiac disease. The Celiac Disease Foundation estimated that approximately 1 in 100 people worldwide had the celiac disease in 2021. Similarly, Beyond Celiac estimates that 1 in 133 Americans, or about 1% of the population, have celiac disease. This contributes to the demand for organic bakery products that are free of gluten.

Moreover, consumers prefer natural, vegan, and additive-free products, which has resulted in the launch of numerous free-from products by key players, propelling the expansion of organic bakery products market revenue. Furthermore, the government's increased support for organic food consumption due to the associated health benefits is expected to drive the growth of the organic bakery products market CAGR.

The increasing awareness of health and wellness among consumers appears to be a primary driver of the Global Organic Bakery Products Market Industry. As individuals become more conscious of their dietary choices, the demand for organic products, which are perceived as healthier alternatives, continues to rise. This trend is reflected in the projected market value of 79.7 USD Billion in 2024, indicating a robust consumer preference for organic ingredients. Furthermore, the shift towards clean label products, which emphasize transparency and natural ingredients, suggests that organic bakery items are likely to gain further traction in the coming years.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The European Organic Bakery Products market accounted for USD 34.25 billion in 2022 and will likely exhibit a significant CAGR growth over the study period. In European nations, bakery items are consumed as a staple food. The European market is well-established regarding product offerings, distribution networks, supply chains, regulatory regulations, innovation platforms, and customer preferences.

In addition, there is a noticeable change in the European organic bakery products sector owing to healthy food concerns, surging disposable income, and a higher demand for handy food products. Cakes, desserts, and cookies fall into the category of indulgences, where inventions and new product developments are increasingly seen. The emergence of a healthy lifestyle has boosted German breakfast food sales. In Europe, new startups establish themselves, bringing more outlets and new baking technology.

Further, the major countries studied in the market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.

Figure 2:  ORGANIC BAKERY PRODUCTS MARKET SHARE BY REGION 2022 (%)Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

The North American organic bakery products market accounts for the second-largest market share. A well-established food and beverage industry and increasing consumer adoptions of a healthy lifestyle within regional countries are expected to propel the organic bakery products market forward. The United States, Canada, and Mexico are among the countries with the highest consumption of organic bakery products. Additionally, North American consumers are interested in organic bread and roll as breakfast foods, which will drive market sales. Moreover, increasing consumer demand for clean-label, gluten-free bakery products and increasing organic producers are expected to impact regional market growth positively.

Consumers also want transparency and integrity in the food supply chain and food free of toxic synthetic additives, driving up demand for organic bakery products in the region. Further, the U.S. organic bakery products market held the largest market share, and the Canadian organic bakery products market was the fastest-growing market in the North American region.

The Asia-Pacific Organic Bakery Products Market is projected to grow at the fastest CAGR from 2022 to 2030. A growing population and a shift in consumer preferences away from rice towards wheat-based foods like bread, as well as the preference of the emerging middle class for convenient packages of baked cookies, are driving the market for organic bakery products in the region. South Asian emerging markets, on the other hand, are driving biscuits and bread sales due to the increased demand for convenient packaged foods.

Trends in health and well-being continue to influence the development of new products in the Asia Pacific organic bakery products industry. Moreover, China’s organic bakery products market held the largest market share, and the Indian organic bakery products market was the fastest-growing market in the Asia-Pacific region.

The organic bakery products industry is highly competitive, especially given the significant presence of numerous  and regional players. Major market players invest heavily in researching and developing innovative methods and technologies for manufacturing organic and gluten-free bakery products. Competitors in the organic bakery products industry are also searching for novel approaches to increase the shelf life of their products.

The organic bakery products market major players, such as Nutri-Bake Inc, Flowers Food, Soyfoods Ltd, Manna Organics LLC, and others, use various corporate strategies, such as product innovations and developments, to meet the needs of consumers. In addition, market participants are launching new products, entering contracts, acquiring companies, increasing R&D investments, and working with other organizations, among other significant market developments, to expand their footprint. One of the central business strategies manufacturers use in the organic bakery products industry to benefit customers and expand the market sector is local manufacturing to lower operating costs.

Mondelez International Inc is a multinational food and beverage corporation. The company manufactures and sells packaged food products such as snacks, beverages, cheese, ready-to-eat meals, and other organic bakery products. Mondelez International's products are sold all over the world. Mondelez International Inc. purchased Chipita SA, a multinational baker of packaged pastries and cakes, in January 2021. The company produced various goods, primarily sold under 7Days, Chipicao, and Fineti brands, including croissants, bagels, biscuits, cake bars, and spreads.

Mondelez intends to use Chipita's Central and Eastern European distribution system to broaden its regional distribution while introducing its brands to new countries in the region and beyond.

Also, Finsbury Food Group Plc is a specialty bakery manufacturing company based in the United Kingdom of cake, bread, and breakfast products. The company sells bread and cakes under various brands and distribution channels, providing its branded and licensed bread and cakes to retailers and the food service sector throughout Europe and the United Kingdom. Finsbury Food Group introduced organic Bundt cakes in September 2021 to expand its Mary Berry supermarket cake selection to serve the organic bakery products industry. Organic Bundt cakes are available in two flavors: chocolate and lemon.

The chocolate cake has icing and hand-decorated Belgian dark & white chocolate curls. The lemon cake has lemon curd drizzle and lemon icing.