Growing Awareness About Health & Nutrition Benefits of Flaxseeds Boost The Market
The global flax seeds market size is estimated to grow by USD 1.50 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 15.42% during the forecast period. Growing awareness about the health benefits of flaxseeds is driving market growth, with a trend towards wide reach through organized retailing. However, fluctuating prices of flaxseeds and product recalls pose a challenge. Key market players include AgMotion Inc., Archer Daniels Midland Co., Bioriginal Food and Science Corp., Bradley Caldwell Inc., BTL Herbs and Spices Pvt. Ltd., CanMar Foods Ltd., Eastmade Spices and Herbs Pvt. Ltd., Gingerly Naturals P. Ltd., Global Resource Direct LLC, Grain Millers Inc., Healthy Food Ingredients LLC, Howe Seeds, KRBL Ltd., Linwoods Health Foods, Merck KGaA, Mother Herbs P Ltd., Mr Fothergills Seeds Ltd., Pragati Agribiz Pvt. Ltd., Satva Industries, and TA Foods Ltd.
Market Driver
Organized retailers, including supermarkets and hypermarkets, have become the primary distribution channels for superfoods like flax seeds. Supermarkets cater to a significant portion of consumers’ food needs, offering nutritious and affordable options. With population growth and increasing urbanization, particularly in countries like India, the demand for supermarkets is rising. Major retailers, such as Reliance Fresh, Aditya Birla Retail, Food World, Spencer’s, Walmart, and JD, play a crucial role in supplying fresh foods, including flax seeds. The COVID-19 pandemic has shifted consumer shopping behavior, leading to a surge in online orders from supermarkets. Retailers are investing in omnichannel offerings to cater to evolving consumer preferences and retain customers. For instance, JD opened its first omnichannel supermarket in China in April 2021. This trend of wide market reach through organized retailing is expected to fuel the growth of the global flax seeds market.
Market Challenges
The flax seeds market has experienced significant raw material cost increases due to a supply-demand imbalance. This price hike not only raises manufacturing costs but also decreases profit margins for vendors. To remain competitive, manufacturers explore cheaper alternatives. Suppliers hold the power to set competitive and varying prices. For instance, US flax seed prices jumped from around USD8.0/bushel (bsh) in September 2020 to nearly USD20/bsh in May 2021. Proper handling of raw materials is crucial to ensure product safety and quality, as regulatory authorities can shut down businesses and recall products for consumer safety concerns. Manufacturing and packaging defects further hinder market growth.
Research Analysis
Flax seeds, also known as linseeds, are a popular edible crop rich in essential nutrients. They come in two forms: flaxseeds and flaxseed oil. Flax meal is the byproduct of flaxseed processing. Both flaxseeds and flaxseed oil are valuable sources of omega-3 fatty acids, fiber, proteins, and various minerals like calcium. Flaxseeds are used for human consumption as a healthy addition to meals. While flaxseed oil is used for cooking and as a dietary supplement. Flaxseeds also serve as an essential ingredient in animal feed and industrial applications. The seeds are also rich in antioxidants, which help prevent heart disease, diabetes, and cancer. Quinoa seeds are sometimes mistakenly referred to as flax seeds, but they are not related. Flaxseed exports have been increasing due to their numerous health benefits and growing demand.
Market Research Overview
Flax seeds, also known as linseeds, are a rich source of essential nutrients, including omega-3 fatty acids, fiber, and various minerals such as calcium, phosphorus, potassium, and magnesium. They are commonly used in human consumption, particularly in the bakery industry for making bread, pastries, and baked goods like muffins, cookies, and pancakes. Flax seeds are also used as an egg alternative in vegan and vegetarian diets. Flax seeds are also used in animal feed and as industrial seeds. They are a popular ingredient in functional food and beverages, including breakfast cereals, energy bars, juices, and ice creams. Flax seeds are known for their blood pressure-lowering properties and are used as a natural blood thinner.
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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