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Recording revenue of nearly US$9 Bn in 2021, the global flax seed market is thriving in the light of a rich dietary profile of flax seeds. The primary analysis of the market reveals a promising outlook for the next few years.
Market Analysis in Brief
Increasing knowledge about the health advantages of flax seeds is one of the main factors driving the revenue of the flax seed market. The demand for flax seeds has increased rapidly, recently, in line with an expanding health-conscious consumer cluster. Flax seeds can be pulverized to create oil and grain, and flax meals for the international market, for both humans and animals. The business typically makes linoleum, varnish, and ink with flax oil. Growing consumer demand for better diets, and growing use in industrial applications and animal feed will continue to create a favourable growth environment for the market in the years to come. One of the most well-known natural resources for nutritional advantages is reportedly flax seed. In addition to their nutritional benefits, flax seeds have anti-depressant properties. Moreover, flax seeds are less expensive than chia and quinoa seeds, further boosting sales.
Key Report Findings
Growth Drivers
Increasing Glamour Around Superfoods
The popularity of super ingredients has considerably increased due to recent consumer trends favouring natural and healthy ingredients. These goods contain excellent polyphenols, antioxidants, vitamins, and minerals, giving them superior nutritional value. Regular consumption of flax seeds promotes healthy digestive function because of their high dietary fiber, antioxidants, and protein content.
One of the highest-known plant sources of omega 3 is flax seed. For instance, flax seed naturally contains 40% oil, of which 55% is omega 3 essential oil, which benefits both humans and animals by boosting immunity, stamina, and other physiological functions, including metabolism. Furthermore, during the past few years, the demand in the flax seed market has expanded in emerging nations due to the growing availability of superfoods, such as flax seeds, in supermarkets, conventional grocery stores, and convenience stores.
Escalating Preference for Plant-based Protein
Plant-based protein is gaining traction for several factors. Many consumers are chowing down a range of protein substitutes to lose weight because protein is linked to weight loss capabilities. Weight gain is a key worry for many consumers today. Since plant-based proteins are higher in fiber, and key elements than animal proteins and lower in calories and fat than animal proteins, they appeal more to clients concerned about their health.
With the relatively high danger of contracting allergies or diseases from animal products, consumers are reducing their meat consumption. Since flax seeds are a rich source of plant-based proteins, the demand for flax seeds is predicted to rise over time. Issues like sanitation, cleanliness and moral considerations contribute to the rising demand for plant-based proteins over animal proteins.
Growth Challenges
High R&D Expenses on Quality Seed Development that Raise Seed Price
One of the sectors with the highest R&D spending is the seed sector. Depending on the company's strategy and method of choice, R&D expenditures vary amongst businesses. Contrast this with the flax seed protection sector, where most top companies spend a comparable proportion of sales on R&D. The use of genetically modified seeds is increased among farmers due to irregular weather circumstances and high customer demand for food. The price of the flax seed is increased since it costs more to manufacture GM seeds.
Several businesses have taken the lead in creating GM seeds with particular features (insect resistance, and herbicide tolerance), which enables them to sell their goods at a higher price (seeds). Farmers could use existing seeds from the previous harvest cycle to minimise the overall cost of seeds. Hybrid seeds, and organic seeds of various varieties of fruits, and vegetables such as apples, tomatoes, melons, and grapes also cost more than the average price of seed. The development of the flax seed market may suffer as a result.
Overview of Key Segments
Ground Flax Seed Lead with Richer Oil Content
Ground flax seed accounted for a major portion of global sales, and it is anticipated that it will continue to dominate the flax seed market. One of the main factors propelling the sector over the forecast period is the rising consumption of flax seed as a nutritional supplement. The risk of diabetes, stroke, cancer, and heart disease is decreased by ground flax seed.
Moreover, nutrients like omega 6 and omega 3 fatty acids contribute to improved physiological functionality. Furthermore, flax seed oil reduces cholesterol, gallstones, and constipation, regulates blood pressure, and has diverticular problems, which promotes hair development.
The American Journal of Clinical Nutrition reports that ground flax seeds help lower cholesterol levels, especially in postmenopausal women. Besides a rich source of protein, ground flax seed also includes a sizable amount of each of the nine essential amino acids.
Food Category Rides Plant-based Trend
The food segment became the largest segment. Since flax seed contains various vital amino acids, lipids, and proteins, the demand for flax seed is rising in developed nations. With the growing public knowledge of the health benefits, the US is one of the main users of flax seeds.
In addition, rising flax seed usage in bread goods, breakfast cereals, and energy bars is anticipated to fuel segment expansion during the projection period. Moreover, flax seed flour is being used more frequently by manufacturers of bread goods to improve the products' gastronomic and sensory properties. In turn, this is anticipated to present growth prospects during the projected year.
Worldwide demand for flax seed meal is rising due to its abundance of vital antioxidants, minerals, amino acids, and fatty acids, which contribute to maintaining low salt and cholesterol levels. With its high fiber content, flax seed is becoming more popular among consumers concerned about their weight.
Growth Opportunities Across Regions
Asia Pacific Reflects the Largest Export Potential
Some of the top nations producing flax seeds globally include Kazakhstan, Russia, Canada, China, India, the US, and the UK. The rising consumption of flax seeds due to their health benefits and use in industrial applications. The worldwide flax seed market is incredibly fragmented.
The largest flax seed-producing region in the world is Asia Pacific. The region's main producers and consumers of flax seeds are Kazakhstan, China, India, Australia, and Iraq. According to FAOSTAT, Kazakhstan will have around 1.34 million hectares of harvested land in 2020 or roughly 37% of the entire area. Over the past few years, flax seed's export potential has expanded in response to its rising global demand.
China Remains Among the Leading Consumer Countries
The Asia Pacific area consumes the most flax seed due to the existence of densely populated, developing nations like China, and India. China is among the top consumers of animal feed additives worldwide, accounting for a sizeable portion of the flax seed market. As a result, demand for flax seeds in China is anticipated to rise over the forecast period.
With the rising demand for organic food worldwide, producers in the Asia Pacific region are importing organic flax seeds from Argentina, and the European Union. It is thus anticipated that increased consumption rates and disposable incomes in the Asia Pacific region will drive the flax seed market.
North America Holds the Strongest Foothold, Online Grocery Shopping Instrumental
North America is anticipated to hold the lion's share of the worldwide flax seed market due to the region's extensive product production—particularly in nations like Canada, and the US. According to the Agricultural Marketing Resource Center, Canada is the world's largest producer of flax seed.
The market for flax seeds in North America is anticipated to develop as consumer knowledge of the health advantages of flax seeds rises. Flax seed producers in the region are gaining from the nutrition profile of flax seeds rich in omega 3 fatty acids to a large extent.
Key Industry Players
The two leading companies in the market are Archer Daniels Midland, and Cargill Inc. Besides, several prominent players have also been covered in the report.
Notable Developments
Regional Classification of the Global Flax Seed Market is Described Below:
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.
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