Flaxseed (Linum usitatissimum) contains high quality protein, fat, and dietary fibre to support a healthy lifestyle. On average, flaxseed contains 41% fat, 20% protein, and 28% total dietary fibre. This modest seed is a wealth of nutrition due to its content of three health-promoting components: the omega-3 fatty acid ALA, (20% of dry weight); the plant lignan secoisolariciresinol diglucoside (SDG, 1% of dry weight); and soluble fibre (6% of dry weight). Flax also has a pleasant, nutty taste and along with its unique blend of nutrients, flaxseed is an excellent addition to a healthy diet.
A recent study published by Transparency Market Research on the North American flaxseed market expects the value to reach US $2.3 billion by 2031[1].
The trends inherent in the food sector allow the flaxseed industry to take advantage of market opportunities and to see tremendous growth.
This article provides an overview of the dynamics of the market and the statistics supporting flaxseed usage in global and North American foods and supplements.
Global Market
The functional food (FF) and natural health products (NHP) market share is increasing throughout the world. Globally, 85% of the market is dominated by the U.S., Europe and Japan. These countries are anticipated to remain at the forefront both as producers and consumers due to product awareness, higher income levels and a preference for supplement products, preventive medicine and self-treatment. It is estimated that the Asia Pacific region, particularly China and India, will experience significant growth in the long term, because of increasing awareness, income and wealth.
The global market for FF was estimated at US$222.9 billion in 2018 and is expected to reach US$365.8 billion by 2025, progressing at a compound annual growth rate (CAGR) of 7.4% from 2019 to 2025[2]. The market for bioactive ingredients (i.e., “healthier for you” extracts such as omega 3 fats) is projected to reach about US$2.5 billion by 2020, growing at a CAGR of about 6% from 2019 to 2025.
In 2018, the global dietary supplements market, which includes NHP, was valued at US$128 billion[3]. With a CAGR of 8.5%, the market is expected to reach US$202.6 billion by 2025[4]. The U.S., China, Western Europe, Asia Pacific and Japan represent the majority of the supplement market. Sports, meal, homeopathic and specialty supplement markets continue to expand globally. A 10% growth from 2017 to 2018 was seen in China, marking 10 consecutive years of double-digit increases[5].
The global supplement market is dominated by vitamins (34%) followed by herbs/botanicals (17%). Specialty supplement at 16% of the market include pro- and prebiotics, omega 3 fatty acids, amino acids and antioxidants.
United States
The U.S. FF market was valued at US$65.1 billion in 2018 and is expected to reach US$98.9 billion by 2025, progressing at a CAGR
In 2018, the U.S. supplement sector was valued at US$35.7 billion to US$43.5 billion which represents the largest share of the global market at 31.4%[7]. With a CAGR of 7.1%, the market is expected to reach US$57.5 billion by 2025[8].
Canada
In 2018, Canadian FF market revenues were valued at US$9.62 billion. The sector is expected to reach US$15.52 billion by 2025, growing at an estimated CAGR of 7.5% between 2019 to 2025[9].
Many companies within the food and beverage (F&B) processing industry develop, manufacture and market FF. The F&B sector is the second largest manufacturing industry in Canada in terms of value of production with shipments worth US$85.2 billion in 2016 accounting for 18% of total manufacturing shipments and 2% of Canada’s GDP[10].
The following segments represent the primary areas of FF activity in Canada. These figures include products that have been enhanced with bioactive ingredients including milk and eggs with increased levels of omega-3 fatty acids, yogurts with probiotics and fruit juice
The CAGR of flax-based products is the highest in Canada, surpassing hemp and other plant-based categories.
Table 1: Compound Annual Growth Rate, Canadian Functional Food Products, by product type, 2018 to 2025 (%)
| Total Functional Food Products | 7.5 |
| Dairy Products | 5.7 |
| Bakery & Healthy Snacks | 6.5 |
| Fish & Eggs | 6.9 |
| Soy Products | 7.9 |
| Pulses-based Products | 7.4 |
| Canola-based Products | 8.5 |
| Oat-based Products | 9.1 |
| Barley-based Products | 9.6 |
| Hemp-based Products | 12.0 |
| Flax-based Products | 12.9 |
| Other (berries, fruits, vegetables and derivative products) | 9.9 |
The Canadian NHP market is experiencing steady growth with 2018 sales and revenue valued at US$8.67 billion and estimated to grow to US$14.79 billion by 2025, at an estimated CAGR of 8.7% [13].
The CAGR of omega 3 fatty acids and fibers– all rich in flax – are among the highest growth areas in Canada.
Table 2: Compound Annual Growth Rate, Canadian Natural Health Products, by product type, 2018 to 2025 (%)
| Total Natural Health Products | 8.7 |
| Vitamins (natural source) | 6.3 |
| Herbs and Plant Extracts | 7.1 |
| Probiotics | 7.5 |
| Omega-3 Fatty Acids | 11.9 |
| Minerals (natural sources) | 8.0 |
| Prebiotics | 10.5 |
| Fibres and Carbohydrates | 11.2 |
| Protein and amino acids | 9.1 |
| Carotenoids and other Antioxidants | 13.5 |
Ingredient Trends
Several ingredients are leading the market due to consumer demand which dictates overall FFNHP development and sales. Consistent over the last 5 years, omega-3 fatty acids, fibre, plant-based protein, omega 3 fatty acids and probiotics are viewed by a large number of consumers as healthy[15] which is supporting strong global sales.
- Whole grain and high fibre foods globally will reach US$27.6 billion by 2018 with a CAGR of 6.71%[16].
- Increases in global protein demand will grow to about US$28 billion by 2025[17]. By 2050, plant-based protein will account for 1/3 of the world’s protein market[18]. This areas will be explored further in Part 2 of this series.
- Omega 3 oils are usually sold as supplements, a market estimated to reach US$57 billion by 2024, compared to US$33 billion in 2016. Omega-3 flaxseed oil, which contain alpha-linolenic acid (ALA), and other combination oils are the next largest markets with sales at about US$100 million in 2016[19].
- The global probiotics market was valued at approximately US$40.09 billion in 2017, growing at a CAGR of 7.4% to US$65.87 billion by 2024[20].
Consumer Demographics
Consumer demographics are an important determinant in product development and target marketing. The population is aging which impacts FFNHP needs.
- The number of older persons — those aged 60 years or over — is expected to more than double by 2050 and to more than triple by 2100, rising from 962 million globally in 2017 to 2.1 billion in 2050 and 3.2 billion in 2100. People aged 60 or over are growing faster than all younger age groups[21].
- The growing middle class is predicted to double its share of global consumption, including FFNHP, by 2050. In Asia Pacific, middle class spending is projected to grow from US$4.9 trillion in 2009 to US$32.9 trillion in 2030, or 59% of global middle-class spending[22].
- The millennial generation accounts for 27% of the global population or approximately 2 billion people.[23] Millennials are redefining “healthy” as foods that are natural, organic, locally-sourced or sustainable are typically perceived as the healthier option[24].
- By 2020, Gen Z will be the largest food purchasers, representing 40% of U.S. consumers with $44 billion of purchasing power and influencing $600 billion in spending.[25] Even more than millennials, Gen Z consumers say that clean eating and fresh foods play a key role in their lifestyle. Organic and non-GMO foods are popular among Gen Z.
Flaxseed is increasingly being recognized and valued by all groups of consumers looking for whole, real “clean” foods. And for the increasing number of people who are moving away from animal products – from part-time vegetarians (“flexitarians”) to vegans – flaxseed can provide the essential fatty acids and plant-based proteins required for products targeted at this segment. With the healthy bioactives that flaxseed provides, food companies know that they can count on flaxseed ingredients to help them meet the new trends appearing in the market.
Part 2 of this series will more fully describe ingredient trends supporting the usage of flaxseed in food products.
[1] North America flaxseed market
[2] Grandview Research. Functional Foods: Market Estimates & Trend Analysis. February 2019.
[3] Nutrition Business Journal, 2019
[4] Grandview Research. Dietary Supplements: Market Estimates & Trend Analysis. February 2019.
[5] Nutrition Business Journal, 2019
[6] Grandview Research. Functional Foods: Market Estimates & Trend Analysis. February 2019.
[7] Nutrition Business Journal, 2019.
[8] Grandview Research. Dietary Supplements: Market Estimates & Trend Analysis. February 2019.
[9] Grandview Research. Canadian Functional Foods & Natural Health Products Market Analysis. Feb. 2019.
[10] https://fbc-abc.com/
[11] All data from Grandview Research. Canadian Functional Foods & Natural Health Products Market Analysis. Feb. 2019.
[12] All data from Grandview Research. Canadian Functional Foods & Natural Health Products Market Analysis. Feb. 2019.
[13] Grandview Research. Canadian Functional Foods & Natural Health Products Market Analysis. Feb. 2019.
[14] All data from Grandview Research. Canadian Functional Foods & Natural Health Products Market Analysis. Feb. 2019.
[15] 2018 Food & Health Survey. International Food Information Council.
[16] Whole Grain and High Fiber Foods. Global Industry Analysts. 2017. http://www.strategyr.com/Whole_Grain_And_High_Fiber_Foods_Market_Report.asp#sthash.hz0SEy9v.dpbs
[17] Transparency Market Research, 2017; Markets&Markets, 2017.
[18] Transparency Market Research, 2017
[19] Allied Market Research, 2016.
[20] https://globenewswire.com/news-release/2018/06/21/1527822/0/en/Global-Probiotics-Market-Will-Reach-USD-65-87-Billion-by-2024-Zion-Market-Research.html
[21] http://www.un.org/en/sections/issues-depth/ageing/index.html
[22] https://thefuturescentre.org/trend-cards/140/growing-middle-class
[23] http://www.pewresearch.org/fact-tank/2018/03/01/millennials-overtake-baby-boomers/
[24] https://www.washingtonpost.com/lifestyle/wellness/9-ways-millennials-are-changing-the-way-we-eat/2018/02/20/6bb2fe60-11eb-11e8-8ea1-c1d91fcec3fe_story.html?utm_term=.6274de22d0ad
[25] https://www.forbes.com/sites/jefffromm/2018/01/10/what-you-need-to-know-about-the-financial-impact-of-gen-z-influence/#2eaa727856fc