ORGANIC SESAME SEED MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Organic Sesame Seed Market Drivers

• Increasing health consciousness among consumers: Rising focus on health and wellness is a major factor driving the organic sesame seed market. Consumers are increasingly aware of the benefits of organic and natural foods that are free from chemicals. Studies have shown that organic sesame seeds have higher nutritional value as compared to conventionally grown options. The antioxidants, vitamins, and minerals in these seeds promote health and help prevent More people are switching to organic sesame seeds as part of a healthy diet and lifestyle. This growing shift towards organic, chemical-free foods is propelling the market growth.
• Expanding veganism and vegetarianism: Rising trend of veganism and vegetarianism globally is boosting the demand for plant-based food products including organic sesame seeds. Sesame is an important ingredient in vegan foods due to its nutritional profile. It is used to make dairy-free milks, cheeses, yogurt, and other alternatives. increasing number of people adopting veganism or vegetarianism for ethical and environmental or health reasons is providing an impetus to the organic sesame seed market. Manufacturers are also innovating vegan bakery and confectionery products using organic sesame for enhanced nutrition.
• Rising incidence of chronic diseases: Rising incidence of chronic diseases like obesity, diabetes, heart problems, and others is prompting consumers to switch to healthier foods including organic sesame seeds. Studies have found that sesame helps lower blood pressure, cholesterol, and risk of cancer due to nutrients like magnesium, copper, and vitamin B6. Rising cases of chronic illnesses globally are creating more demand for foods with high nutritional values. This is expected to continue driving the growth of the organic sesame seed market.
• Increasing use in natural cosmetics: Organic sesame seeds are gaining popularity as an ingredient in natural cosmetics and personal care products. They contain antioxidants like sesamol and sesamin along with vitamins E, D, and B, which are beneficial for skin and hair health. More cosmetic manufacturers are using organic sesame oil, protein and extracts to develop chemical-free skincare and haircare products. Rising consumer demand for clean label personal care products is catalyzing the adoption of organic sesame seeds in cosmetics. For instance: According to the data provided by the Agricultural and Processed Food Products Export Development Authority (APEDA) in 2022, the area under organic cultivation of sesame seeds in India rose by almost 25% from 2020 to 2022.

Organic Sesame Seed Market Opportunities

• Distribution expansion in emerging economies: Emerging economies like China, India, Brazil, Mexico, and others offer significant untapped opportunities for organic sesame seeds. With rising incomes, rapid urbanization and greater health awareness, consumers in these markets are willing to pay premium prices for high quality organic food products. Large population base coupled with increasing adoption of organic foods point to strong growth potential. Companies can focus on expanding distribution networks by partnering with local retailers to tap into this demand. Targeted marketing highlighting health benefits can further drive adoption.
• Growing food processing sector: The steady growth of the food processing industry globally presents lucrative prospects for organic sesame seeds. Changing lifestyles and demand for convenience foods is driving innovation in product categories like baked goods, Ready-to-Eat Meals (RTE meals), snacks, and others. Sesame oil and seeds are being increasingly incorporated into processed foods to enhance flavor and nutrition profile. Manufacturers can partner with food processing companies to supply organic sesame as an ingredient. Research and developments (R&D) investments to develop sesame-based food formulations can provide a competitive edge.
• Rising popularity of artisanal bakery: Artisanal bakeries are gaining popularity worldwide for their high quality baked goods made from premium and natural ingredients. The unique taste and texture of sesame seeds make them a favored ingredient in artisanal breads, cookies, bagels, and other items. Bakeries are willing to pay higher prices for sourcing organic and sustainably grown specialty seeds like black/brown sesame. Tapping this segment by building relationships with artisanal bakeries can unlock value for organic sesame producers and suppliers.
• Surging demand for organic packaged foods: Packaged organic foods are witnessing exponential demand from increasingly health-conscious consumers seeking convenience. Sesame seeds are being used to produce ready-to-eat snacks, meal kits, salad toppings, bakery mixes, and others with clean labels. Companies can leverage this trend by supplying organic sesame to packaged food manufacturers. Investments in developing sesame-based organic food formulations and products under own brand names also present an avenue for growth. For instance, according to data provided by the U.N. Food and Agriculture Organization, global trade of organic food products grew by over 10% year-on-year between 2018 to 2020.

Organic Sesame Seed Market Restraints

• High prices: The premium pricing of organic sesame seeds as compared to conventional variants is a major restraint, especially in developing markets. The costs of organic certification and sustainable farming methods contribute to higher prices. Large price-sensitive consumer segments find organic sesame unaffordable. Companies must focus on achieving scale, supply chain optimization, and incorporating technology to help reduce costs and make organic sesame more affordable.
• Counterbalance: Investing in technology for better crop management, quality control, and processing efficiency can reduce costs and improve the quality of the final product.
• Low yields: Organic sesame cultivation generally has lower yield as compared to conventional crops grown by using chemical inputs. Limited availability of organic-certified farmland also leads to reduced output. This can cause supply-demand imbalance and price fluctuations. Investments into R&D on high-yielding organic sesame seed varieties suitable for different climate conditions can help improve productivity to overcome this restraint.
• Counterbalance: Forming alliances with local farmers, cooperatives, or foreign distributors can provide more stable supply chains and open up new markets.
• Strong competition: The organic sesame seeds market faces competition from conventionally grown sesame seeds which are cheaper and more widely available. Low awareness about the benefits of organic sesame in untapped markets gives an edge to normal sesame. Effective marketing and health education are vital to change consumer perceptions. Building unique value propositions in terms of nutrition, taste, and quality can also help organic sesame compete against regular varieties.
• Counterbalance: Focusing on value-added products like cold-pressed sesame oil, sesame snacks, or sesame-based health foods can set a company apart from those selling raw sesame seeds.