Bakery Products Market Size (2023-2030)

The Global Bakery Products Market was estimated to be worth USD 371.15 Billion in 2022 and is anticipated to reach a value of USD 555.92 Billion by 2030, growing at a fast CAGR of 5.18% during the forecast period 2023-2030.

Bakery Products are prepared by dry heating the products in the oven. These include breads, cakes and pastries, cookies, pies, muffins, pizzas, pretzels, and others. Although flour, egg, and milk are the main ingredients in baked products, the use of organic ingredients for baking is witnessing an increase as people shift towards healthy eating habits. Further, sweeteners and essence are added to make the products delicious. Additionally, the growing health concern has given a boost towards vegan and organic baked products such as gluten-free cookies, packaged cakes, and chemical-free pastries that use plant-based extracts such as thyme, rosemary, lemongrass, and others. Furthermore, to prevent diabetes, heart disease and blood pressure-related risks, consumers have shifted their preferences towards whole-grain or multigrain bakery products.

Apart from this, there is a growing trend towards hybrid baked products that includes cruffin (a mixture of muffin and croissant) and Macaringue (a mixture of macaroon and meringue) have attracted consumers with unexpected flavours. Furthermore, technologically-enabled trends in bakeries such as bakery automation have increased the productivity and profitability of companies.

Global Bakery Products Market Drivers:

A shift in demand towards convenience and ready-to-eat foods has boosted the demand for bakery products in the market.

Recently, there has been a rise in the demand for convenience foods due to fast-paced lifestyles and long working hours. Therefore, consumers prefer ready-to-eat food items that include cakes, pastries, bread, packaged baked foods, pretzels, and others. This has also boosted the demand for frozen baked products that provide a longer shelf-life. Furthermore, increasing income has shifted consumers’ interests towards buying luxurious baked products such as pizzas and tortillas. Additionally, youngsters are the prime contributors towards demanding pastries, cakes, and pizzas. Further, the rise in demand for convenience foods has also made consumers health-conscious due to growing health problems such as obesity and diabetes. Therefore, vegan baked products are highly demanded by consumers such as plant-based pizzas, organic breads, plant-based pastries made with soy milk, and others. Hence, all the above factors have driven the growth of bakery products in the market.

An increase in the working women population has boosted the demand for bakery products in the market.

Women have been actively engaging in the workforce which has drastically changed their roles in recent times. The traditional roles of cooking food and taking care of the family are gradually replacing and hence families with working women prefer bakery products as it requires less time for preparation, fewer leftovers, and easy cleaning up for them. Bakery products such as garlic bread, whole-grain bread, and pastries are on the rise. Moreover, the demand for frozen baked products is also on the rise because of the longer shelf life that it provides. Since most of the frozen baked products are less nutritious due to added preservatives, there has been an increase in demand for nutrients-based baked foods such as whole-wheat cookies, sugar-free pastries, bread with herbs as the main ingredient, vegetable-based pizzas, and others. Hence, all these factors have driven the growth of bakery products in the market.

Global Bakery Products Market Challenges:

Bakery products are prone to shelf-life management problems. Usually, preservatives are added to increase the shelf-life of the product but growing consumer awareness about preservatives and their impact on health can hinder the growth of bakery products. Maintaining taste, quality, and freshness is the biggest challenge for bakery products, especially bread that is perishable. Furthermore, as consumers are becoming nutrition-conscious, they are looking for baked products that provide higher nutritional value. Hence, it has become a problem for bakery companies to produce these products as it requires the right resources such as equipment, processes, and ingredients. This is further increasing the cost of companies. Henceforth, these market restraints must be eliminated to decline the challenges of the Global Bakery Products Market.

Global Bakery Products Market Opportunities:

The Global Bakery Products Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, and agreements during the forecasted period. Furthermore, owing to the increase in demand for nutritious, quality enriched, as well as delicious baked foods can earn a good profit for the business and enhance its future growth opportunities.

COVID-19 Impact on Global Bakery Products Market:

The pandemic has disrupted the entire supply chain and hence affected the food industry. As a result of the global lockdown, retail outlets, stores, hypermarkets, and supermarkets witnessed a decline in sales of bakery products. On the other hand, the unorganized or household sector witnessed an increase in sales of homemade bakery products supplied by home bakers. Furthermore, demand for packaged baked products such as breads, muffins and cakes increased as they provide long shelf life which reduced the stress of piling up food every month or food shortage. Additionally, the pandemic increased health awareness among people which boosted the demand for healthy and organic bakery products.

Global Bakery Products Market Recent Developments:

• In January 2023, Mondelez India launched Cadbury Chocobakes choco-chip Cookies. It is the company’s latest launch and will strengthen its presence in the biscuit segment of the market.
• In October 2022, Grupo Bimbo, a leading Mexican company in the bakery industry acquired St Pierre Groupe, which is a UK-based baking company that produces premium brioche-style products. The acquisition expanded Grupo Bimbo’s market in Europe and helped to increase its revenue.

BAKERY PRODUCTS MARKET REPORT COVERAGE:

Global Bakery Products Market Segmentation:

Global Bakery Products Market Segmentation: By Product

• Bread
• Biscuits and Cookies
• Cakes and Pastries
• Pizzas, tortillas, and Puffs.
• Others

Based on market segmentation by product, bread occupies the largest share of the bakery products market. Bread is the most demanded product by consumers as it blends with any type of food, requires less preparation, offers high nutritional value, and is affordable. Even during the pandemic, the sale of bread did not witness a decline and was equally demanded by consumers as before. Further, growing health awareness has increased the demand for whole-grain and multigrain bread due to the nutritional value it offers.

The second position by product, is occupied by biscuits and cookies. The demand for biscuits and cookies is due to their affordability and on-the-go-food feature, as they come in packages and requires no preparation, which provides healthier options for people working long hours.  Moreover, there is a rise in demand for oats, whole-grain biscuits, and gluten-free cookies among fitness-oriented people.

The third position by product, is occupied by Cakes and Pastries. Cakes and pastries are highly demanded during special occasions and festivals. Also, during, festivals people exchange pastries and cakes with each other rather than sweets. Additionally, chocolate chip cookies are popular among teenagers. Furthermore, there is a rise in demand for vegan pastries which mostly consist of plant-based milk, vegetable extracts, fruits, and plant-based butter.

Global Bakery Products Market Segmentation: By Form

• Frozen
• Fresh

Based on market segmentation by form, frozen bakery products occupy the highest market share. Frozen baked products such as bread, bagels, rolls, packaged cakes and biscuits offer long-shelf life and less preparation time and hence, they are highly demanded by the working population. Further, as people have turned towards healthy snacking options, demand for organic bakery products is on the rise, which includes gluten-free bread, banana cookies, multigrain bagels, and others.

Global Bakery Products Market Segmentation: By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Platforms
• Others

Based on market segmentation by distribution channel, supermarkets and hypermarkets hold the highest market share. Supermarkets and hypermarkets witnessed an increasing demand for bakery products due to the accessibility, affordability, quality and transparency of products. Further, supermarkets keep baked products fresh which helps to increase the shelf life of bakery products, particularly cakes and pastries. Additionally, consumers prefer to go to supermarkets because of their proximity to their residential area, hence availing easy accessibility.

The second position by distribution channel, is occupied by online platforms. Online platforms witnessed an increase in the sale of bakery products particularly during the pandemic. Online platforms offer 24*7 availability of products, prices and ingredients comparisons with other bakery products. An increasing trend in the bakery industry is the presence of physical bakeries on online platforms that provide customizing options for bakery products related to ingredients and toppings to customers.

Global Bakery Products Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

Based on market segmentation by region, Europe holds the highest share of the market. Europe is home to some of the popular bakery companies which is one of the reasons for demand for bakery products. Apart from this, consumers in Europe prefer instant, nutrient-rich, less calorie and sugar-free foods which have boosted the growth of healthy bakery products in the region. Moreover, biscuits, cookies, and bread are in high demand among consumers. Cakes, pastries and doughnuts have witnessed a rise in demand due to the presence of flavoured ingredients and innovations in baking. Germany is the leader in the bakery industry followed by France and the United Kingdom.

The second position by region, is occupied by North America. The region is popular for its varied flavour cakes, pastries, cupcakes and breads which has increased the demand for bakery products in the region. Further, convenience stores are the prime spots for consumers to purchase bakery products and during the pandemic in the absence of these stores, the online demand for bakery products witnessed an increase in the region particularly, whole-grain bread, and non-frozen pastries. Further, Mondelez International which is one of the largest confectionary, food and beverage companies is catering to increasing consumer demands in the region. The United States, followed by Mexico hold a large market share in the region.

During the forecast period, Asia Pacific is predicted to grow in the bakery industry. The influence of Western diets, mergers and acquisitions of Western companies in the region, and continuous innovation in the taste of the products are likely to fuel the growth of bakery products in the region. Additionally, innovative trends in cake and pastries such as a mixture of spice and sour flavours are likely to increase the revenue of companies in the region. Moreover, countries such as India and China are the market leaders in the region.

Global Bakery Products Market Key Players:

1. Nestle
2. Mondelez International
3. Kraft Heinz Company
4. Kellogs
5. Conagra
6. Britannia Industries
7. Warburtons
8. Flower Foods
9. General Mills
10. Associated British Foods plc