North America Cakes Market Size (2024-2030)

North America's Cakes Market was valued at USD 14.52 billion in 2023 and is projected to reach a market size of USD 19.63 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.40%.

Cake is one of the most popular foods in the world, containing flour, sugar, eggs, sugar and antibiotics. Cake originated hundreds of years ago and has evolved from a simple bread-like form into many flavors today. They became a symbol of celebration and celebration during the Renaissance. Now the cake market is booming with many flavors and styles. In addition to classics like chocolate and vanilla, the chefs also have new creations like matcha and salted caramel. From desserts to sumptuous cheesecakes to vegetarians, there's a cake to suit every taste. The online platform makes it easy for people to buy custom cakes to suit different diets. Despite constant changes, the joy of enjoying cake, whether for a special occasion or a simple indulgence, is still universal.

Key Market Insights:

The North American cake market presents a dynamic landscape due to changing consumer preferences, culinary trends, and markets. Business analysis uncovers a lot of important information that keeps the market moving forward.

First, the increasing demand for luxury desserts is driven by consumers' increasing demand for better ingredients, unique flavors, and sophisticated presentations. Artisanal bakeries and boutique pastries are capitalizing on this trend, offering desserts handmade with quality ingredients and well-designed designs to customers willing to pay a price to enjoy them. Additionally, consumers are becoming increasingly health-conscious, increasing the demand for higher-quality desserts such as gluten-free, sugar-free, and organic varieties. So, to meet this demand, bakers have innovated by using other ingredients and labeling their products with health properties. Additionally, convenience plays a key role in the market as consumers look for ready-to-eat and grab-and-go cake options that fit their lifestyles. This has led to expansion in the prepackaged and frozen division, providing convenience without compromising on taste and quality. In addition, the impact of digital channels and social media cannot be ignored because they play an important role in creating customer preferences, increasing brand awareness, and selling directly to customers. In summary, the North American cake industry continues to evolve with changes in consumer behavior and market conditions, providing innovation and growth opportunities for entrepreneurs willing to adapt and accommodate the changing nature of business.

North America Cakes Market Drivers:

The Changing Consumer Preferences drive the market forward.

Consumers are increasingly looking for the best desserts made with quality ingredients and unique flavors. This preference change is increasing the demand for specialty cakes offered by chefs and caterers.

The health benefits of taking Cakes accelerate the market growth.

As health awareness continues to increase, the demand for healthy cakes such as gluten-free, sugar-free, and organic cakes also increases. Bakeries have innovated to meet demand by offering healthier options without sacrificing taste and quality.

Digital Influence plays a vital role in driving the market forward.

Digital channels and social media play an important role in generating consumer interest and increasing brand awareness. Bakeries use these platforms to showcase their products, engage with customers, and promote direct sales to customers, thereby expanding their business reach.

Cakes Market Restraints and Challenges:

Competition from Healthy Alternatives will be a restraint in the Market Growth.

The popularity of better desserts, such as fruit desserts or desserts made with other sweets, is a challenge for the cake industry. Consumers who want to enjoy delicious meals while maintaining a healthy lifestyle can choose these options instead of cakes.

Maintaining quality and Standardization provides a challenge to market growth.

Maintaining consistency in quality and standardization of Cakes can be difficult due to differences between material and processing. Ensure batch-to-batch consistency and compatibility requirements, especially for companies sourcing from multiple suppliers or regions.

Sustainability and Environmental Impact restrains market growth.

The increasing demand for Cakes has led to concerns about their sustainability and environmental impact. Maintaining sustainable practices and supporting local communities are key challenges facing the Cakes industry.

Dietary Restrictions and Preferences will restrain the Market Growth.

Accommodating different dietary preferences and restrictions, including gluten-free, dairy-free, and vegan diets, can be challenging for bakers. Ensuring cakes meet various nutritional needs while maintaining flavor and quality requires additional resources and expertise.

Cakes Market Opportunities:

As consumer preferences and culinary trends continue to evolve, the North American Cakes industry has many opportunities for growth and innovation. First, there is a growing demand for high-quality food products due to consumers' interest in quality ingredients, product variety, and design. Artisanal bakeries and specialty bakeries have the opportunity to capitalize on this trend by offering cakes made with quality ingredients and making it clear that customers are willing to pay the price. Additionally, the growing importance of health and wellness provides opportunities for innovation and expansion of their products to include healthy cake desserts. Gluten-free, sugar-free, and sugar-free cakes are growing in popularity among health consumers, offering cake products the opportunity to enter niche markets and differentiate themselves from competitors. Additionally, convenience plays a key role in driving the market, with consumers seeking convenient cake options and in-store convenience due to their busy lifestyles. Bakers can capitalize on this trend by expanding their product line to include individual cakes and pre-packaged cakes to meet the demand for convenience without affecting taste or quality. Additionally, the influence of digital channels and social media offers opportunities to improve their online presence, engage with customers, and increase sales through e-commerce platforms. By using digital marketing strategies and leveraging the power of social media, bakers can increase product awareness, reach new products to consumers, and build trust in the competitive market. Overall, the North American cake industry is growing, providing businesses with opportunities to adapt, innovate, and meet consumers' changing needs and preferences while maintaining the latest trends and technology.

NORTH AMERICA CAKES MARKET REPORT COVERAGE:

North America Cakes Market Segmentation:

North America Cakes Market Segmentation by Product Type:

• Dessert Cakes
• Sponge Cakes
• Cupcakes
• Others

In 2023, based on Product Type, Dessert Cakes account for more than 50% share of the North American Market. Cakes, are also popular for celebrations and special occasions, making them one of the most popular desserts after all dessert in restaurants and parties. Moreover, the cake can be customized according to personal preferences. This includes choosing from a variety of flavors, fillings, and toppings and adapting to food preferences, which contributes to their market dominance and growth.

North America Cakes Market Segmentation by Distribution Channel:

• Retail
• Foodservice

In 2023, based on the Distribution Channel, Retail accounts for more than 80% share of the North American Market. Consumers are increasingly looking for unique and high-quality desserts, from handmade and specialty desserts to cakes that meet dietary requirements, such as gluten-free, vegan, or low-sugar options. The demand for variety and customization has led to the expansion of retail outlets as they provide consumers with easy access to a variety of cake options in one place. Therefore, export markets will continue to be the main source of sales in the market throughout the forecast period.

North America Cakes Market Segmentation: Country Analysis:

• USA
• Canada
• Mexico

In 2023, based on Country, USA accounts for the largest market share of more than 60%. The United States, North America's largest market, is a diverse environment for cakes influenced by a mix of cultures and culinary practices. In urban areas, there is a demand for quality sweets with unique flavors and innovative designs to meet affluent consumers who are ready to pay high prices for quality. Traditional flavors like chocolate and vanilla are still popular, but there's also interest in exotic flavors and other health benefits. The market is highly competitive; grocery stores, specialty stores, and online cake shops are all competing for customers.

Canada stands next in the queue followed by Mexico.

COVID-19 Impact Analysis on the North American Cakes Market:

The COVID-19 pandemic has had a significant impact on the North American cake industry, causing disruptions in production, distribution, and consumer behavior. As the government implemented lockdown and social distancing measures to prevent the spread of the virus, many food and bakeries were forced to temporarily close or reduce capacity, leading to reduced sales and loss of income. The cancellation or postponement of weddings, birthdays, and other events has further impacted cake celebrations, which have always been an important part of the business. In addition, changes in consumer behavior, including reduced spending and changes in home cooking and baking, have also impacted candy purchasing patterns. Although there was a temporary surge at candy stores as consumers stocked up on food during the shutdown, sales of specialty items and cakes fell as dine-in was closed at restaurants and cafes that usually sell the items. In addition, product disruptions, including shortages of key ingredients and packaging materials, have created challenges for bakers, causing production delays and rising prices. Despite these challenges, the pandemic has spurred innovation and change in the industry by introducing more grocery, delivery, and in-store options versus online sales and introducing new products to meet customer needs. Looking ahead, the North American cake industry is expected to slowly recover as anti-aging drugs advance and consumer confidence returns; however, the long-term spread of the disease is still unknown.

Latest Trends/ Developments:

The North American Cake market has seen some significant trends and developments that are shaping the market landscape. First, there is a growing demand for high-quality food products due to consumers' interest in quality ingredients, unique foods, and attractive designs. Artisanal bakeries and specialty cakes have capitalized on this trend, offering handmade dessert cakes with beautiful equipment, the finest ingredients, and personal touches, allowing customers to enjoy finding delicious treats.

Another significant trend is the emphasis on health and wellness, leading to the rise of healthier cake options. The rise of gluten-free, sugar-free, and vegan cakes among healthy consumers has encouraged bakers to innovate and expand their products to include other ingredients and other health benefits without sacrificing taste or quality.

In addition, there is a growing interest in exotic and international flavors that reflect the diverse cultural influences found in North America. Bakeries are experimenting with different combinations and taking inspiration from foods around the world to create new and exciting cakes that will delight playful palates.

Key Players:

1. Pepperidge Farm (Campbell Soup Company)
2. Bimbo Bakeries USA (Grupo Bimbo)
3. Hostess Brands, Inc.
4. McKee Foods
5. Bake’n Joy Foods, Inc.
6. General Mills
7. Bonn Group
8. Sara Lee Frozen Bakery
9. Dessert Holdings
10. The Cheesecake Factory Bakery

• In November 2023, Bimbo Bakeries USA, a subsidiary of Grupo Bimbo, launched its first Entenman cake. They're made with "real ingredients" and contain no artificial colors or fructose, making them a great snack for breakfast, midday, or evening.

• In March 2023, McKee Foods began selling Little Debbie Cakes & Creme Brownies in commercial vending machines. This new product is a combination of two favorite American classics: brownies and cakes. Each delicious chocolate brownie is topped with white icing and sprinkled with chocolate chip cookie crumbs, providing customers with a delightful blend of rich flavors and satisfying crunch.

• In February 2023, Hostess Brands announced the launch of its latest innovation called Hostess Kazbars, a unique dessert that inspires a new trend in the snacking world. The new Hostess innovation offers soft cake, buttercream frosting, sweet cakes, and melted caramel or soft chocolate coating. The bar is covered in a layer of rich chocolate flavor and a delicious drizzle. Kazbars come in two varieties: Chocolate Caramel and Triple Chocolate.