Bakery Products Market Size, Share & Trends Analysis Report By Distribution Channel (Specialty Stores, Convenience Stores), By Product (Cakes & Pastries, Breads & Rolls, Cookies, Tortillas, Pretzels), And Segment Forecasts, 2019 - 2025

Report Overview

The global bakery products market size to be valued at USD 251.1 billion by 2025, expanding at a compound annual growth rate (CAGR) of 3.2% during the forecast period. Increasing consumption of ready-to-eat foods across the globe owing to hectic lifestyle is expected to fuel the product demand over the forecast years. Growing preference for ethnic food along with the success of Thai and Mexican food in restaurants has resulted in increased demand for bakery products in Europe.

Major companies are increasing their geographical presence to gain greater market share. The establishment of joint warehouses in the key locations is expected to remain a critical success factor for the companies. The cakes & pastries segment is forecasted to register the fastest CAGR from 2019 to 2025 owing to increased consumption of snack.

Asia Pacific is expected to witness the fastest CAGR over the forecast years due to strong the presence of key companies in emerging countries, such as China, India, Singapore, and Japan. Moreover, rising per-capita income in these countries will contribute to the growth of the regional market. Basic raw materials required for manufacturing bakery products include milk, emulsifiers, fat, stabilizer, flavors, sugar, and flour.

The pricing of bakery products is highly dependent on the prices of these materials as well as their availability. To combat supply-demand imbalances and uncertainty, numerous companies, such as Associated British Foods and Dawn Foods and Bakels, have integrated backward. The bakery product market involves high energy usage and logistics and storage costs as the product have to be transported in specially designed automotive components equipped with state-of-the-art refrigeration capabilities. These factors may restrain the market growth to some extent.

Bakery Products Market Trends

The steadily increasing number of health-conscious consumers, combined with the rising knowledge about the ingredients used in baking, has been a major driver of the market. The benefits offered, such asthe high fiber and gluten-free content of baked goods, are attributed to the growth of this industry.

Rising demand for frozen bakery products such as cakes, pastries, ready-to-eat-muffins, and croissants owing to their long shelf life and convenience has propelled the industry, and this, in turn, further boosts the consumer base. Changing lifestyles along with increased work hours have forced consumers to pivot to convenient frozen foods.

Individual quick-freeze (IQF)technology in bakery products to extend product shelf life is anticipated to build several market growth opportunities. IQF is more efficient than cold freezing because it prevents large ice cubes from forming in the product, which aids in driving market investment. However, the increasing consumer demand for freshly baked products as an alternative to frozen foods due to consumer misconceptions about the deteriorating nutrient content of frozen bakery products is likely to act as industry restraint.

Product Insights

Various factors affecting the industry growth are flavors and fat content along with texture and sweetness. Breads & rolls segment is expected to witness significant growth on account of substantial rise in demand for the products in regions, such as North America and Asia Pacific. The cakes & pastries segment is expected to witness the fastest growth over the forecast period accounting for the largest market share owing to the introduction of novel flavors and rising consumer disposable income levels. Growing population in Asia Pacific will also provide long-term opportunities for industry participants. The cookies product segment is also estimated to have a healthy growth in future on account of the introduction of new flavors, shapes, and textures in the product.

Distribution Channel Insights

Based on distribution channel, the market has been divided into hypermarket & supermarket, convenience store, specialty stores, and others. Specialty stores and convenience stores are the key distribution channels in the global market. Specialty stores is expected to remain dominant, as well as the fastest-growing segment, over the forecast period. It is expected to account for more than 33% of the total market share by 2025.

Specialty stores, such as independent stores, majorly constitute artisanal bakery products. Rising health consciousness has motivated the bakery producers to include functional ingredients, such as legumes, oats, probiotics, fortified margarine, and cereals, in their products. Thus, continuous product development will help boost the industry growth.

Regional Insights

Europe is expected to be the dominant and second fastest-growing regional market on account of high demand for baked products, such as gluten-free, high-fiber, and Trans fat products, which are staple foods. Asia Pacific is anticipated to be the fastest-growing regional market over the forecast years on account of the presence of key companies in emerging countries, such as China, India, Singapore, and Japan.

Developing markets are projected to provide growth opportunities due to rising population and per-capita income levels. Moreover, demand for breakfast grains and cereals, in countries such as China and India, will drive the market further.

Key Companies & Market Share Insights

High entry barriers owing to brand loyalty and huge capital investments are likely to maintain intense competition. Major companies focus on achieving optimum business growth by implementing various growth strategies, such as joint ventures, mergers & acquisitions, strategic partnerships with regional manufacturers, and diversification of distribution channels. Some of the key companies present in the industry are Kraft Food Group, Inc.; Nestle S.A.; Bimbo Bakeries USA; Britannia Industries Ltd.; General Mills; Associated British Foods; and Campbell Soup Company.

Recent Developments

• In June 2023, Entenmann’s unveiled the rebranding of Entenmann’s® Minis to Entenmann’s® Baker’s Delights. Entenmann integrates NaviLens Technology on retail boxes, enabling visually impaired people to find products by name, nutrition, and allergen information.

• In January 2023, Sara Lee® Bread announced the addition of a new white bread made with veggies. This 18-oz loaf offers a delicious taste, one cup of veggies, vitamins A, D, and E, smooth texture, nutrition, and no added colors, flavors, or high fructose corn syrup, making it perfect for lunchboxes or breakfast.

• In July 2022, Britannia launched its latest coffee-flavored cracker, Biscafe, targeting a young audience. With this launch, the firm wants to target new-age caffeine consumers seeking a distinct experience. 

Bakery Products Market Report Scope

Global Bakery Products Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global bakery product market report on the basis of product, distribution channel, and region.

• Product Outlook (Revenue, USD Billion, 2014 - 2025)

  • Bread & Rolls

    • Loaves

    • Baguettes

    • Rolls

    • Burger Buns

    • Sandwich Slices

    • Ciabatta

    • Frozen Bread

    • Others

  • Cakes & Pastries

    • Cupcakes

    • Dessert Cakes

    • Sponge Cakes

    • Pastries

  • Cookies

    • Bar Cookies

    • Molded Cookies

    • Rolled Cookies

    • Drop Cookies

    • Others

  • Tortillas

  • Pretzels

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2014 - 2025)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Specialty Stores

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa