Frozen Bakery Market Size, Share & Trends Analysis Report By Product (Bread, Cakes & Pastries, Pizza), By Distribution Channel (Supermarkets & Hypermarkets, Online), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global frozen bakery market was worth USD 42.95 billion in 2022, expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030. The rising popularity of frozen bakery products owing to their properties such as low cost, ease of preparation, and widespread availability are major factors propelling the global market growth. Frozen bakery products are higher in demand than conventional ones owing to their longer shelf life. The ease of thawing and baking increases demand for these products, boosting growth. These products provide quick service while also retaining taste and freshness. Manufacturers have profited by distributing these products to various food establishments such as in-store bakeries, coffee chains, gas stations, and quick-service restaurants. Furthermore, these products are available all year, which is likely to increase demand.

The COVID-19 pandemic negatively impacted the market. Lockdowns and trade restrictions across the globe resulted in inconsistent raw material supply, loss of industrial manpower, and uncertain consumption patterns, affecting overall production. Moreover, a rise in health-conscious people during the pandemic led to the prevalence of healthy and fresh eating which resulted in the decline in demand for frozen foods. The market is expected to reach its pre-covid levels as people return to offices thereby increasing the demand for on-the-go and convenience foods which indirectly promotes the market growth.

Advances in food processing techniques have resulted in the growth of the fast-food industry. The growing number of food joints and restaurants providing convenience and fast food for those who do not have time to cook meals at home is anticipated to drive growth in the frozen bakery market. The growing popularity of on-the-go eating complements the increasing consumption of convenient foods. As people's lives are becoming more hectic, ready-to-eat meals will become even more popular, bolstering the overall industry growth.

Frozen bakery products, such as bread, are being developed in conjunction with technological advancements in the bakery sector, allowing consumers and businesses to access convenient and delicious products. Frozen bakery products do not require advanced facilities or specialized equipment, these products only need a simple oven or proofer. Additionally, bread can be baked only when the supply runs low or when needed. This factor is expected to compel commercial bakery manufacturers to produce par-baked products or frozen dough due to advantages such as lower carbon footprint and reduced waste generation which may promote market growth in coming years.

Traditional baking is being replaced by Bake-Off technologies (BOT) in the industry. Partially baked unfrozen bread, unfermented frozen dough, and partially baked frozen bread, and are the three major BOTs. Another significant product category for the food industry, particularly for the hotel and catering sectors is ready-to-bake and frozen semi-baked products. Fresh-baked bread can also be easily substituted with pre-proofed frozen dough. Furthermore, the market expansion will also be driven by the adoption of Individual Quick Frozen technology (IQF) to preserve fresh frozen bakery goods.

The majority of customers place the highest priority on freshness over price when purchasing bakery products. A sizable portion of people avoids precooked or ready-to-eat foods because they believe that packaged food is unhealthy. The majority of frozen bakery goods constitute high amounts of sugars and fats which are unhealthy for the body. The preparation of many frozen foods often involves the use of trans-fat-containing partially hydrogenated oil. Frequent consumption of such food raises the risk of high blood pressure and heart attacks. Therefore, rising health concerns are anticipated to be a major restraining factor.

Product Insights

In terms of product, the frozen pizza segment held the highest revenue share of 39.7% in 2022. This is due to rising consumption in Western countries such as France, Germany, Mexico, and Spain along with Asia Pacific countries such as Japan, India, and China. Frozen pizza meets the demand for quick and convenient food, particularly among the working population. Additionally, the emergence of specialty pizza products such as dairy and gluten-free is expected to drive growth in the coming years.

Frozen novelties are expected to expand at a CAGR of 4.8% during the forecast period. Frozen novelties include ice pops, shave ice, snow cones, and sorbet among others which are made from vegetable oils or milk solids and are based on flavored water. These are growing in popularity in developed countries, where consumption of such products is relatively higher than in developing countries. The availability of lactose-free ice cream, the development of new flavors, and appealing packaging will present additional opportunities for the expansion of this segment during the projected timeframe.

Distribution Channel Insights

The market is segmented into supermarkets & hypermarkets, online stores, bakery stores, and convenience stores based on the distribution channel. The supermarkets & hypermarkets segment led the market with a share of 41.0% in 2022. Since most customers prefer to properly scan products in person for content, authenticity, and variety before purchasing, this segment dominates the market and this is expected to continue over the forecast period.

The online segment is estimated to grow at a CAGR of 5.1% between 2022 and 2030. The popularity of the online distribution channel is growing among consumers owing to the increasing internet connectivity and growing penetration of smartphones, as well as the convenience that e-commerce platforms offer. According to the International Telecommunication Union, 63% of the total global population is using the internet which is 17% higher than the 2019 figures. Therefore, rising internet users, ease of shopping from home, and attractive offers & discounts offered online are the major factors influencing the segment growth.

Regional Insights

The Asia Pacific region is expected to grow the fastest with a CAGR of 4.8% during the forecast period of 2022-2030, owing to factors such as the sedentary lifestyle, developing economies, and rising disposable income. The growing female working population has altered traditional household dynamics, resulting in a noticeable increase in preference for convenience and ready-to-eat food. For instance, in India, major urban cities with a high proportion of working women aided market growth. These factors are anticipated to boost product demand in the coming years.

North America led the market with a revenue share of over 38.8% in 2022. Frozen bakery products have a much higher shelf life than traditional products, which has increased consumer interest in such products in the region. Market players are focusing on providing products with healthy and organic ingredients and minimal artificial preservatives in response to rising consumer demand for organic and healthy products. Furthermore, the region's growing preference for high-quality, convenience food is a significant factor driving demand for frozen bakery products.

In 2022, Europe had the second-highest revenue share in the market Catering and tourism industry expansion in European countries such as Germany, Italy, and the U.K. is expected to provide substantial growth opportunities in the coming years. Consumers prefer convenient and ready-to-eat products for their breakfast menu, which has boosted product demand. Furthermore, the provision of gluten-free baked goods for health-conscious consumers has further aided growth in the region.

Key Companies & Market Share Insights

The global market is highly competitive owing to the presence of a large number of regional and international companies in the industry. Major players focus on product innovation and development to meet changing consumer preferences by offering high product quality with fewer artificial additives and variety in tastes. The key players operating in the global market include; Cargill Corporation, Kellogg Company; Custom Foods, Inc.; Conagra Brands Inc.; Vandemoortele N.V.; Associated British Foods plc; Bridgford Foods Corporation; Europastry; Cole’s Quality Foods Inc.; Flowers Foods, and General Mills, Inc. among others.

• In February 2022, Griddle, a frozen bakery products company, launched frozen vegan toaster waffles in their easy-baking product portfolio. The new waffles have 40% lesser sugar content than regular waffles, are made from natural ingredients, and are HFSS compliant. The new frozen vegan waffles are launched in three variants namely chocolate chip, original, and blueberry.

• In March 2022, Wonder Bakery, an industrial-grade bakery company, announced plans to build a 62,000-square-foot production and distribution facility in Dubai industrial city for USD 14 million. The facility has a production capacity of  50,000 tons of frozen and fresh bakery products as well as cold and hot kitchen products per year.

• In July 2021, Dawn Food Products Inc. acquired Icopa, a leading bakery product distributor in Portugal. The acquisition is intended to strengthen distribution channels and maintain the company's supply chain. The company also intends to expand its business because it can provide its products to a large consumer base in a short period.

Some prominent companies in the global frozen bakery market include:

• Kellogg Co.

• Cargill, Incorporated

• Conagra Brands, Inc.

• Custom Foods Inc.

• Vandemoortele NV

• Bridgford Foods Corporation

• Associated British Foods plc

• General Mills Inc.

• Europastry

• Cole’s Quality Foods, Inc.

• Flowers Foods

Frozen Bakery Market Report Scope

Global Frozen Bakery Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global frozen bakery market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Bread

  • Cakes & Pastries

  • Doughnuts & Pies

  • Pizza

  • Novelties

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Supermarket & Hypermarket

  • Convenience Stores

  • Bakery Stores

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Spain

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE