Bakery Products Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Bakery Products Market size was estimated at USD 279.9 billion in 2023 and is projected to reach USD 401.4 billion in 2030 at a CAGR of 5.28% during the forecast period 2024-2030.

The global bakery products market is experiencing robust growth, driven by a combination of evolving consumer preferences, innovative product offerings, and expanding market reach through various distribution channels.

One of the primary drivers of this growth is the increasing preference for convenient foods among consumers worldwide. With changing lifestyles and rising urbanization, there is a growing demand for bakery products that offer quick and easy meal solutions. Products like bread, pastries, and biscuits are not only convenient but also appeal to a diverse range of consumer segments, from busy professionals seeking on-the-go options to families looking for nutritious snacks.

Innovation plays a pivotal role in shaping the bakery products market. Manufacturers are continuously innovating to cater to the varied preferences and dietary needs of consumers. For instance, there is a rising trend towards healthier options such as whole wheat, low-calorie, natural, and additive-free bakery products. Consumers are increasingly conscious of their health and are opting for products that align with trends like "natural nutrition," "healthy living," and "organic products." This shift is driving the demand for whole grain, gluten-free, and multigrain bakery items, reflecting a broader trend towards healthier eating habits.

Moreover, recent acquisitions and expansions within the industry underscore the dynamic nature of the bakery market. In February 2022, Dr Schär UK Ltd., a prominent gluten-free manufacturer, acquired Glasgow-based bakery GDR Food Technology Ltd., known as Just: Gluten Free Bakery. This acquisition highlights the growing market opportunities in the gluten-free segment, where companies are capitalizing on increasing consumer demand for specialized bakery products.

The bakery market is also witnessing a surge in fermented, gluten-free, and organic baked goods. These products appeal to health-conscious consumers seeking alternatives that accommodate dietary restrictions or preferences. The popularity of single-serve packaged baked goods is on the rise, driven by the convenience they offer in today's fast-paced lifestyles.

Furthermore, the expansion of online stores and direct-to-consumer channels has revolutionized bakery product distribution. These platforms provide manufacturers with broader reach and direct engagement with consumers, facilitating easier access to a diverse array of bakery offerings.

Sustainability is another critical factor influencing the bakery products market. Consumers and businesses alike are increasingly prioritizing environmentally friendly practices and packaging solutions. Sustainable practices not only resonate with eco-conscious consumers but also contribute to brand reputation and market competitiveness.

the global bakery products market is poised for significant growth driven by consumer preferences for convenience, health-conscious choices, and innovative product developments. As manufacturers continue to innovate and expand their offerings to meet evolving consumer demands, the bakery sector remains dynamic and responsive to changing market trends and lifestyles globally.

Delvens Industry Expert's Standpoint

Experts observe significant trends shaping the global bakery market, driven by increasing health consciousness among consumers. There is a notable shift towards healthier options such as fermented, gluten-free, and organic baked goods, reflecting dietary preferences and rising awareness of nutrition. Convenience remains a key driver, with on-the-go consumption boosting demand for single-serve packaged products, supported by expanding online and direct-to-consumer channels. Sustainable practices, including environmentally friendly packaging, are gaining importance, aligning with consumer and business efforts to address environmental concerns. Technological advancements like Individual Quick Freeze (IQF) technology are enhancing product innovation and extending shelf life, while consumer demand for freshly baked products persists amid perceptions about nutritional benefits. These dynamics underscore a dynamic and evolving bakery market responding to changing consumer lifestyles and preferences worldwide.

Market Portfolio

Key Findings

• On the basis of Product Type, Biscuits and bread dominate the bakery market, driven by their widespread consumption. Cakes and pastries also play a significant role due to their variety of flavours and popularity. The demand for pizza crust is increasing alongside rising pizza consumption. Meanwhile, gluten-free products account for a substantial market share, driven by health consciousness and dietary preferences. There is also growing demand for organic, low-calorie, and sugar-free bakery items as consumers prioritize healthier options. Factors like flavours, texture, and nutritional content continue to shape industry growth, particularly in segments such as breads & rolls, cakes & pastries, and cookies. Overall, the bakery market reflects evolving consumer preferences and health trends, prompting innovation and growth across various product categories.

• On the basis of distribution channel, the bakery products market features diverse distribution channels crucial for global consumer reach. Specialty stores and convenience stores are pivotal, with specialty stores projected to grow fastest, capturing over 35% market share by 2025. Direct sales via company-owned stores and online platforms are rapidly expanding, enhancing brand visibility and customization. Meanwhile, supermarkets, convenience stores, and specialty retailers dominate with over 67% market share, offering extensive accessibility and logistics for a wide range of bakery products. This dynamic distribution landscape reflects the bakery market's adaptability to evolving consumer preferences, fostering growth and innovation worldwide.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Europe is poised to dominate and experience strong growth as a regional market for bakery products. This is driven by robust consumer demand for a variety of baked goods, including staples like gluten-free options, high-fiber products, and those free from trans fats. These categories of baked goods are increasingly popular among European consumers who prioritize health-conscious choices and diverse dietary needs. This trend is propelling innovation and market expansion within the bakery sector across Europe, highlighting its position as a key market for bakery products globally.

Regional Analysis

Europe to Dominate the Market

• Europe accounted for the largest bakery products market share and is predicted to remain the leading segment during the forecast period. The European market growth is supported by more than 150 bakery companies and the growing trend of snacking culture. Due to high consumption of the product in the region, consumers constantly seek healthier alternatives such as bread with whole grain, high-fiber, and omega-3 content.

• In Italy, many consumers buy gluten-free bread to support the health and wellness trend in the country. Also, gluten-free bread is easy to digest and better for health.

• The Asia Pacific market reported a significant growth in the coming years. The region's high growth is supported by increasing adoption of western diets in China, India, and other Southeast Asian countries. The rising number of women working for the population in the region and the growing disposable income support the market growth. Moreover, the growing healthy-living trend in China and Japan boosts the demand for reduced sugar and low-carb bread, cakes, and pastries.

Competitive Landscape

• Nestle SA
• Associated British Foods plc
• Mondelez International Inc.
• Finsbury Food Group Plc
• Bimbo Bakeries USA
• Britannia Industries
• Flowers Foods Inc.
• Rich Products Corporation
• Dr. August Oetker Nahrungsmittel KG
• Gruma, S.A.B. de C.V.
• Bakers Delight Holdings
• Grupo Bimbo S.A.B de C.V.
• Yamazaki Baking Co. Ltd.
• JAB Holding Company
• ARYZTA AG
• General Mills Inc.
• Kellogg Company
• Conagra Brands
• Aryzta
• McKee Foods
• Lantmannen Unibake
• Hostess Brands
• Campbell Soup Company

Recent Developments

• As of July 2023, Starbucks offers just one certified gluten-free bakery item on its menu, the Marshmallow Dream Bar. This item stands out among its beverages, which include several gluten-free options. The Marshmallow Dream Bar is packaged separately with a clear gluten-free certification prominently displayed on the label. This limited selection contrasts with the broader range of gluten-free choices available in Starbucks' beverage lineup.

• In January 2023, Sara Lee, a brand under Bimbo Bakeries USA, launched a new white bread variant enriched with vegetables. This innovative loaf is fortified with vitamins A, D, and E, providing the nutritional equivalent of one cup of vegetables per serving. The introduction of this product underscores Sara Lee's dedication to offering healthier bread options, catering to consumers' increasing demand for nutritious and functional foods.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Bakery Products Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope