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Bakery Products Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global bakery products market was valued at USD 413.2 billion in 2022 and is projected to expand at a CAGR of 4.7% from 2023 to 2030. The growth of the market is driven by the increasing demand for convenience foods, health consciousness among consumers, rising disposable incomes, and innovations in product offerings. Moreover, the rising demand for organic products is encouraging manufacturers to focus on organic bakery products.
Innovation in product offerings is a key trend in the bakery products market. Manufacturers are continuously introducing new flavors, textures, and shapes of bakery products to attract the attention of consumers. For instance, in March 2021, Bimbo Bakeries USA introduced new Thomas English Muffins flavors such as Caramelized Onion and Monterey Jack Cheese. Furthermore, in November 2021, Hostess Brands, LLC launched new festive-themed cupcakes and mini muffins for the holiday season.
The increasing demand for healthy snacks among health-conscious consumers is driving the market for bakery products. Consumers are increasingly opting for low-calorie and sugar-free products. Manufacturers are introducing sugar-free bakery products to meet the demand of health-conscious consumers. For instance, in November 2021, Los Angeles-based bakery, Madame Chocolat, launched sugar-free cookies and cupcakes.
The growing demand for gluten-free bakery products is also driving the market. The demand for gluten-free bakery products is high among people suffering from celiac disease, and those who are looking to reduce their gluten intake. Moreover, manufacturers are introducing gluten-free bakery products to cater to the increasing demand. For instance, in March 2021, AJ’s Fine Foods launched a range of gluten-free bakery products.
The increasing number of specialized bakery outlets is further driving the market. The presence of these outlets is enabling manufacturers to offer products with unique flavors and textures. Moreover, the rising number of specialty cafes and bakeries is driving the demand for bakery products. For instance, in July 2021, Bakery Nite LLC opened its first bakery outlet in California, offering a wide range of bakery products.
Product Insights
The bread segment accounted for the largest share of the global bakery products market in 2022. Growing health consciousness amongst consumers has led to an increase in the demand for bread products with organic ingredients such as whole wheat, multigrain, and gluten-free bread. According to an article published by The Guardian, in June 2020, wholemeal bread is becoming increasingly popular due to its high fiber content and its ability to regulate digestion. Furthermore, the availability of different types of bread, such as multi-grain, white, and rye bread, has increased due to the growing demand for bakery products.
The cakes and pastries segment is anticipated to expand at the fastest CAGR of 6.6% over the forecast period. Increasing demand for indulgent and premium cakes and pastries is driving the growth of the cakes and pastries segment. According to an article published by the National Bakery Association, in March 2020, cakes and pastries are seen as a special treat and are often associated with celebrations and special occasions. In addition, the increasing number of bakeries and the availability of different types of cakes and pastries are driving the market for bakery products.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest share of the global bakery products market in 2022. This can be attributed to the increasing number of supermarkets and hypermarkets offering a wide variety of bakery products. Furthermore, these stores provide convenience to consumers, enabling them to purchase multiple items in a single visit. Moreover, the rising number of working women and the increasing preference for ready-to-eat food products are propelling the growth of this segment.
The online segment is anticipated to register the highest growth over the forecast period. This can be attributed to the increasing penetration of internet and smartphones in developing countries. Furthermore, growing e-commerce activities, coupled with the convenience of shopping online, are also driving the growth of this segment. In addition, online retail stores offer discounts, promotional offers, and easy return policies, which are further driving the growth of this segment.
Type Insights
The fresh bakery products segment accounted for the largest revenue share of 43.2% in the year 2022. The increasing demand for convenience foods and ready-to-eat products due to the busy lifestyle of consumers is driving the market for fresh bakery products. Also, the growing popularity of artisanal and organic bakery products such as breads and muffins is propelling the market for fresh bakery products. For instance, in May 2022, the European Union launched the “Organic Products Regulation” that allows the use of organic ingredients in bakery products to be labeled as organic.
The frozen bakery products segment is expected to register the highest CAGR of 4.2% over the forecast period. The increasing demand for frozen bakery products due to its longer shelf-life and the availability of different flavors and varieties are fueling the market growth. Furthermore, the presence of major frozen bakery products manufacturers such as La Brea Bakery and Sara Lee Corporation is also driving the market for frozen bakery products. For instance, in June 2022, La Brea Bakery launched a new line of gluten-free frozen bakery products.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 39.0% in 2020. This is mainly due to the presence of a large number of manufacturers in the region and increasing demand for bakery products. For instance, in August 2020, Grupo Bimbo S.A.B. de C.V. acquired East Balt Bakeries LLC, which is a leading manufacturer of frozen bakery products.
Asia Pacific is expected to witness the fastest growth in the coming years. Increasing urbanization and consumer spending on food products are key factors driving the growth of the market. Additionally, major players such as Kraft Heinz Company and Nestlé S.A. are expanding their presence in the region, which is further expected to boost the market growth. For instance, in April 2021, Grupo Bimbo S.A.B. de C.V. announced the expansion of its operations in India by opening a new bakery in Maharashtra.
Financial Projections
In this part of the bakery products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your bakery products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a bakery products business comes from sales of products, as well as catering services, wholesale customers, and online orders. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, food & beverage, the sale of merchandise, and leasing the place for parties and corporate events.
Projecting Expenses
In this section, all the regular expenses related to keeping the bakery products business running will be described. The list of operating expenses includes ingredients and supplies, wages, maintenance and repairs, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the bakery products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In April 2022, Aryzta AG launched a new range of gluten-free bread.
– In September 2022, Bimbo Bakeries USA launched ‘ThinSliced’, a line of artisan-style breads.
– In October 2022, Grupo Bimbo launched ‘DeliRoses’, a line of artisan-style breads made with real rose petals.
Some of the prominent players in the bakery products market include:
– Aryzta AG
– Bimbo Bakeries USA
– Grupo Bimbo
– Panera Bread Company
– Flowers Foods Inc.
– Maple Leaf Foods Inc.
– Kellogg Company
– Aryzta AG
– General Mills Inc.
– Weston Foods
Global Bakery Products Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global bakery products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Cakes & Pastries
– Breads
– Cookies & Biscuits
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Market Outlook for Bakery Products?
[A]: The global bakery products market is projected to grow at a CAGR of 5.3% from 2020 to 2027. The increasing demand for convenient food products and the rising consumption of bakery products are the major factors driving the market. In addition, the increasing demand for healthy bakery products is expected to increase the demand for bakery products in the forecast period.
[Q]: Who are the Major Players in the Bakery Products Market?
[A]: The major players in the bakery products market include Associated British Foods Plc, Mondelez International, Inc., Grupo Bimbo S.A.B. de C.V., Grupo Bimbo S.A.B. de C.V., and United Biscuits Ltd.
[Q]: What are the Major Drivers of the Bakery Products Market?
[A]: The major drivers of the bakery products market are the growing health-conscious population, the increasing demand for convenience food, and the rising disposable income. The increasing demand for gluten-free, vegan, and organic bakery products is expected to drive the bakery products market in the forecast period.
[Q]: What are the Key Segment of the Bakery Products Market?
[A]: The bakery products market is segmented into breads, cakes, pastries, biscuits, and others. The breads segment is expected to dominate the market in terms of revenue during the forecast period. The increasing demand for convenience food is driving the breads segment.
[Q]: What are the Major Regions of the Bakery Products Market?
[A]: The major regions of the bakery products market are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to be the largest regional market in terms of revenue during the forecast period. The increasing demand for healthy bakery products and the rising disposable income are driving the market in North America.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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