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The cakes and pastries market size is estimated to grow at a CAGR of 3.42% between 2022 and 2027. The cakes and pastries market size is forecast to increase by USD 22.4 billion. The growth of the market depends on several factors, including the growing millennial population more inclined toward convenience foods, growing demand for artisan-baked products, and increasing demand for ready-to-eat (RTE) products.
This cakes and pastries market report extensively covers market segmentation by type (cakes and pastries), sector (food service and retail), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The inclination of the growing millennial population towards convenience foods is notably driving the market growth, although increasing obesity among consumers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The inclination of the growing millennial population towards convenience foods is notably driving the cakes and pastries market growth. Consumers now want wholesome, personalized, and natural products without compromising health, taste, or ingredients. Manufacturers and retailers have high expectations for the quality, taste, and appearance of their food while also having to reach increasingly time-pressed consumers. Millennials and Generation Z are driving demand for quality baked goods due to their interest in groceries. Millennials want transparency and clean, simple ingredient labeling, and they want to support companies that reflect their unique values. Therefore, the global market is expected to witness significant growth during the forecast period as the demand for savory and healthy baked goods such as cakes, pastries, and sweet tarts rises.
The rising demand for sugar-free bakery products is a key trend influencing the cakes and pastries market growth. The increasing prevalence of diabetes in the world has increased the demand for sugar-free baked goods. As baked goods and confectioneries have become readily available on the street, the need for convenient meals has increased, and a variety of foods are being consumed. In addition, growing consumer interest in different flavors coupled with rising consumption of homemade baked goods and heightened health and fitness concerns will also provide growth opportunities for the global cakes and pastries market throughout the year.
The increasing obesity among consumers is challenging the cakes and pastries market growth. Obesity is one of the most serious global health problems of the 21st century, affecting countries around the world. Adult obesity is a major risk factor for ill health and premature death, including various cardiovascular diseases (CVD), some common cancers, diabetes, and osteoarthritis. Obesity and overweight continue to increase among children and adults. For example, according to the World Obesity Federation's World Obesity Atlas 2022, over 1 billion people worldwide, including 1 in 5 women and 1 in 7 men, will be obese by the year 2030. Amid rising consumer health concerns, the global cakes and pastries market is likely to be negatively impacted during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cakes and Pastries Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Baking Co: The company offers different variety of cakes, cupcakes, cheesecakes, pies, and bars. Some varieties of cakes and cheesecakes include vanilla cakes, lemon cakes, chocolate cakes, red velvet cakes, oreo cheesecakes, snickers cheesecakes, and apple and walnut cheesecakes.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the cakes segment will be significant during the forecast period. Demand for cakes is determined by several factors. First, cakes are popular for celebrations such as birthdays, weddings, and anniversaries. It is also popular as a dessert or sweet snack. As a result, cake demand remains relatively constant throughout the year, although it can peak during the holiday season. A key trend in the global cakes and pastries market is the increasing demand for healthier and more natural ingredients. Consumers are becoming more health conscious and demand products made with natural ingredients and free of harmful additives. As a result, many cake makers today use less sugar, fat and natural ingredients in their products.
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The cakes segment was valued at USD 71.45 billion in 2017 and continued to grow until 2021. Another trend in the market is the growing popularity of novelty cakes. These cakes are designed to look like famous characters, animals, or other objects and are often used for children's parties and other events. The original cakes add a fun element to the celebration. It's a great addition and can be adapted to any theme or occasion. In terms of distribution, cakes are sold through various channels such as supermarkets, bakeries, and online retailers. Some manufacturers also sell directly to consumers through their own stores or online platform. Therefore, the factors mentioned above are expected to drive the growth of the cake segment in the global cakes and pastries market during the forecast period.
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Europe is estimated to contribute 41% to the growth of the global cakes and pastries market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Along with Europe, the United States, Mexico, and Canada are among the most important markets for cakes and pastries in North America. The market dominates the food industry due to innovation, packaging, new flavors, new technology, and consumer health consciousness. Health awareness and poverty are two parallel trends dominating the US market. Moreover, the availability of flavors such as buttercream, chocolate, and peanut butter is expected to increase in the region during the forecast period. Consumers are increasingly turning to a healthier lifestyle. As a result, cake and pastry recipes are placing greater demands on healthy, natural ingredients such as naturally occurring sugars, nuts, whole grains, fruits, and seeds. Therefore, such factors are expected to drive the growth of the cakes and pastries market during the forecast period.
The COVID-19 pandemic negatively impacted vendor revenues in the cake and pastry market in Q1 2020. Governments in different countries have implemented restrictions such as nationwide lockdowns and home bans related to COVID-19. The closure of all or part of brick-and-mortar retail facilities such as supermarkets, hypermarkets, and convenience stores has reduced demand and sales of cakes and pastries. In addition, shortages of labor and raw materials created problems in the supply chain. The closure adversely affected manufacturing and distribution operations. However, with retail stores reopening in 2021, so has the demand and sales of cakes and pastries. Consumers are more concerned about their health than ever before. Sales of cakes and pastries through online channels have increased due to the pandemic. Therefore, such factors are expected to drive the growth of the cakes and pastries market during the forecast period.
The cakes and pastries market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio classifies the global cakes and pastries market as part of the global packaged foods and meats market, under the global food segment of the global food, beverage and tobacco market. The global packaged foods and meats market includes food processing manufacturers or suppliers involved in food processing to eliminate microorganisms and extend shelf life. Technavio calculates the global packaged foods and meats market size based on the total revenue of the vendors operating in the market. The market does not include manufacturers of food processing equipment. Manufacturers of packaged alcoholic and non-alcoholic beverages, including bottled water, have also been removed from the market.
Cakes And Pastries Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.42% |
Market growth 2023-2027 |
USD 22.4 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.05 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 41% |
Key countries |
US, China, Germany, Russia, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Baking Co., Aryzta AG, Barilla G. e R. Fratelli Spa, Bonn Nutrients Pvt. Ltd., BreadTalk Group Pte Ltd., Campbell Soup Co., Corporativo Bimbo SA de CV, Dofreeze LLC, Edwards Cake and Candy Supplies LLC, EUROPASTRY SA, Flowers Foods Inc., Hostess Brands Inc., McKee Foods, Monginis Foods Pvt. Ltd., Rubicon Bakers LLC, The Essentials Baking Co., The Wadia Group, Tyson Foods Inc., WPP Plc, and Yamazaki Baking Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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