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The Global Bakery Products Market size is projected to increase by USD 234.68 billion, at a CAGR of 6.91% between 2023 and 2028. The bakery products market in the Asia-Pacific (APAC) region is poised for rapid growth, with major markets including China, Japan, India, and Australia. Britannia Industries plays a significant role in this market, and expansion efforts by global players contribute to its momentum through both organic and inorganic developments. Grupo Bimbo, operating in Asia since 2006, focuses on tailoring its distribution network to local markets, introducing region-specific products like rolls with sweet beans and spicy meat-filled bread. Aryzta AG, a key player, offers bakery products aligned with consumer trends, emphasizing freshness, health, artisanal quality, and ethical sourcing. This market is anticipated to witness substantial growth, driven by factors like convenience, evolving consumer trends, and global expansion initiatives.
The market shows an accelerated CAGR during the forecast period.
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The market share growth by the offline segment will be significant during the forecast period. Supermarkets and hypermarkets have emerged as the most popular distribution channels for bakery products such as bread, cookies, cakes, and others. The increase in the number of supermarkets and hypermarkets is attributable to the growth of the organized retail sector in developed and developing economies. The growing retail industry and the establishment of numerous retail outlets are driving sales in this segment.
The offline segment was the largest and was valued at USD 385.36 billion in 2018
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Further, the number of convenience stores in the UK and Japan, among other countries, is increasing. Rising urbanization and the consequent changes in lifestyles, with consumers looking for more on-the-go options and shorter queueing times at shop counters, are increasing the demand for retail formats such as convenience stores. Thus, the overall sales of items like bread through convenience stores are increasing at a significant rate. Independent retailers, including those in the US cookies market, are private owners who have built their retail stores by assessing the needs of the business, which include staffing, marketing, merchandising, and sales. With the increasing number of independent retailers worldwide, the sales of items like cookies through this channel are expected to increase, thereby fueling the growth of the offline segment in the US cookies market during the forecast period.
APAC is estimated to contribute 35% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. The market in the Asia-Pacific (APAC) region is experiencing significant growth driven by the rising consumer demand for clean-label foods. In Australia, where over 355,000 people were diagnosed with celiac disease by 2020, the demand for gluten-free bakery products is particularly high. Leading companies, including 4ME GLUTEN FREE, Ardor Food Co, GF PRECINCT, Gluten Free 4 U, and HEAVENS BAKEHOUSE, are expanding their product offerings to meet this demand. Associated British Foods' brand, Abbotts Village Bakery has become a dominant player in the gluten-free segment, capturing a 30% market share. As awareness of gluten-free diets grows, the market in APAC is expected to witness a rapid growth rate during the forecast period.
In the global market, driven by consumer preferences and urbanization, modern life and health-conscious individuals fuel demand for hypoallergenic, gluten-free, and chemical-free baking products, amidst intense competition and cost fluctuations, particularly among the ex-pat population with changing lifestyles. This demand leads to innovations in bakery products such as biscuits, whole wheat, light, natural, and additive-free options, meeting consumers' dietary preferences for convenient and healthy baked goods like flour, eggs, cookies, muffins, bagels, and croissants, reflecting diverse cultures worldwide.
The growing prominence of gluten-free bakery products is notably driving market development. The market for gluten-free bakery products is expanding significantly due to the increasing prevalence of gluten intolerance and sensitivity among health-conscious individuals and fitness enthusiasts. These consumers are seeking hypoallergenic baking products that are free from gluten and chemicals. Major companies are responding to this demand by offering a wide range of gluten-free bakery items, including biscuits, muffins, bagels, croissants, and other baked goods.
This trend reflects the changing dietary preferences of consumers, who are increasingly prioritizing natural and additive-free bakery products made from whole wheat flour and eggs, including packaged croissants. As urbanization and modern lifestyles continue to influence consumer choices, the demand for convenient and healthy bakery products such as packaged croissants is expected to rise further. Manufacturers are responding by offering croissants that cater to health-conscious consumers, incorporating natural ingredients and reducing additives. The shift towards whole wheat flour and eggs aligns with consumer preferences for nutritious and wholesome bakery options. With convenience playing a key role in purchasing decisions, packaged croissants provide a convenient snack or breakfast option for busy individuals. This trend towards healthier bakery products is driving innovation in the market, prompting manufacturers to develop products that meet both nutritional standards and consumer expectations for taste and convenience.
Increasing on-trade sales of bakery products is an emerging trend shaping the market growth. The popularity of ambience-based hangouts, such as cafes and coffee shops, is increasing. The demand for items such as cookies as add-on offerings and premium delicacies is also increasing in these hangouts. Since the late 2010s, cafes, and coffee shop chains have evolved from simple purchase points to eateries and casual and work hangout destinations. Subsequently, leading coffee shop outlets such as Starbucks Corp. (Starbucks) are increasing their emphasis on developing in-house cookie brands, which are designed for convenient consumption.
Moreover, the growing penetration of coffee shop chains and cafe outlets in developing countries such as India is expected to encourage diversification in cookie offerings. According to Navin Gurnaney, CEO of Starbucks, India is among the company's top five growth markets worldwide. Thus, the increase in the on-trade sales is expected to continue to boost the growth of the market during the forecast period.
The volatility of raw material prices of bakery products is a significant challenge hindering market growth. The key raw materials used in the market include wheat and wheat flour, cocoa, dairy products, palm and other vegetable oils, sugar and other sweeteners, flavoring agents, and nuts. Bakers purchase and use significant quantities of packaging materials. Further, the application of enzymes in bakery products has increased as they enhance the volume and improve the texture and appearance of baked goods when compared with other functional ingredients such as ascorbic acid and vital wheat gluten.
Consequently, the demand for baking enzymes has increased since 2018. companies operating in the market might not be able to transfer the increasing operating cost to customers/end-users as there is intense competition between them in successfully retaining the customer base. Therefore, fluctuating prices of raw materials will be a major challenge impeding the growth of the market during the forecast period.
Companies 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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Aryzta AG, Associated British Foods Plc, Baker and Baker, Brezelbackerei Ditsch GmbH, Britannia Industries Ltd., Corporativo Bimbo SA de CV, Finsbury Food Group Plc, Flowers Foods Inc., Gruma SAB de CV, JAB Holding Co. Sarl, LE DUFF Group, McKee Foods, Puratos Group NV, Roberts Bakery, Starbucks Corp., The Bakery and Co., The Great Canadian Bagel Ltd., The J.M Smucker Co., Warburtons Ltd., and Yamazaki Baking Co. Ltd.
The market analysis and report of qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In today's modern life, consumer preferences in the bakery products market are shifting towards healthier options, driven by health-conscious individuals and fitness enthusiasts. This demand has led to a surge in products such as hypoallergenic and gluten-free baking products, meeting the needs of those seeking chemical-free and regulatory compliant items. Moreover, there's a growing emphasis on sustainability, with eco-friendly practices and environmentally friendly packaging gaining traction to address concerns about waste in the food chain. The market also reflects changing lifestyles, with a rise in online sales and convenience foods catering to busy schedules and on-the-go consumption. From fermented goods to organic and fortified products, innovations in bakery offerings cater to a diverse range of health concerns and preferences.
Health conscious individuals are driving a significant shift in the bakery industry, leading to the rise of products such as hypoallergenic and gluten-free baking products to cater to specific dietary needs. Consumers are increasingly seeking chemical-free options, pushing manufacturers towards regulatory compliance and sustainability. This has prompted innovations in flexible packaging to reduce environmental impact while ensuring freshness. Additionally, there's a growing preference for home cooking and organic baked goods, with an emphasis on single-serve packaged goods for convenience. The proliferation of online stores has made these products more accessible, offering a diverse range of options to health-conscious consumers amidst cost fluctuations.
The bakery industry is witnessing a transformation with the introduction of Hypoallergenic baking products and Gluten free baking products, catering to the dietary needs of health-conscious individuals. There's a growing demand for Chemical-free products, aligning with shifting consumer preferences towards healthier options. Additionally, innovations are meeting the evolving needs of consumers, including those of the Ex-pat population. Products like Biscuits are adapting to Consumers' changing lifestyles, offering options such as Whole wheat bakery products and Light (low calorie) bakery products. Furthermore, there's a rising interest in Natural and additive-free bakery products, reflecting a broader shift towards Healthy food choices. This trend extends to convenient bakery products that align with various dietary preferences.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Bakery-Products Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.91% |
Market Growth 2024-2028 |
USD 234.68 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aryzta AG, Associated British Foods Plc, Baker and Baker, Brezelbackerei Ditsch GmbH, Britannia Industries Ltd., Corporativo Bimbo SA de CV, Finsbury Food Group Plc, Flowers Foods Inc., Gruma SAB de CV, JAB Holding Co. Sarl, LE DUFF Group, McKee Foods, Puratos Group NV, Roberts Bakery, Starbucks Corp., The Bakery and Co., The Great Canadian Bagel Ltd., The J.M Smucker Co., Warburtons Ltd., and Yamazaki Baking Co. Ltd. |
Market dynamics |
Market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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