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The 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 growing prominence of gluten-free bakery products is notably driving market development. Gluten is a protein found in grains like wheat, barley, and rye. It gives foods their elasticity and chewy texture. Gluten is often added to foods to change the structure and stability of products like salad dressings and condiments or deli meats. Many consumers have gluten intolerance or sensitivity, which can cause side effects such as digestive issues and celiac disease. Gluten-free bakery products include bagels, baking mixes, muffins, rolls and buns, cornbread, focaccia, croissants, pies and cakes, bread, crackers, pretzels, cookies, and wafers.
Additionally, the increasing number of product offerings under the gluten-free category from major vendors is one of the major factors driving the demand for gluten-free bakery products in the global market, which will aid the growth of the market during the forecast period.
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 bakery products 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 of bakery products, such as cookies, 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 for packaging bakery products. 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. Vendors 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.
The bread and rolls segment of the market primarily includes products such as whole wheat bread, sourdough, rye bread, pita bread, focaccia bread, multigrain bread, white rolls, hot dog rolls, and sub rolls. The increasing demand for gluten-free bread and rolls is a major factor driving the growth of the segment. Wheat is the major raw material used in the manufacturing of bread. The gluten present in wheat might create several health complications, such as wheat allergy and celiac disease, as well as symptoms, such as bloating, cramps, diarrhea, and sickness. Further, the increase in demand for free-from products is expected to encourage other major vendors to offer such products, which will increase the growth of the bread and rolls segment in the market during the forecast period.
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 bread and shorter queueing times at shop counters, are increasing the demand for retail formats such as convenience stores. Thus, the overall sales of bakery products like bread through convenience stores are increasing at a significant rate. Independent retailers 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 bakery products like bread through this channel are expected to increase which simultaneously will fuel the growth of the offline segment in the 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 vendors, 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.
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.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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 |
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, and Market condition analysis for the 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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