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The bread market size is projected to increase by USD 116.1 billion at a CAGR of 6.78% between 2023 and 2028. The market is experiencing significant growth due to urbanization and evolving consumer preferences. Convenience and ready-to-eat food options are increasingly in demand, with bakery products being a popular choice. The retail sector's expansion, including the proliferation of supermarkets and hypermarkets, presents more purchasing opportunities for consumers. In-store bakeries within these retail outlets are particularly attractive, as they offer freshness and variety, drawing in consumers seeking high-quality baked goods.
The market shows an Accelerate CAGR during the forecast period.
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The bread industry continues to innovate, catering to health conscious consumers with a variety of options such as whole meal bread, fortified bread, clean label bread, and organic bread. Bread manufacturers are exploring functional ingredients like legumes, which enhance protein content and nutritional value. Consumers now seek specialty bread with sweet and savory fillings, meeting demand through E-commerce platforms offering convenience and diverse delivery methods. The industry is also focusing on sustainability with recycled plastic packaging for value added products. As household staples, breads play a crucial role in daily diets, leveraging natural ingredients and Omega 9 to appeal to a wide range of tastes and dietary preferences.
The rising prominence of in-store bakeries in supermarkets is notably driving market growth analysis. In supermarkets and hypermarkets, you can find in-store bakeries, which, despite their smaller size, offer a diverse array of baked goods such as cakes, pastries, and more. They are particularly known for their specialty. These bakeries are gaining prominence due to their competitive pricing and the convenience of one-stop shopping, catering to value-conscious consumers who often prefer private labels from supermarkets.
In recent years, there has been a surge in the popularity of parbaked, pre-baked, and bake-off product ranges globally. Parbaking involves partially baking the batter for a short duration, then cooling and refrigerating it until final baking. This technique is widely employed by supermarkets and quick-service restaurants, as it extends product shelf life and maintains texture. Such products offer consumers the convenience of baking with minimal time and effort. These trends are expected to fuel market growth during the forecast period.
Increased snacking and indulgence consumption is a key trend in the market. Consumption patterns and food preferences have undergone a notable change as most consumers are trading their routine meals for snacks. The number of consumers who prefer healthy snacks is rising, especially in developed regions such as North America and Europe.
Fast-paced lifestyles often compel consumers to skip their meals and consume on-the-go food. Similarly, the consumption of bakery products such as rolls, pies, and other similar products for breakfast has surged primarily due to hectic lifestyles. This is a versatile product that can be modified easily and consumed as a healthy snack. Apart from sandwiches, they can be used as a basic ingredient for various snacks, such as French toast, bruschetta, puddings, garlic bread, bread salad, and breakfast toast. The nutritional level of these foods can be strengthened by using different kinds, such as multigrain, whole wheat. Although consumers have become very health-conscious and prefer healthy snacks, the market for indulgent and premium food varieties, such as premium sandwiches and burger buns, is growing, increasing the demand. Hence, such factors are driving the market during the forecast period.
Fluctuating raw material prices is the major challenge impeding market growth. The major raw materials include flour, sugar, salt, and milk. The prices of all these food materials are increasing due to the increasing production cost. As a result of this, the manufacturers incur more costs for raw materials.
Further, the supply of raw materials may be affected due to adverse weather conditions, strikes, governmental controls, national emergencies, natural disasters, supply shortages, or any other unexpected events. This increasing cost causes the product price to increase. As an effect of this, it becomes a challenge for marketers to introduce new product varieties in the market with specific ingredients that help enrich the taste and thus attract more consumers. The rising product price would affect the consumer's buying decisions, which, in turn, affects the industry's performance. Hence, such factors are hindering the market during the forecast period.
The market share growth of the artisan bread segment will be significant during the forecast period. The global market will grow at a steady pace during the forecast period. Consumer demand will remain steady in the market as different varieties are available at competitive prices. Most of them is ethnic varieties. This is often sold within two days of manufacturing. Owing to the demand and popularity, it is also available in supermarkets and hypermarkets. The growth of the artisan segment will be aided by an increase in multiple purchasing and varieties. Furthermore, healthy ingredients like soy are often used to enhance their natural and healthy properties.
The artisan bread segment was valued at USD 102.5 billion in 2018.
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The average age of consumers who prefer this ranges from 30 to 35 years. The penetration of this age group for hypermarkets and supermarkets is high, which, in turn, is expected to spur the global market in the next five years. Various vendors in the market are offering breads that are made with multi-seeds and are gluten-free, halal-certified, and kosher-certified. This is highly preferred by consumers that are diet conscious and require high nutritional content in everyday meals. Therefore, the factors mentioned above are likely to propel the growth of the market focus during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the market forecast period
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In the dynamic world of food consumption, the Bread Market continues to evolve, with private labels increasingly gaining traction. Consumers now prefer the convenience of e-commerce platforms for purchasing their staple food item, bread. Freezing techniques enable longer shelf life, ensuring uninterrupted supply of loaves. E-commerce sales in the bread sector are on the rise, with delivery methods becoming more diverse. Recycled plastic packaging is a sustainable solution, aligning with changing consumer behavior towards eco-friendliness. Gluten-free bread, a niche segment, caters to those with dietary restrictions, fostering direct consumer relationships. Bakery manufacturers adapt to this shift, offering whole grain and gluten-free options. Vaccination drives and the normalization of online grocery shopping have further boosted home delivery services, making bread a convenient choice for households. The convenience factor, coupled with the health benefits of whole grain and gluten-free bread, positions the market for continued growth. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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 Key companies, including:
AB Mauri UK Ltd., AGROFERT AS, Angel Bakeries, ARYZTA AG, Bakers Delight, Bakkerij Borgesius, Barilla G and R Fratelli Spa, Braces Bakery Ltd., Britannia Industries Ltd., Campbell Soup Co., Corporativo Bimbo SA de CV, Finsbury Food Group Plc, Flowers Foods Inc., Fuji Baking Group, Modern Food Enterprises Pvt. Ltd., Monginis Foods Pvt. Ltd., Pasco Shikishima Corp., 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 report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The bakery items sector is evolving with a focus on health and innovation, offering a variety of products such as regional bread specialties, artisanal bread, and gluten-free bread to cater to diverse dietary needs. Legumes like lentils are increasingly used in fillings and wholesome flour blends, providing high protein and aiding in cholesterol reduction, weight management, and sugar control. Brands like Moulins Dumée and Moulins Bourgeois emphasize sustainable labeling and packaging, appealing to environmentally conscious consumers. E-commerce platforms have boosted E-commerce sales, offering convenience and access to supplemental nutrients and vitamins through products like the Chanvrine flour blend. With a growing focus on health and well-being, local and specialty bakeries continue to innovate with functional food products tailored for an aging population.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 116.1 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
6.22 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, UK, China, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Mauri UK Ltd., AGROFERT AS, Angel Bakeries, ARYZTA AG, Bakers Delight, Bakkerij Borgesius, Barilla G and R Fratelli Spa, Braces Bakery Ltd., Britannia Industries Ltd., Campbell Soup Co., Corporativo Bimbo SA de CV, Finsbury Food Group Plc, Flowers Foods Inc., Fuji Baking Group, Modern Food Enterprises Pvt. Ltd., Monginis Foods Pvt. Ltd., Pasco Shikishima Corp., The J.M Smucker Co., Warburtons Ltd., and Yamazaki Baking Co. Ltd. |
Market dynamics |
Parent market analysis, market research and growth, 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 market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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