Bread Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, UK, Germany, France - Size and Forecast 2023-2027

Bread Market Forecast 2023-2027

The bread market is estimated to grow by USD 118.37 billion at a CAGR of 7.27% between 2022 and 2027. Rising urbanization and changing consumer lifestyles are leading to an increased demand for convenient and ready-to-eat food options, including bakery products. The expansion of the retail landscape, including the growth of supermarkets and hypermarkets, provides more opportunities for consumers to purchase bakery products. The rising prominence of in-store bakeries in supermarkets is also contributing to market growth, as consumers are drawn to the freshness and variety of products offered in these settings.

What will be the size of the Bread Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by product (artisan bread, packaged bread, and others), distribution channel (offline and online), 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.

By Product

The market share growth of the artisan 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.

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The artisan segment was valued at USD 97.71 billion in 2017 and continue to grow until 2021. 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.

By Region

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Europe is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The key factors driving the market are an increase in the number of private labels in this region, especially in Western Europe, and discounts offered by grocery retailers, which have fueled the sales of both existing and new private label products. Preservatives and additives-free and gluten-free are popular products among consumers in Europe. In addition, consumers in Europe prefer that is natural, comes in unique shapes, has clean label information, and can act as an effective meal replacement and on-the-go breakfast option.  Furthermore, consumer demand has evolved from convenience-based foods to wholesome and health-based snacks. This change in consumer preference has fueled the demand of the market.

Market Dynamics and Customer Landscape

The market is diverse, offering a range of products to meet consumer preferences. Ethnic bread, whole-meal, and specialty with oats, bran, and seeds cater to health-conscious consumers. Baked goods are considered household staples, particularly among time-poor consumers seeking convenience foods. Bakery manufacturers are leveraging online shopping trends and adhering to international quality standards to meet consumer demand. Opportunities for bakery manufacturers lie in offering a variety of baking ingredients and products such as pastries, biscuits, and dietary items to expand their market valuation. Sales remain strong, with flour and yeast being key ingredients driving 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.

Key Market Driver

The rising prominence of in-store bakeries in supermarkets is notably driving market growth. 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 in the forecast period.

Key Market Trends

Increased snacking and indulgence consumption is a key trends 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.

Key Market Challenge

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.

Key Market Customer Landscape

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 Market Customer Landscape

Who are the Major Bread Market Companies?

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.

Hostess Brands - The company offers bread under the brand name Hostess, Voortman, Dolly, and Cloverman. The brand offers sweet baked goods, cookies, bread, and buns that are sold under the Hostess, Voortman, Dolly Madison, Cloverhill, and Big Texas brands.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• AB Mauri 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.
• Finsbury Food Group Plc
• Flowers Foods Inc.
• Fuji Baking Group
• Corporativo Bimbo SA de CV
• Modern Food Enterprises Pvt. Ltd.

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.

Segment Overview

The 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. 

• Product Outlook
  • Artisan bread
  • Packaged bread
  • Others

• Application Outlook 
  • Offline
  • Online

• Region Outlook 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Market offers a diverse range of products, including organic bread, whole wheat bread, and sourdough bread, catering to Time-poor consumers seeking convenience. Private-label brands and packaged bread manufacturers focus on Price competition to attract consumers. Quality bread with Supplemental nutrients and Protein content appeals to health-conscious individuals. Regional bread specialties and Sustainable labeling and packaging address Regional and cultural differences and Sustainability concerns. Opportunities for bakery manufacturers lie in Online shopping and Value-added grain products. Regulatory concerns regarding Sugar control and Wholesome flour blends drive industry standards. Production facilities prioritize Water conservation and Sustainability.

The Market is witnessing a shift towards health and wellness trends as health-conscious consumers seek healthier bread options such as High-protein and High-fiber bread. Local and specialty bakeries are meeting the demand for Natural ingredients and Natural preservatives, while new product development focuses on Innovations like Low-carb bread and Multigrain bread. International quality standards ensure Nutritional benefits are met, with Omega-3 and Omega-9 fortification. Household staples like White bread and Whole grains remain popular, along with Savory fillings and Sweet fillings. Production facilities like Moulins Dumée drive Inorganic growth strategies to meet consumer demands, emphasizing Weight management and Vitamins.

The Market is adapting to meet the diverse needs of consumers, including the Aging population seeking Antioxidants and Cholesterol reduction. Artisanal bread and Ethnic bread reflect a demand for Ethical and environmentally friendly products, while Bagels, Croissants, and Donuts cater to Consumer preferences for Convenience foods. The market is influenced by economic factors and Food security concerns, driving innovation in Bread improvers, Enzymes, and Emulsifiers. Clean-label bread and Fortified bread with Functional ingredients like Flaxseed-and-hemp appeal to health-conscious consumers. Local resources and Global Bread Industry standards shape the industry, with companies like Puratos subsidiaries focusing on Customer support and Innovation in their Production facility to deliver Customized cakes and meet the demand for Convenience and accessibility through e-commerce.

Bread Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.27%
Market growth 2023-2027	USD 118.37 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	6.2
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 36%
Key countries	US, China, UK, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	AB Mauri 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., Finsbury Food Group Plc, Flowers Foods Inc., Fuji Baking Group, Corporativo Bimbo SA de CV, Hostess Brands Inc., Modern Food Enterprises Pvt. Ltd., Monginis Foods Pvt. Ltd., Pasco Shikishima Corp., Yamazaki Baking Co. Ltd., and Warburtons Ltd.
Market dynamics	Parent market analysis, Market Forecasting, 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 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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