Fortified Bakery Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, Japan, Brazil - Size and Forecast 2024-2028

Fortified Bakery Market Size 2024-2028 

The fortified bakery market size is forecast to increase by USD 1.46 billion, at a CAGR of 5.36% between 2023 and 2028. The market is influenced by several key factors. Firstly, there is a rising awareness among consumers regarding the importance of good health, driving demand for products that promote well-being. Simultaneously, there is an increasing incidence of diseases linked to vitamin and calcium deficiencies, prompting a greater focus on supplementation and fortified foods. Additionally, there is a growing consumer preference for instant and nutritious products that cater to busy lifestyles without compromising on health benefits. These trends collectively shape a dynamic market environment, where innovation in product development, nutritional science, and consumer education plays a crucial role in meeting evolving health needs and preferences worldwide.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market encompasses a wide range of baked goods, including bread, rolls, cookies, pies, pastries, muffins, and more. These baked items undergo a fortification process, which involves adding essential micronutrients, vitamins, minerals, and proteins to enhance their nutritional value. The production of fortified bakery products utilizes various methods, such as the dry heat process in ovens or the use of micronutrient-rich grains. The market is segmented based on product type, application, and end-users. Bread and rolls hold a significant share in the market due to their widespread consumption. The unorganized segment, comprising smaller bakers and household sector, dominates the market, but organized players, including food services and meat product companies, are increasingly entering the market. The market has been impacted by the lockdown and raw material availability issues. However, the growing trend towards healthy food and convenience products is expected to propel the market's growth. The industry relies on the labor force for production and logistics facilities for distribution. Paper goods and hand sanitizer have become essential in the bakery industry due to the ongoing health crisis.

Key Market Driver

Rising awareness regarding good health is notably driving market growth. The market is experiencing significant growth due to the rising preference for healthy, nutrient-dense food items. The increasing population, particularly the working population, and urbanization have led to a surge in demand for convenient and nutritious food options. Fortified bakery products, such as cakes, cookies, biscuits, cupcakes, and pancakes, fortified with essential nutrients, have gained popularity as functional food alternatives. Additionally, the availability of a wide range of fortified bakery catering to various dietary requirements, including gluten-free, organic, sugar-free, low-calorie, and added nutrients, has further fueled market growth. The household sector and food services sector have been major contributors to the market's expansion.

However, the lockdown and disruptions in raw material availability have posed challenges for smaller bakers and the unorganized segment. The market is expected to continue its growth trajectory, driven by the increasing awareness of micronutrient deficiencies and the need for convenient, nutritious options for out-of-home consumption. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Rising consumption of vitamin-infused bakery product is the key trend in the market. The market presents a significant business opportunity due to the increasing preference for healthy, nutritious food products. With the growing awareness of micronutrient deficiencies and their health implications, the demand for fortified bakery items, including functional food and beverages, has witnessed a notable growth rate. This trend is particularly evident in the household sector and the food services sector, where consumers seek convenient and nutritious options. Bakers have responded to this demand by fortifying their products with essential vitamins and minerals. This fortification not only addresses nutritional deficiencies but also caters to the needs of the working population, who often have limited time for preparing nutritious meals. The unorganized segment of the bakery industry is also embracing fortification to meet the evolving consumer demands.

Moreover, the fortification of bakery products extends beyond vitamins to include disinfectants, such as those found in toilet paper and paper goods, as well as hand sanitizers. Meat products also benefit from fortification with essential nutrients, ensuring a balanced diet for consumers. The frequent launch of customized cakes, premium cakes, and a wide range of biscuits, cupcakes, pancakes, and other baked goods fortified with nutrients like gluten-free, sugar-free, and low-calorie options, further fuels the market growth. The ongoing urbanization and changing eating behaviors, particularly among the female working population, are also contributing factors. However, the availability of raw materials and logistics facilities remains a challenge for smaller bakers. The impact of lockdowns and disruptions in supply chains has further complicated the situation. Despite these challenges, the market continues to offer promising growth opportunities for businesses that can effectively address consumer needs and preferences. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Stringent government regulations is the major challenge that affects the growth of the market. The global market presents a significant business opportunity due to the increasing preference for functional food and beverages in addressing micronutrient deficiencies. This trend is particularly prominent in the urbanized areas with a growing working population and a higher demand for convenient, nutritious products. The market includes various segments such as bakers, labors, and logistics facilities, which have been impacted differently during the lockdown. While larger bakeries have managed to adapt to the changing market dynamics, smaller bakers and the unorganized segment have faced challenges in raw material availability and compliance with disinfectant and hygiene regulations. The household sector and food services sector have shown a shift towards healthy food options, driving the demand. This trend is further fueled by the changing eating behaviors of the female working population, who seek nutritious, gluten-free, sugar-free, and low-calorie products.

Also, the market includes a wide range of offerings, from premium cakes and customized cakes to staple food items such as biscuits, cupcakes, pancakes, and various types of bread. Nutrients such as vitamins, minerals, and fiber are increasingly being added to these products to cater to diverse consumer needs. The market also includes fortified meat products, toilet paper, paper goods, hand sanitizer, and other non-food items. The growth rate of the market is expected to remain steady, driven by the increasing awareness of the importance of healthy eating and the convenience offered by these products. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting 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 market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

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.

Allied Bakeries  - The company offers fortified bakery that includes delicious rolls, pancakes, crumpets, muffins, hot cross buns, wraps, and other delicious bakery products.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Archer Daniels Midland Co.
• Associated British Foods Plc
• Britannia Industries Ltd.
• Bunge Ltd.
• Chelsea Milling Co.
• Conagra Brands Inc.
• CRUST- a baking co.
• Dawn Food Products Inc.
• Flowers Foods Inc.
• Corporativo Bimbo SA de CV
• H and S Bakery Inc.
• Irish Pride Fine Foods
• King Milling Co.
• Koninklijke DSM NV
• Mars Inc.
• Modern Food Enterprises Pvt. Ltd.
• Nestle SA
• Parle Products Pvt. Ltd.
• Prestige Group
• Super Bakery Inc.
• SURYA FOOD and AGRO LTD.
• The Hershey Co.

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.

Market Segmentation

By Application 

The cake segment is estimated to witness significant growth during the forecast period. The market presents a significant business opportunity due to the increasing preference for healthy and nutritious food, particularly in the context of micronutrient deficiencies. Functional food, including bakery products fortified with essential nutrients, beverages, and convenience items, have gained popularity as consumers seek to maintain optimal health. Disinfectants, toilet paper, and paper goods, as well as meat products, have seen increased demand due to the ongoing pandemic and subsequent lockdowns.

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The cake segment was the largest and was valued at USD 2.61 billion in 2018. Bakers and their labor forces face challenges in securing raw material availability and logistics facilities, particularly for smaller bakeries and the unorganized segment. The household sector and food services sector have shown a shift towards healthy food options, driving growth in the market for nutritious bakery products.  Urbanization and the growing working population have led to an increase in out-of-home consumption, further boosting demand for convenient, nutritious bakery items. Customized cakes, premium cakes, gluten-free products, sugar-free products, and low-calorie products cater to specific dietary needs and preferences. The female working population and changing eating behaviors have contributed to the popularity of nutrient-dense bakery items, such as biscuits, cupcakes, pancakes, and other nutrient-rich baked goods. The market for fortified bakery products is expected to continue expanding, driven by consumer demand for healthy, convenient, and nutritious food options.

Regional Analysis

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North America is estimated to contribute 37% 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 Market encompasses a range of baked goods, including bread, rolls, cookies, pies, pastries, muffins, and more. These products are fortified with essential nutrients such as vitamins, minerals, and proteins, derived from flour and grains, through various processes like the dry heat method in an oven or micronutrient addition. The health-promoting effects of these fortified baked goods contribute to improved metabolism, reduced bad cholesterol levels, and a lower risk of cardiovascular diseases and non-communicable diseases.

In addition, with increasing consumer awareness and a shift towards healthier food alternatives, the demand for fortified bakery products has seen significant growth. Basic nutrition and hunger satisfaction are no longer the sole drivers of sales in this category. Cakes, biscuits, and other baked goods are now being produced using gluten-free and organic bakery ingredients to cater to diverse consumer preferences. The market is segmented into conventional and artisanal bakery products, with sales occurring in both store-based and non-store-based channels such as hypermarkets, supermarkets, and convenience stores.

Segment Overview

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.

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

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Market Analyst Overview

The market encompasses a wide range of products including bread, rolls, cookies, pies, pastries, muffins, and more. These baked goods are often fortified with essential nutrients such as vitamins, minerals, proteins, and micronutrients, contributing to their health-promoting effects. The use of fortified ingredients in bakery products is a response to the rising awareness of non-communicable diseases, including cardiovascular diseases and poor diet-related health issues, caused by a morbid lifestyle. Flour and grains are the primary raw materials used in the bakery industry. The dry heat process, often using an oven, is the most common method for baking these products. The fortification of bakery items with essential nutrients has gained significant traction due to the health benefits they offer, such as improved metabolism and reduced bad cholesterol levels.

Moreover, the consumer shift towards healthy food alternatives has led to an increase in demand for fortified bakery products. This trend is particularly noticeable in categories like cakes, biscuits, and even gluten-free options. The market is segmented into conventional and organic bakery products, with both store-based and non-store-based retail channels catering to consumer needs. Hypermarkets and convenience stores are the major distribution channels for fortified bakery items. Artisanal bakery products, made with organic bakery ingredients, have gained popularity due to their perceived health benefits and unique taste. These products offer a healthier alternative to mass-produced baked goods, appealing to health-conscious consumers. Overall, the market is poised for growth as consumers seek to satisfy their hunger for both basic nutrition and enjoyable food experiences.

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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 between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies