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The fresh baked products market size is forecast to increase by USD 88.9 billion, at a CAGR of 5.9% between 2023 and 2028. The market growth and forecasting depend on several factors, including a strong distribution network between manufacturers of bakery products and customers, the growing prominence of gluten-free bakery products such as bread, and the use of functional ingredients. The growing fresh-baked products market is significantly influenced by the distribution network connecting bakery manufacturers with consumers. Both manufacturers and consumers are increasingly prioritizing the enhancement of their distribution channels to keep pace with the surging global demand for such products. Establishing and nurturing customer partnerships stands as a crucial business imperative for manufacturers of fresh baked goods. Primary purchasers of these products include supermarket chains, hypermarkets, catering establishments, corporate clients, small convenience stores, and retailers. The escalating consumer appetite for baked goods has prompted numerous major retailers to include these items in their inventory.
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The market share by the breads and rolls segment will be significant during the forecast period. The bread and rolls segment of the market mainly includes products such as whole grain bread, sourdough, rye bread, flatbread, focaccia bread, multigrain bread, white bread, hot dog, sub bread, etc. Increasing demand for gluten-free products, bread, and rolls is a major growth driver for this segment.
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The breads and rolls segment was valued at USD 118.20 billion in 2018 and continued to grow until 2022. Wheat is the most important ingredient in making bread. Gluten in wheat can cause health complications such as wheat allergies and celiac disease, as well as symptoms such as bloating, cramps, diarrhea, and nausea. Consumers are increasingly choosing bread made from gluten-free ingredients. Large suppliers offer a wide variety of gluten-free bread products. Rising demand for gluten-free products is expected to drive other major suppliers to offer such products during the forecast period. This is expected to drive the growth of the segment and drive the growth of the market during the forecast period.
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APAC is estimated to contribute 34% to the growth of the market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, Japan, India, and Australia are among the most important markets in the APAC region. The regional market is driven by the expansion of the regional global player through organic and inorganic organizational development. For example, in February 2023, Wendy's announced plans to open hundreds of stores in Australia.
Further, the growing demand for freshly baked goods in the region is due to rising consumer disposable income, the growing influence of Westernization, changing lifestyles, and urbanization. Additionally, with the growing demand for healthier products, manufacturers are introducing different healthy variations of baked goods. The demand for fresh baked goods is further fueled by the growing demand for takeaway breakfasts, including muffins. Similarly, the availability of gluten-free baked goods and enhanced/functionality (FF) baked goods are contributing significantly to market growth during the forecast period.
The market is witnessing an increase in demand driven by changing lifestyles and a growing ex-pat population seeking convenient foods. Consumers are increasingly prioritizing healthy living, leading to a preference for natural, organic, and gluten-free options. Bakery products like biscuits, bread, and rolls are evolving to offer nutritionally balanced options such as whole wheat, multigrain, and low-calorie variants. Manufacturers are innovating to meet these demands, with a focus on additive-free and nutritionally rich offerings. 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.
The strong distribution network between bakery product manufacturers and customers is notably drivingmarket growth. Manufacturers and customers in the market are emphasizing strengthening their distribution networks to meet the rapidly growing demand for such products worldwide. Building customer partnerships is a key business requirement for fresh baked goods manufacturers. Supermarket chains and hypermarkets, catering chains, corporate customers, small convenience stores, and retailers are the primary buyers of fresh baked goods. Growing consumer demand for baked goods has led many major retailers to stock these products. Further, with an emphasis on plant-based chocolate biscuits and other items free from artificial additives and refined sugars, reflecting a growing preference for immune-boosting, prebiotic fiber-rich, and zero palm oil offerings in various formats like thins, in alignment with evolving consumer preferences for health and well-being across the supply chain and product array.
Additionally, The market is witnessing demand for health-conscious options, including fat-free, sugar-free, and wheat-free products, as advocated by organizations like the Celiac Disease Foundation. Market players strive to maintain and enhance brand value by launching brands in new territories and expanding into new distribution platforms such as e-commerce. It is also important that these providers build a healthy network of customers. Therefore, a strong distribution network between bakery makers and customers will increase the availability of bakery products especially in emerging markets, boosting the growth of the market during the forecast period.
Increasing the online presence of bakery product companies is a key trend influencing market growth. The prevalence of smartphones combined with the spread of the internet-fueled online sales of baked goods. The grocery delivery platform offers consumers the opportunity to choose from a wide range of brands and purchase baked goods at their convenience. For example, Panera Brot uses a digital platform to deliver an omnichannel experience to its customers.
Moreover, companies are eager to offer baked goods through online platforms because it allows easier market access and reduces overhead by reducing retail space and labor requirements. Selling products online also allows companies to expand their market share to areas that are physically unreachable. Therefore, increasing the online presence of bakery companies will boost market growth during the forecast period.
The volatility of raw material prices is challenging market growth. Major raw materials used in the market include wheat flour, cocoa, dairy products, palm, and other vegetable oils, sugar, and other sweeteners, flavors, and nuts. Bakeries purchase and use large amounts of packaging materials for their bakery products, including bakery premixes.
Further, the prices of these commodities are volatile and may fluctuate due to conditions such as competition for resources, tariffs, and other trade barriers, adverse weather, potential long-term impacts of climate change on agricultural productivity, plant diseases or pests, water risks, and many more. Therefore, volatility in raw material prices will be a major challenge hindering the growth of the market during the forecast period.
The market research 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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Market players 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.
The market industry report also includes detailed analyses of the competitive landscape of the market and information about 16 market companies, including:
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 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing a surge in demand driven by innovations and changing dietary preferences. Consumers seek natural nutrition and organic products, with a focus on nutrition profile and accessibility. With a growing health-conscious population, there's increased interest in low-calorie, additive-free bakery products, including multigrain and gluten-free options. This trend aligns with the rise of 'Free-from' food products, catering to those with allergies and health concerns like obesity and diabetes. The market also sees demand for vegan and thins format offerings, driving growth in the European bakery market.
Additionally, the surge in demand for 'free-from' food products, including multigrain bakery items and teacakes, reflects significant factors shaping the modern market, with consumers increasingly seeking healthy, light options low in calories and free from artificial additives, to address concerns such as indigestion and immune reactions, particularly in relation to gluten-free products, highlighting the importance of catering to diverse dietary needs and preferences, even in frozen food products. The global bakery product market is a vibrant and dynamic industry, encompassing a wide range of freshly baked goods from various ethnic cuisines and Western staples. From bagels and croissants to wholegrain bread, ready-to-eat pastries, and transfat-free donuts, the market caters to diverse consumer preferences.
Freshness is a key factor, with baking enzymes and logistics playing crucial roles in maintaining the quality and energy utilization of these products. Ethnic cuisines, such as Indian, Chinese, and Middle Eastern, bring innovative flavors and high-fiber, low-sugar options to the table, while Western cuisines continue to dominate with their classic baguettes, croissants, and donuts. Specialty stores and packaged goods offer convenience, but consumers are increasingly concerned with health effects, leading to a surge in demand for high-fiber, wholegrain products, low-sugar pastries, and transfat-free items. The industry responds with a focus on grain-based flours, leavening agents, and nutrient-rich ingredients like proteins, dietary fibers, B vitamins, and minerals. Malnutrition and its health effects are a growing concern, making it essential for the bakery product market to adapt and innovate. In summary, the bakery product market is a rich tapestry of flavors, traditions, and health-conscious choices, with a commitment to freshness, quality, and consumer satisfaction.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.9% |
Market growth 2024-2028 |
USD 88.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
China, US, Germany, Japan, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ANDRE BOUDIN BAKERIES INC., Atlanta Bread Co. International Inc., BAB Inc., BreadTalk Group Pte Ltd., Corporativo Bimbo SA de CV, Einstein Noah Restaurant Group Inc., Finsbury Food Group Plc, Fresh Baked Goodness, Greggs Plc, Inspire Brands Inc., Krispy Kreme Inc., LE DUFF Group, MONBAKE GRUPO EMPRESARIAL S.A.U., Mondelez International Inc., Panera Bread Co., Rich Products Corp., The European Bakery, The Wendys Co., Trenker Johann KG, and VIVESCIA |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, 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. |
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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