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The specialty bakery market size is projected to increase by USD 15.87 billion with a growth at a CAGR of 5.29% between 2023 and 2028.
The growth momentum in North America's specialty bakery sector, driven by increasing demand for healthier grain flours like millet and quinoa, mirrors a shift in consumer preferences towards gluten-free choices. Amazon's 365 EVERYDAY VALUE brand exemplifies the convenience and health advantages of private-label bakery products. Major players, including Grupo Bimbo SAB de CV, are venturing into private-label offerings to optimize profit margins and build robust partnerships. Taking a global outlook, these trends, in line with projections, propel market expansion through strategic analyses, addressing dynamic consumer consumption patterns. Aryzta AG specializes in diverse bakery products, including bread rolls, artisan loaves, sweet baked goods, morning items, and savory options. Such factors will increase the market growth in this region during the forecast period.
The Specialty Bakery Market shows an Accelerated CAGR during the forecast period.
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Growing demand for functional ingredients is the key factor driving market growth. Functional ingredients are health-promoting and energy-boosting ingredients that are used to enhance the nutritional value of bakery products. With growing concerns regarding a healthy lifestyle among consumers, bakery manufacturers have introduced the use of such ingredients in their offerings.
Additionally, functional ingredients confer tenderness, moisture, and structural strength to the products and also support the mixing, depositing, and baking of ingredients. Manufacturers have introduced newer healthy ingredients. For instance, the usage of nut meal and nut flour is increasing among manufacturers. This is mainly because they are gluten-free ingredients and blend easily with other ingredients. Therefore, the growing demand for functional ingredients will drive the market growth during the forecast period.
Growth in demand for private-label bakeries is the primary trend shaping market growth. Private-label bakeries are found in hypermarkets, supermarkets, grocery stores, and departmental stores and are relatively small. They offer a substantial range of specialty baked products, which includes those that use whole grain and similar healthier ingredients. Artisanal and industrial bakeries face stiff competition from the growing number of in-store supermarket bakeries that have their offerings with competitive pricing.
Furthermore, refrigeration increases the shelf life of par-baked items, and the lower temperature retains the texture of crumbs and prevents them from hardening. In addition, many quick-service restaurants and supermarkets use this technique for their bread and, occasionally, doughnuts. It is an economical option and is of comparable quality with branded products. Therefore, such factors drive the growth of the global specialty bakery market during the forecast period.
Fluctuating raw material prices of specialty bakery products is a challenge that affects market growth. The major raw materials required to produce bread and rolls include flour, sugar, salt, and milk. The prices of all these ingredients are witnessing a continuous rise due to the increasing costs of production. As a result, manufacturers of bread and rolls incur more costs on raw materials. Furthermore, the supply of raw materials may be affected due to adverse weather conditions, national emergencies, strikes, governmental controls, natural disasters, supply shortages, or other unexpected events.
Moreover, supply supply-demand gap may increase costs, in turn, requires manufacturers to hike product prices. This becomes a challenge for players to introduce new product varieties with specific ingredients that enrich the taste and attract more consumers. This is because rising product prices affect the buying decisions of consumers, which, in turn, affects the performance of the industry. Therefore, fluctuating raw material prices may impede market growth during the forecast period.
Specialty bread is a staple food and a versatile product that is prepared from flour and water. It varies in texture, color, shape, and size across the world and can be consumed as snacks, meals, or desserts. The different types of specialty bread include gluten-free, high-fiber loaves, low-fat, and other similar bread varieties. It also includes bread varieties that are made from healthier ingredients like superfoods, whole wheat, multigrain, and other similar products. The specialty bread segment is primarily driven by the growing preference for vegan, healthy, and low-calorie foods and the presence of healthy varieties of bread in the market. Consequently, the growing health consciousness among consumers drives the growth of the specialty bread segment in the global specialty bakery market during the forecast period.
The market share growth by the offline segment will be significant during the forecast period. The offline segment consists of supermarkets, hypermarkets, and convenience stores. Supermarkets and hypermarkets have emerged as the most popular distribution channels for specialty bakery products, such as specialty bread, specialty cookies, and specialty cakes. Factors such as discounted prices and a pleasant shopping experience offered by the ambient store atmosphere and shelf displays encourage consumers to buy bakery products from supermarkets and hypermarkets.
The offline segment was valued at USD 36.68 billion in 2018.
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Moreover, 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. The overall sales of specialty bakery products like specialty bread through convenience stores are increasing at a significant rate. Therefore, the offline segment is expected to grow and, in turn, propel the growth of the global specialty bakery market during the forecast period.
North America is estimated to contribute 36% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America holds a strong position in the global specialty bakery market. The US, Mexico, and Canada are among the major markets for specialty bakery products in North America. The market is increasing steadily due to the growing demand for convenience foods and on-the-go snacks. Growing health consciousness and indulgent eating habits of consumers further drive the market growth in this region. Among all bakery products, the specialty bread segment registers the highest demand, followed by cookies. In addition, the rise in in-home cooking and experimentation with various products also propel the market to a considerable extent. Artisanal bakery products dominate the specialty bakery market and are expected to continue during the forecast period as well.
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.
The Specialty Bakery Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Conagra Brands Inc., Dawn Food Products Inc., EUROPASTRY SA, Flowers Foods Inc., Corporativo Bimbo SA de CV, Harry Brot GmbH, Hostess Brands Inc., IL GERMOGLIO FOOD SRL, Krispy Kreme Inc., Lantmannen Unibake International, Maple Donuts Inc., McKee Foods, Puratos Group NV, Raisio plc, Rich Products Corp., UAB Mantinga Group, and Yamazaki Baking Co. Ltd.
Specialty Bakery Market 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 specialty bakery market research 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.
Specialty Bakery Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.29% |
Market Growth 2024-2028 |
USD 15.87 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.37 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aryzta AG, Associated British Foods Plc, Britannia Industries Ltd., Conagra Brands Inc., Dawn Food Products Inc., EUROPASTRY SA, Flowers Foods Inc., Corporativo Bimbo SA de CV, Harry Brot GmbH, Hostess Brands Inc., IL GERMOGLIO FOOD SRL, Krispy Kreme Inc., Lantmannen Unibake International, Maple Donuts Inc., McKee Foods, Puratos Group NV, Raisio plc, Rich Products Corp., UAB Mantinga Group, 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 you are looking for, you can reach out to our analysts and get customized segments. |
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