Global Bakery Products Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Bakery Products Market Trends

The market is driven by inflating disposable income of consumers in emerging nations. Moreover, the increasing demand from Tier 1 cities where customers are inclined towards western cuisines, including baked goods is also accelerating the bakery products market expansion. For instance, China's disposable income has increased gradually over the past ten years. In nominal terms, China's per capita disposable income increased by 6.3 percent annually to 39,218 yuan (or around USD 5,511) in 2023. In other words, the per capita disposable income in urban areas increased to 51,821 yuan, or 5.1% in nominal terms and 4.8% in real terms, while the corresponding figure in rural regions increased to 21,691 yuan, or 7.7% in nominal terms and 7.6% in real terms.

The rising demand for frozen bakery products owing to their convenience and prolonged shelf life is further supporting the market. Furthermore, the expansion of online bakery platforms has provided a significant boost to the growth of the market.

Over the forecast period, the demand for diversified products such as organic and gluten-free products is expected to surge owing to evolving consumer preferences, encouraging manufacturers to develop innovative bakery products, thus aiding the market development.

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Bakery Products Market Growth

The rising demand for ready-to-eat and convenience foods due to hectic lifestyles is a major driver for the bakery products market growth. Consumers are increasingly seeking bakery items that are fresh, have a long shelf life, and look and taste appealing even after being stored for some time. The escalating per-capita income in developing nations and the increasing adoption of western diets in Asia Pacific countries are poised to further drive the market.

Industry News

May 2023

Mondelez International has made significant strides in advancing its "Snacking Made Right" ESG goals, confirming progress in sustainable snacking initiatives. The company has reaffirmed its commitment to transparency by providing measurable information on its ESG goals, policies, and programs.

September 2022

Finsbury Food Group introduced a new HFSS-compliant brand called Baked, offering healthier alternatives in the cake and snacking categories. The brand features five-pack cake slices in Lemon Drizzle and Sticky Toffee flavours.

Bakery Products Market Drivers

E-commerce and diversified product sales

Consumers have increasingly turned to online platforms for their daily essentials, including bakery products. Hence, the bakery products market is witnessing a significant shift towards e-commerce, which is driving diversified product sales with unique flavours and aromas. Sales of bakery products have been boosted by services like Amazon Fresh, Instacart, and regional online grocery stores. In addition to bread and pastries, consumers are becoming more interested in specialty and artisanal goods, which are typically more difficult to locate in neighborhood brick-and-mortar stores. According to a McKinsey & Company poll from 2021, around 25% of consumers in North America and Europe are making more frequent purchases of bakery products online. The survey also showed that the primary drivers of online bakery item purchases among these consumers, as reported by 60% of them, were time- and convenience-saving factors. Vegan bakery items are becoming more and more popular due to the worldwide trend toward plant-based diets, and they are primarily offered for sale online. Brands like "Vegan Treats" in the U.S. and "Livia's Kitchen" in the UK have experienced rapid growth in e-commerce sales as consumers search for plant-based alternatives to traditional baked goods.

Popularity of traditional and artisanal bread varieties

Consumers are increasingly seeking unique and authentic bread experiences, leading to the popularity of traditional and artisanal bread varieties. Customary bread varieties such as baguettes, ciabatta, and naan bread have become internationally renowned and are currently extensively accessible in numerous markets. Traditional bread-making methods have been kept for years in countries like Germany, France, and Italy, and customers are increasingly seeking for these genuine, handcrafted goods. For instance, classic bread kinds like pumpernickel and Vollkornbrot (whole grain bread), which are well-known in Germany for their vast diversity of bread types, are experiencing a resurgence in popularity. Because people recognize the skill that goes into making them, breads like Pane di Altamura, a durum wheat bread from the Puglia area, are becoming more and more popular in Italy.

Expansion of convenience stores

The rapid expansion of convenience stores in semi-urban areas is boosting bakery products market growth, driven by the increasing demand for nutritious bakery items among the working-class population. Convenience stores have rapidly expanded throughout Asia-Pacific, especially in nations like China, Japan, and South Korea. Data from the Japan Franchise Association (JFA) indicates that there were over 55,000 convenience stores in Japan in 2023, with well-known chains like 7-Eleven, Lawson, and FamilyMart still growing. Comparably, chains of convenience stores have flourished in China, where there will be over 170,000 locations by 2022—a 10% rise from the year before. Growing consumer demand for freshly baked and ready-to-eat (RTE) baked goods is one of the main factors propelling the bakery products market's success in convenience stores. More and more customers are searching for bakery goods including sandwiches, doughnuts, croissants, and muffins that they can have on the go. For instance, 7-Eleven has concentrated on growing its selection of fresh foods, especially fresh baked goods, throughout the world. The company has capitalized on consumer desires for freshly cooked foods by introducing a comprehensive variety of pastries, sandwiches, and onigiri (rice balls) in Japan.

Opportunities in the Bakery Products Market

Emergence of plant-based options and gluten-free varieties

Consumers are increasingly seeking healthier and more diverse bread options, leading to a product diversification. Manufacturers are introducing new flavours, textures, incorporating ancient grains, seeds, and herbs into bread recipes, as well as developing gluten-free and low-carb bread options. A 2019 study from The University of Oxford found that adopting a plant-based diet might cut a person's dietary carbon footprint by up to 73%. This is in line with customers' growing desire for plant-based baked goods as they explore for more environmentally friendly eating options. U.S. retail sales of plant-based foods increased by double digits in 2020, reaching 27% and bringing the overall market value of plant-based products to $7 billion, according to data released today by the Plant Based Foods Association (PBFA) and The Good Food Institute (GFI). Plant-based meat is now purchased by 18% of American households, up from 14% in 2019. According to a 2021 report from The New York Times, major brands like General Mills and King Arthur Baking Company have expanded their gluten-free product lines to meet growing consumer demand, including gluten-free flours, mixes, and ready-made baked goods.

Market Dynamics

Product innovation, strategic alliances, and effective branding and marketing strategies by key players are other factors propelling the growth of this market. The growing popularity of specialised bakery products like gluten-free, high-fiber, and trans-fat-free items in regions like Europe is also contributing to bakery products market development. One significant strategic relationship in 2023 was that of Perfect Snacks, a business well-known for its chilled protein bars, and Mondelēz International. Through this partnership, Mondelez is able to expand into the refrigerated baking market, which is growing in popularity because of its fresh and healthful stance and diversify its range of bakery products.

Furthermore, to improve its sustainable standards, Grupo Bimbo, one of the biggest baking firms in the world, teamed up with Danish engineering firm Danfoss in May 2023. With an emphasis on lowering emissions and energy consumption in the baking industry, the two businesses are aiming to increase the energy efficiency of Grupo Bimbo's production processes.

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Bakery Products Industry Segmentation

The EMR’s report titled “Bakery Products Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Biscuits
  • Cookies
  • Cream Biscuits
  • Glucose Biscuits
  • Marie Biscuits
  • Non-Salt Cracker Biscuits
  • Salt Cracker Biscuits
  • Milk Biscuits
  • Others
• Bread and Rolls
  • Artisanal
  • In-Store Bakeries
  • Packaged
• Cakes and Pastries
  • Artisanal
  • In-Store Bakeries
  • Packaged
• Rusks

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Specialty Stores
• Convenience Stores
• Online
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Bakery Products Market Share

By Product Type Analysis

Breads and rolls are high in demand as it is a staple food item among households of various regions

Bread is a staple food and holds the primary share in the baking industry, though its dominance is being challenged by the rapid growth of other bakery products like pastries and doughnuts. Cakes and pastries are experiencing rapid growth, driven by the increasing consumer demand for unique and indulgent bakery items.

The biscuits segment is a major component of the bakery products market, and it includes cream biscuits, glucose biscuits, Marie biscuits, non-salt cracker biscuits, salt cracker biscuits, and milk biscuits. Rusks are another product type within the market and can be found in artisanal bakeries, in-store bakeries, and packaged formats. Rusks are a type of twice-baked bread that is popular in many regions and is commonly consumed with hot beverages, like tea.

By Distribution Channel Analysis

Supermarkets and hypermarkets hold a significant market share due to their extensive reach and diverse product offerings

The supermarkets and hypermarkets segment dominates the global bakery products market they provide a wide variety of bakery products, ranging from fresh bread to packaged pastries. Their extensive reach, diverse product offerings, promotional capabilities, and one-stop shopping experience make them a prominent player in the bakery product distribution industry. Their large size allows them to offer special deals and discounts, further driving consumer preference.

As per bakery products market analysis, the artisanal bakeries cater to consumers seeking unique, premium, and freshly baked items, contributing to the overall growth of the market. Such bakeries make high-quality and handcrafted baked goods using traditional methods. Artisanal bakeries are particularly popular in regions like Europe, where there is a strong demand for authentic and locally sourced bakery products.

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Bakery Products Market Regional Insights

Europe Bakery Products Market Analysis

Europe currently represents the largest bakery products market and within Europe, Germany, Italy, and France hold significant positions. European bakeries that represent the region's rich bakery legacy and variety of offerings include Paul in France, Le Pain Quotidien in Belgium, and Gail's Artisan Bakery in the UK. Traditional bakery goods like pretzels and rye bread are mainstays in Germany, one of the world's biggest bread consumers. Germany's Federal Statistical Office stated in 2022 that while the country's bread consumption has not changed, consumers' interest in wholegrain, organic, and sourdough loaves is rising. Furthermore, it was predicted that Germany's annual per capita bread consumption was 82 kg, ranking among the highest globally. The market for baked goods has expanded in Italy as well, with a focus on classic breads like ciabatta and focaccia. Wholegrain and spelt breads, on the other hand, are growing more popular as they are healthier alternatives.

North America Bakery Products Market Trends

The North American bakery products market value is poised for significant growth, with iconic brands like Sara Lee, Pepperidge Farm, and Entenmann's leading the way in the United States. In North America, the demand for artisanal baked goods, gluten-free options, and healthier options is fueling competition and innovation among bakery companies. Large corporations, like Hostess Brands and Grupo Bimbo USA, are diversifying their product lines to offer healthier options, while small, artisanal bakeries are still doing well in urban areas. The demand for baked goods with less sugar and preservatives has increased because half of all Americans say they actively strive to eat healthily.

Asia Pacific Bakery Products Market Insights

Bakeries such as Theobroma in India, Patisserie Tomoko in Japan, and BreadTalk in Singapore demonstrate the rising demand for baked goods in the Asia Pacific region. These bakeries create distinctive baked delicacies by fusing traditional Asian ingredients with Western influences. Bread products are getting more and more popular in China, especially in the country's major cities like Shanghai, Beijing, and Guangzhou. Major cities are seeing a rapid expansion of Western-style bakeries, such BreadTalk and Paris Baguette, as they meet the growing demand for sourdough bread, croissants, and pastries. While cakes and cookies are still quite popular in India, artisan breads and baked goods in the western style are becoming more and more popular in Tier 1 cities like Bangalore, Delhi, and Mumbai, aiding the bakery products industry growth. Growing health consciousness among Indian customers is attracting them more and more to wholegrain and gluten-free products. In response to consumer demand for healthy baked goods, Britannia Industries, one of the biggest bakeries in India, introduced a new range of wholegrain breads and multigrain biscuits in 2023.

Latin America Bakery Products Market Analysis

Key markets in the region include Brazil, Mexico, and Argentina, where there is a high demand for bread, cakes, and pastries. While classic bakery mainstays like pão francês (French bread rolls) are still popular in Brazil, wholegrain and gluten-free products are becoming more and more in demand. Mexican sweet bread, conchas, and Mexican white bread, bolillo, are classic favorites in the country. On the other hand, the specialty baking goods sector is expanding quickly. The largest bakery in Mexico, Grupo Bimbo, introduced a range of gluten-free breads in 2022 in response to consumer demand for healthier options.

Competitive Landscape

Market players are focused on product innovation, strategic alliances, and effective branding and marketing strategies to stay ahead of the competition. Companies in the market compete based on various factors such as product innovation, pricing, quality, brand reputation, distribution channels, and responsiveness to consumer trends like health consciousness and sustainability.

Key Industry Players

Associated British Foods Plc was established in 1935 and is based in London, United Kingdom. The company operates in various sectors such as grocery, agriculture, ingredients, and retail. It is a prominent player in the food production and retail industry, offering a wide range of products and services.

Nestle S.A., founded in 1866, has its headquarters in Switzerland, United Kingdom. It is a global food and beverage company renowned for its extensive portfolio of products including dairy, coffee, confectionery, bottled water, breakfast cereals, and pet foods.

Britannia Industries Limited, established in 1892 and headquartered in Bangalore, India, is a leading player in the bakery and dairy industry. The company specialises in the manufacture and sale of biscuits, bread, rusk, cakes, and dairy products. Britannia is well-known for its iconic brands like Britannia and Tiger biscuits.

Other key players in the global bakery products market report include Grupo Bimbo, S.A.B. de C.V., Finsbury Food Group Limited, General Mills Inc., McKee Foods Corporation, Parle Products Pvt. Limited, ITC Limited, Walkers Shortbread Ltd, Lotus Bakeries NV, Kambly SA, and Annie’s Homegrown, Inc, among others.

Recent Developments

April 2024

Primark's parent company, Associated British Foods (ABF), has reported a 37% increase in half-year earnings to EUR 881 million. This growth is attributed to new store openings, price hikes, and an improved business climate.

October 2023

Mondelez International has introduced a new brand platform and premium offerings for Toblerone in key markets. The launch includes Toblerone Truffles in a unique diamond shape, and the expansion of Tiny Toblerone to U.S. retail stores. The chocolates aim to empower consumers to snack mindfully.

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Bakery Products Market Report Snapshots

Bakery Products Market Size

Bakery Products Market Growth

Bakery Products Market Trends

Bakery Products Market Share

Bakery Products Manufacturers

Bakery Products Market Regional Analysis