Bakery Products Market Analysis

Global Bakery Products Market Overview

Bakery Products Market size was valued at USD 360.96 billion in 2023. The bakery products industry is projected to grow from USD 372.42 Billion in 2024 to USD 479.29 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.20% during the forecast period (2024 - 2032). Growing consumption of ready-to-eat foods across the globe owing to hectic lifestyles and growing preference for ethnic food, along with the success of Thai and Mexican food in restaurants, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Bakery Products Market Trends

• Mounting demand for convenient food products to boost the market growth

Convenience is the primary driver for the bakery market. The fast-paced lifestyle increases the need to adopt convenient solutions in all aspects of life. Long working hours make it difficult for consumers to spend more time cooking. Thus, a hectic lifestyle boosts the consumption of ready-to-eat bakery products such as bread, cookies, cakes, tortillas, frozen pizza, and biscuits. Furthermore, high spending capacity and growing urbanization that results in a fast-paced lifestyle also play an essential role in surging the demand for convenient food. For example, in the US, doughnuts are considered anytime food and are often eaten as a meal substitute, whereas cakes are usually consumed as snacks.

Further, increasing consumer preference for convenience bakery products indirectly encourages the demand for frozen bakery products as they require less time and effort. The processed food market is driven by the increase in the need for convenience due to busy customer lifestyles. This, in turn, has led to an expansion in demand for frozen bakery products. In addition, the high growth of the frozen food industry due to the fast-growing urban households of developing countries is projected to drive the demand for frozen bakery products. The rise in per capita income and increased snacking between meals are the key factors encouraging the demand for frozen bakery products. The development of retail channels in supermarkets, hypermarkets, convenience stores, and specialty stores has enhanced the bakery products market CAGR across the globe in recent years.

Segment Insights

Bakery Products Product Type Insights

The bakery products market segmentation, based on product type, includes breads, cakes & pastries, cookies & biscuits, bagels, donuts, pizza & pizza crust, pies & tarts, and brownies. The breads segment held the majority share in 2022 in the bakery products industry revenue. This is primarily due to its high consumption among consumers of various ages. The high nutritional value, price, and convenience are primary factors that increase bread consumption in Western diets. However, cookies & biscuits is the fastest-growing category due to increasing consumer preferences in developed and developing countries.

April 2021: 4th Street Cookie Company launched two new oatmeal cookies, Orange Cranberry and Sunrise Granola. The snacking culture further influences the consumption of cookies and biscuits.

Bakery Products Category Insights

The bakery products market data has been bifurcated by category into fresh and frozen. The fresh segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is attributed due to increasing consumer demand for freshly baked products. However, frozen is the fastest-growing category due to rising demand for frozen bakery products such as cakes, pastries, ready-to-eat-muffins, and croissants owing to their long shelf life. Hence, changing lifestyles and increased work hours have positively impacted the market growth.

Figure 1: Bakery Products Market, by Category, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Bakery Products Distribution Channel Insights

Based on the distribution channel, the bakery products industry has been segmented into food retail and food service. Food retail held the largest segment share in 2022 due to its convenience and enhanced shopping experience. However, food service is the fastest-growing category due to its proximity, accessibility, and affordability.

Bakery Products Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Europe bakery products market accounted for USD 0.23 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the high demand for bakery products, such as gluten-free, high-fiber, and Trans-fat products, which staple foods across the region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BAKERY PRODUCTS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America bakery products market accounts for the second-largest market share owing to the high consumption of bread, cakes, and pastries. Leading players such as Mondelez International, General Mills, and Grupo Bimboo support the market growth in this region. Further, the US market of bakery products held the largest market share, and the Canada bakery products industry was the fastest-growing market in the North America region.

The Asia-Pacific bakery products Market is expected to grow at the fastest CAGR from 2022 to 2030. The increasing adoption of western diets in China, India, and other Southeast Asian countries supports the region's high growth. The rising number of women working for the population in the region and the growing disposable income support the market growth. Moreover, China market of bakery products held the largest market share, and the India bakery products industry was the fastest-growing market in the Asia-Pacific region.

Bakery Products Key Market Players & Competitive Insights

Major market players are spending a huge amount of money on R&D to increase their product lines, which will help the bakery products market grow even more. Market participants are also taking various strategic initiatives to grow their footprint globally, with key market developments such as recent product launches, contractual agreements, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the bakery products industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the bakery products industry to benefit clients and expand the market sector. The bakery products markets major players such as Grupo Bimbo SAB de CV (Mexico), Barilla Holding S.p.A. (Italy), Britannia Industries Limited (India), and others are working on expanding the market demand by investing in research and development activities.

The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American multinational food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago and Pittsburgh. Kraft Heinz is North America's third-largest food and beverage company and the fifth-largest in the world, with over $26.0 billion in annual sales as of 2021. In April 2022, the Kraft Heinz Company declared that it had completed the acquisition of Companhia Hemmer Indústria e Comércio, also known as 'Hemmer', a food firm located in Santa Catarina, Brazil. The acquisition is anticipated to enable the development of both companies in the future.

 Also, Finsbury Food Group plc operates a specialty foods business that supplies boxed cakes to supermarkets throughout the United Kingdom. The Group's products include novelty and celebration cakes, chocolate cakes, and muffins. In September 2021, Finsbury Food Group expanded its Mary Berry supermarket cake range with the launch of Bundt cakes. The Bundt cakes come in two flavors, lemon sponge cake with lemon icing, lemon curd drizzle, hand-decorated Belgian white chocolate curls, and chocolate sponge cake featuring chocolate icing and hand-decorated Belgian dark and white chocolate.

• April 2024- Fazer focuses on empowering its positions in all its markets. As a split of its approach, Fazer is contemplating merging both Baltic bakeries into one production division in Ogre in Latvia. The venture, including an innovative warehouse, additional picking processes, and renovated production, would total EUR 18 million, a substantial investment in the Baltic bakery market. Because of this change, Fazer began consultations that could cause the reduction of a maximum of 185 employees in Kaunas. Fazer Bakery Baltics is thinking of combining all production into one modern bakery in Ogre. Through this revolution, Fazer would be able to reinforce its position in the Baltic markets, guarantee competitiveness, expand product variety into new categories, and expand export sales further. Having one mutual factory together with an extended warehouse for frozen and ambient products, new picking procedures, and updated production capabilities would also enhance Fazer Bakery Baltics' supply chain efficacy, which is vital for all three Baltic markets. The investment would sum up to nearly EUR 18 million, a substantial investment in the Baltic bakery market. The Managing Director of Bakery Baltics, Anne Mere, said that the company has a strong number 2 position in the Latvian and Lithuanian markets and a number 3 position in Estonia, and their target is to empower their positions. With one updated production facility, the company will have the prospect of developing its known brands and product selections into new categories and meeting different consumer demands even better than before. The utilization of packed bread products has lowered in the Baltics for various consecutive years, and in the last year, the bakery market has dripped in volume by 2%*. Consumers have become more price-conscious, and the market is progressively campaign-driven, which has caused price competition and lower margins.

Key Companies in the Bakery Products market include

• Grupo Bimbo S.A.B. de C.V.(Mexico)


• Barilla Holding S.p.A. (Italy)


• Britannia Industries Limited (India)


• Dunkin' Donuts LLC (US.)


• Mondelez International Inc. (U.S.)


• Cole's Quality Foods Inc. (MI)


• Dawn Food Products Inc (MI)


• General Mills Inc. (US.)


• United Biscuits (UK)., among others

Bakery Products Industry Developments

April 2022: Walker’s Shortbread partnered with retailer Dufry to launch a new Travel Retailer range at more than 55 travel sites worldwide. The bakery products range will include several types of shortbreads and other bakery products in it.

February 2022: The Kraft Heinz Company and TheNotCompany declared a joint venture to concentrate on sustainability in the coming years. This investment is intended to drive innovations by using the strengths of both companies.

June 2021: With two new additions to its gluten-free lineup, Warburtons entered the free-from-cake market. Warburtons Gluten Free Cake Squares are offered in three packs and two flavors: Raspberry & Hazelnut and Chocolate Orange & Gingerbread.

January 2021: Chipita SA, a baker of packaged cakes and pastries, was acquired by Mondelez International Inc. Croissants, bagel chips, cake bars, biscuits, and spreads were among the company's products, which were largely offered under the 7Days, Chipicao, and Fineti names. Mondelez plans to use Chipita's Central and Eastern European distribution network to expand its regional distribution while introducing its brands to new nations in the region and beyond.

Bakery Products Market Segmentation

Bakery Products Type Outlook

• Breads


• Cakes & Pastries


• Cookies & Biscuits


• Bagles


• Donuts


• Pizza & Pizza Crust


• Pies & Tarts


• Brownies

Bakery Products Category Outlook

• Fresh


• Frozen

Bakery Products Distribution Channel Outlook

• Food Retail


• Food Service

Bakery Products Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America