Frozen Bakery Market

Growing Urbanization and Preference for Convenience Foods to Accelerate Market Growth

More than half of the world's population now resides in cities, and nearly every nation on the planet is urbanizing more and more. In 2018, there were 4.2 billion people living in urban areas around the world, up from 751 million in 1950, according to the United Nations World Urbanization Report. This means that nearly 55% of the world's population currently resides in urban areas, and by 2050, that number is projected to rise to 68%. As a result, compared to consumers in rural regions, urban consumers have access to a considerably greater selection and better availability of food.

Furthermore, this urbanization trend greatly raises living standards and earnings, which has a stronger impact on the affordability of frozen bakery goods. The demand for convenience food products is also developing quickly in tandem with urbanization, mostly as a result of changing lifestyles, an increase in nuclear families, a rise in the percentage of working women, and a reduction in the amount of time spent on meal preparation. Due to their portability and lengthy shelf lives, frozen bakery products have a strong argument for their market to increase at an accelerated rate.

Thus, this factor is driving the market CAGR for frozen bakery.

However, consumers are striving to lead healthier lives in keeping with their evolving lifestyles. Customers are looking for particular healthy, convenient, and light foods, such as slices of bread, etc., due to busy schedules and lengthening work shifts. Almost all industrial bakers in Europe now have bake-off bakery output as one of their main objectives. Baking from scratch is time- and labor-consuming. Traditional baking is being replaced by Bake-Off technology in the business (BOT). Unfermented frozen dough (UFD) partially baked frozen bread (PBF), and partially baked unfrozen bread are the three main BOTs (PBUF).

In particular for the hotel and catering industries, frozen semi-baked items and ready-to-bake goods are significant product categories for the food business. The majority of bakery goods, such as bread, rolls, and bagels, are sold in ready-to-thaw form, whereas croissants and pastries are sold in ready-to-bake form. Agriculture and Agri-Food Canada predicted that 4.1 thousand metric tonnes of frozen baked goods would be sold in retail in 2021. This was an increase of 100 metric tonnes compared to numbers forecast for 2020, and it represents an increase of about 8% compared to predictions from 2017.

Thus, it is anticipated that this aspect will accelerate frozen bakery market revenue.

The Global Frozen Bakery Market Industry is projected to experience substantial growth, with a market value expected to reach 42.8 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate (CAGR) of 7.02% from 2025 to 2035, highlighting the increasing consumer interest in frozen bakery products. Factors such as convenience, product innovation, and health trends are likely to drive this expansion. As the market evolves, stakeholders must remain vigilant to capitalize on emerging opportunities and adapt to changing consumer preferences, ensuring sustained growth in the Global Frozen Bakery Market Industry.

The Global Frozen Bakery Market Industry is increasingly influenced by health and wellness trends, as consumers become more health-conscious. This shift prompts manufacturers to innovate and offer healthier frozen bakery options, such as whole grain, gluten-free, and organic products. The growing awareness of dietary choices encourages consumers to seek products that align with their health goals. As a result, the market is likely to witness a surge in demand for nutritious frozen bakery items, which could significantly impact overall sales. This trend reflects a broader movement towards healthier eating habits, further shaping the landscape of the Global Frozen Bakery Market Industry.

The Global Frozen Bakery Market Industry benefits from the expansion of retail channels, including supermarkets, hypermarkets, and online platforms. As retailers enhance their frozen food sections, consumers gain easier access to a variety of frozen bakery products. This accessibility is crucial in driving sales, as it allows consumers to explore diverse offerings, from artisanal breads to gourmet pastries. The rise of e-commerce also plays a pivotal role, enabling consumers to purchase frozen bakery items from the comfort of their homes. This trend is expected to contribute to the market's growth, aligning with the projected increase in market value to 42.8 USD Billion by 2035.

The Global Frozen Bakery Market Industry experiences a notable increase in demand for convenience foods, driven by the fast-paced lifestyle of consumers. As individuals seek quick meal solutions, frozen bakery products such as pre-baked bread, pastries, and desserts become increasingly appealing. This trend is reflected in the projected market value of 20.3 USD Billion in 2024, indicating a robust consumer preference for ready-to-eat options. Furthermore, the convenience factor is likely to propel the market's growth, as busy households and working professionals prioritize time-saving food solutions. This shift in consumer behavior underscores the importance of convenience in the Global Frozen Bakery Market Industry.

The Global Frozen Bakery Market Industry is witnessing a growing popularity of ethnic flavors, as consumers increasingly seek diverse culinary experiences. This trend is evident in the rising demand for frozen bakery products that incorporate traditional flavors from various cultures, such as Asian, Mediterranean, and Latin American cuisines. As manufacturers respond to this demand by introducing innovative products, they tap into new consumer segments and expand their market reach. This diversification of flavors not only enhances the appeal of frozen bakery items but also contributes to the overall growth of the market, reflecting the evolving tastes of global consumers.

Technological advancements in production processes are transforming the Global Frozen Bakery Market Industry. Innovations such as automated baking systems and improved freezing techniques enhance product quality and shelf life. These advancements not only streamline production but also allow for greater consistency in product offerings. As manufacturers adopt cutting-edge technologies, they can respond more effectively to consumer demands for variety and quality. This evolution in production capabilities is likely to drive market growth, as companies can efficiently produce a wider range of frozen bakery products to meet the diverse preferences of consumers.

By region, the study provides the market insights for frozen bakery into North America, Europe, Asia-Pacific and Rest of the World. Europe frozen bakery market accounted for USD 8.7 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study period. In the upcoming years, there are anticipated to be significant growth potential due to the expansion of the catering and tourism industries in European nations including Germany, Italy, and the U.K. Breakfast menu preferences among consumers favor ready-to-eat items, which has increased product demand.

The availability of gluten-free baked goods for health-conscious consumers has also contributed to the region's rise.

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

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

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Asia Pacific market of frozen bakery accounts for the second-largest market share due to things including a sedentary lifestyle, growing discretionary wealth, and developing economies. Traditional household dynamics have changed as a result of the rising number of working women, and convenience and ready-to-eat food preferences have increased noticeably as a result. Moreover, China frozen bakery market held the largest market share, and the India frozen bakery industry was the fastest growing market in the region.

North America market of frozen bakery is expected to grow at the fastest CAGR from 2022 to 2030. Due to the fact that frozen bakery goods have a significantly longer shelf life than traditional goods, there is a greater demand for these goods in the area. In response to the growing consumer demand for organic and healthy products, market competitors are concentrating on offering goods with healthy and organic ingredients and less artificial preservatives. Further, the US frozen bakery industry held the largest market share, and the Canada frozen bakery industry was the fastest growing market in the region.

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

One of the primary business strategies adopted by manufacturers in the frozen bakery industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, frozen bakery industry has provided medicine with some of the most significant benefits. The frozen bakery market major player such as Grupo Bimbo S.A.B. De C.V., Associated British Foods Plc, Aryzta AG. Dawn Food Products Inc., Lantmannen Unibake International, Rich Products Corporation, Europastry S.A., General Mills Inc., Kellogg Company and Conagra Brands Inc.

Products for baked food are offered by Europastry SA. The business sells bread, croissants, muffins, cakes, rolls, pastries, and desserts. Customers from Spain are served by Europastry. In December 2022, Europastry SA announced the acquisition of Dawn Foods, a  distributor and manufacturer of baked goods, along with its frozen bread production operations in Asia, the Middle East, Europe, and the Pacific. The sale comprised all of Dawn's client relationships in the region that purchased frozen items produced by Dawn, as well as its baking and research & development facilities in Steenbergen, the Netherlands, and Evesham, the United Kingdom.

The American wholesale maker and distributor of breads, baked goods, mixes, and other culinary products is called Dawn Foods (formerly known as the Dawn Donut Company). The business has a  reach and is headquartered in Jackson, Michigan. In North America, the corporation runs sixteen distribution centers. In July 2021, Dawn Food Products Inc. purchased Icopa, a significant Portuguese distributor of bakery goods. The acquisition aims to preserve the company's supply chain and strengthen distribution networks. Furthermore, the company wants to grow since it can quickly deliver its goods to a wide customer base.