Australia Cake Market Report and Forecast 2025-2034

Australia Cake Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia Cake market size reached around USD 1.13 billion in 2024. Aided by changing consumer preferences, increased disposable incomes, and an evolving food culture, the market is projected to grow at a CAGR of 3.03% between 2025 and 2034 to attain nearly USD 1.53 billion by 2034.

Cakes are a staple in Australian households, commonly consumed as desserts, snacks, and celebratory items. With the growing influence of food trends, the Australia cake market has seen significant changes in product offerings, ranging from traditional cakes to innovative, health-conscious varieties that cater to evolving consumer preferences. Additionally, cakes' popularity in both domestic consumption and special occasions such as birthdays, weddings, and public holidays remains strong. This multi-dimensional demand, coupled with a flourishing cake industry, is set to contribute to further market growth in the coming years.

One of the major drivers behind the growth of the Australia cake market is the shift in consumer preferences. Australian consumers are becoming increasingly experimental with their cake choices, seeking new flavors, ingredients, and experiences. This trend has encouraged bakeries and manufacturers to innovate, introducing a wide variety of flavors and fillings, such as exotic fruits, dairy-free, gluten-free, and low-sugar options. These innovative offerings appeal to a broader range of consumers, including those with dietary restrictions and health-conscious individuals. The increasing awareness of food trends and the growing demand for indulgent yet healthier cake options have led to the emergence of cakes that balance taste with nutritional value.

Over the last decade, Australia has seen a surge in the health and wellness movement, with more consumers seeking food products that align with their lifestyle choices. This shift has significantly impacted the Australia cake market, with manufacturers responding by offering healthier alternatives, such as gluten-free, sugar-free, dairy-free, and plant-based cakes. The demand for organic and naturally sourced ingredients has also increased, prompting the development of cakes with clean labels, free from artificial additives and preservatives. Cakes that offer reduced calorie content or incorporate functional ingredients, such as superfoods or protein, are gaining popularity among health-conscious consumers. This growing focus on health and wellness presents both opportunities and challenges for the cake market, with brands needing to balance indulgence with nutritional claims.

Another key driver aiding the Australia cake market expansion is the increasing importance of online and retail bakery channels. With the rise of e-commerce and digital platforms, consumers are increasingly opting to purchase cakes online for convenience, customisation, and home delivery options. The online cake market allows consumers to personalise cakes for special occasions, order cakes from the comfort of their homes, and have them delivered directly to their doorsteps. The expanding presence of bakeries in the retail space, from traditional standalone stores to major supermarket chains, is further making cakes more accessible to a wider demographic. Additionally, the trend of offering cake mixes and ready-to-bake cake kits in supermarkets has also gained traction, providing consumers with easy access to cake-making materials.

As per the Australia cake market analysis, cakes have long been a symbol of celebration in Australia. From birthdays to weddings and public holidays, cakes are often the centrepiece of significant events. This continued cultural affinity for cakes as a celebratory food item has bolstered their consumption in both casual and formal settings. The association of cakes with positive emotions and milestones—whether personal or societal—fuels the steady demand for cakes year-round. Special occasions, such as Christmas, Easter, and Australia Day, see a spike in cake consumption, with bakeries and brands offering seasonal and limited-edition flavours to cater to the festivities. This aspect of the market remains a reliable source of revenue for cake manufacturers and retailers.

Despite the positive growth prospects, the Australia cake market faces several challenges. One of the primary obstacles is the rising cost of ingredients. As global supply chains are affected by factors such as climate change, rising commodity prices, and labour shortages, cake manufacturers are facing higher production costs. This, in turn, could result in increased prices for consumers, potentially dampening demand, especially for price-sensitive segments.

Furthermore, the growing prevalence of dietary restrictions, such as veganism, gluten intolerance, and lactose sensitivity, has created a more demanding consumer base. Although the market is responding with a variety of specialised cakes, ensuring the consistency, flavour, and texture of these alternative cakes can be a difficult challenge for bakers and manufacturers.

Looking ahead, the Australia cake market is poised for steady growth driven by evolving consumer preferences, the increasing demand for both premium and healthier cake products, and the continuing importance of cakes on celebratory and special occasions. The innovation in flavors, ingredients, and packaging will play a crucial role in maintaining market dynamism. As consumers continue to seek convenience, health-conscious options, and personalisation, cake manufacturers will need to stay agile, adapting to these changes to meet the growing demand.

The growing role of online and retail bakery channels will further contribute to the Australia cake market development, making cakes more accessible and customised to individual preferences. Additionally, the premiumisation trend will continue, as consumers indulge in cakes not only for taste but for unique experiences.

In conclusion, the Australia cake market is expected to continue its positive trajectory, driven by a combination of convenience, innovation, and the enduring cultural importance of cakes in celebrations. The market presents both opportunities and challenges as manufacturers navigate the growing demand for healthier and more sustainable options while capitalising on the timeless appeal of cakes as indulgent treats. With the right balance of quality, innovation, and accessibility, the market will continue to thrive in the coming years.

Market Segmentation

The market can be divided based on form, product type, distribution channel, and region.

Market Breakup by Form

• Packaged
• Unpackaged/Artisanal

Market Breakup by Product Type

• Cupcakes
• Cheesecakes
• Dessert Cakes
• Sponge Cakes
• Others

Market Breakup by Distribution Channel

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

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia cake market. Some of the major players explored in the report by Expert Market Research are as follows:

• Black Velvet & Co Pty Ltd.
• Sugar High Australia Pty Ltd. (Cake Mail)
• Cakes2U
• Ferguson Plarre Bakehouses Pty Ltd.
• Town Inn Pty Ltd. (Miss Maud)
• Khatib Pty Ltd. (Looma’s)
• Marks Quality Cakes
• Mrs Jones The Baker
• Sydney SmashCakes
• Sydney Cake House Sdn. Bhd.
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.