Bakery Products Market Assessment, By Product Type [Biscuits and Cookies, Cakes and Pastries, Breads and Rolls, Others], By Price [Premium, Affordable], By Specialty [Gluten-free, Organic, Vegan, Sugar-free], By End-user [Commercial, Residential], By Dist

Bakery Products Market Assessment, By Product Type [Biscuits and Cookies, Cakes and Pastries, Breads and Rolls, Others], By Price [Premium, Affordable], By Specialty [Gluten-free, Organic, Vegan, Sugar-free], By End-user [Commercial, Residential], By Distribution Channel [Convenience Stores, Grocery Shops, Internet Retailing, Supermarkets/Hypermarkets, Others], By Region, Opportunities and Forecast, 2017-2031F

Global bakery products market was valued at USD 551.55 billion in 2023, expected to reach USD 789.78 billion in 2031, with a CAGR of 4.59% for the forecast period between 2024 and 2031. The complexity of bakery goods varies these days, ranging from the few ingredients of a basic pastry to complicated cake recipes. Alongside advancements in many associated sectors of science and technology, bakery items have evolved from their original, basic forms to more contemporary variations with specialised features and functionalities, all made possible by advanced production processes. Manufacturers today stay up to date on the latest scientific and technological advancements in bakery products to forecast future trends in the industry, identify the most crucial areas to focus the limited resources allocated to research and development, and consistently increase the productivity of current practices.

The nutritional, sensory, and textural qualities of bakery items make them desirable and well-liked. Nonetheless, these characteristics begin to decline right away after baking, resulting in staleness, flavor and moisture loss, and a short shelf life. Consequently, companies are concentrating on creating cutting-edge methods and technologies for bakery product packaging and preservation. The quality of baked goods is influenced by both environmental storage conditions and the overall product quality, which in turn affects the products' acceptance.

Moreover, the market for functional foods is expanding at a faster rate due to consumer desire for healthier food products that enhance physical and mental health, avoid diseases connected to nutrition, and enhance nutrition. The baking sector is using ingredients to try to enhance the products' health benefits. Manufacturers are incorporating unconventional flours into their products to make them healthier and functional.

Overall, global bakery products market is thriving with manufacturers introducing innovative products catering to diverse tastes and preferences of consumers.

In August 2023, the fourth-generation family-owned bakery, Zaro’s Family Bakery, launched a range of challah products including buns, hot dog buns, sandwich bread and dinner rolls. The company has several standalone bakeries in New Jersey and New York.

Introduction of Unconventional Flours Drives Market Growth

Bakeries use unconventional flours from fruits, legumes, and tubers to replace wheat flour or provide gluten-free options. Unconventional flours in bakery items contain nutritional fibre and beneficial substances not found in wheat or maize flour. Lowering digestible carbs reduces blood glucose levels, leading to health advantages. Bakery items often include a large amount of starch, which becomes digestible during the heating process. Combining wheat or maize flour with dietary fiber-rich foods like unripe fruit and legume flours reduces starch digestion. Unripe bananas contain significant levels of resistant starch. Recent research indicates that adding unusual flours from unripe fruits and legumes to bakery items increases the quantity of resistant starch, nutritional fibre, and bioactive substances. Consumers seek bakery products with unconventional flours as an alternative to functional bakery products. In September 2023, Moyu, a superfood-based baking company, was launched in the United States through its website eatmoyu.com. The company manufactures baked goods using unconventional flour derived from Konjac plant, which is mainly originated in China.

Growing Demand for Dietetic Bakery Products

Consumer attitudes regarding the role of diet in an individual's lifestyle are evolving due to rising consumer expectations, greater consumer income, and improved consumer awareness of nutrition. Global health systems in both wealthy and developing nations are focusing on controlling chronic diseases, such as cardiovascular, diabetes, and cancer, to address rising death rates. Thus, evaluating the health effects of eating patterns has been a significant area of research in recent years. People seek healthy bakery options which are beneficial to them and minimize the health risks. Many consumers believe in ""We are what we eat"" to guide their dietary decisions. Bakers are continually bringing products that align well with the tastes and dietary needs of such consumers. To capitalize on this trend, in March 2023, Dr. Schär AG / SPA made an investment of USD 7.2 million to introduce a new gluten-free production line to its manufacturing plant in Spain. The facility is in Alagón, Zaragoza and offers gluten-free pastries and other confectionery products.

Challenges Faced by the Industry

The most significant challenge manufacturers face is increasing production capacity to keep up with the needs of the modern world. To address the growing demand for healthier food options, bakeries and shops tend to improve the hygiene of their facilities and hire staff who are knowledgeable about these products. Developing unique items is another significant obstacle for the sector, given the growing competition in the market. Additionally, there's a need to increase knowledge of the ease of use of social media platforms and digital technologies that can aid unorganised bakeries in expanding their market reach. Currently, many bakeries belong to unorganized sector in comparison of organized bakeries.

Europe Dominates the Market

Geographically, Europe is dominating the global bakery products market showcasing a vast market for gluten-free and high-fiber bakery products. Artisanal baking is one long standing tradition of European countries, which has led to the development of high-quality bakery products with original flavours and textures. Additionally, the region has a growing demand for convenient and ready-to-eat foods which propels the demand for bakery products. Moreover, several well-known bakeries and cafes exist in the region that leverage extensive distribution networks to ensure mass reach. Manufacturers are focusing on introducing healthier and premium bakery options attracting consumers who seek wholesome and diverse food options. In January 2024, with the introduction of the first ready-to-use regeneratively-farmed products in the market, Puratos UK stepped up to the task of making sourdough more sustainable. Sapore Sally, the newest addition to the Sapore line of active and inactive sourdoughs, is a live sourdough created with flour from UK-based Wildfarmed that has been grown regeneratively. It is created to assist big bakeries in broadening their product offerings by including sustainably sourced, locally made sourdough items.

Future Market Scenario (2024 – 2031F)

Growing health and wellness awareness is likely to enhance the demand for healthier bakery options including low-sugar, gluten-free, and organic products. More focus on incorporating nutritious ingredients is expected in the future.

Growth of e-commerce will continue enabling manufacturers to expand their online presence and help them reach a larger customer base. Customization options and better and convenient delivery services will add to the growth of e-commerce sector in bakery market.

Growing emphasis on sustainability will lead to adopting eco-friendly manufacturing practices, such as food waste reduction, efficient use of renewable energy sources, and adoption of biodegradable packaging.

Key Players Landscape and Outlook

Global bakery products market holds a dynamic landscape with several key players introducing innovative products and shaping the outlook of the industry. Prominent players hold major market share by working on product diversification, expanding with a variety of bakery products, and making sustainability efforts. Innovation and portfolio expansion is the essence of the market enabling competitors expand and maintain their respective market shares. Strategic mergers and acquisitions help shape the market outlook with companies offering new product lines and entering new markets. In January 2024, Spain-based gluten-free bakery company Amaritta Food SL was acquired by Grupo Bimbo, S.A.B. de C.V., with the aim of adding gluten-free bread in Bimbo’s product portfolio.